Ontario Protecting Consumers in the Resale Ticket Market
New Rules to Protect Consumers from Purchasing Fraudulent Tickets
Ontario is making changes to the Ticket Speculation Act, which come into effect July 1, 2015, that will help reduce fraud and give consumers greater confidence in the tickets they are purchasing.
In recent years, the selling of tickets online has grown in popularity. However, consumers in the online resale market can be vulnerable to fraud as electronic tickets can be easily reproduced.
In an effort to protect consumers from purchasing fraudulent tickets, Ontario is creating an exemption under the Ticket Speculation Act to:
- Enable official ticket sellers to authenticate tickets that are being resold
- Permit tickets to be resold above face value in circumstances where tickets are authenticated or have a money-back guarantee
- Allow tickets to be resold at a price that includes any service fees paid when the ticket was first purchased.
Partnering with industry to help protect consumers against fraud is part of the Ontario government's economic plan to build Ontario up. The four-part plan includes investing in people's talents and skills, making the largest investment in public infrastructure in Ontario's history, creating a dynamic and innovative environment where business thrives, and building a secure retirement savings plan.
- Anyone who resells a ticket for more than face value without using a verification system or without an effective money-back guarantee will still be breaking the law.
- Ticket fraud is a growing concern in the sports and entertainment industry. Some vendors have reported that at large stadium events there is an average of 50 to 60 instances of invalid tickets.
- To create this new regulation, the Ontario government consulted with industry and the public in fall 2014.
“We know that there is a huge market for resold tickets online — and that isn’t changing any time soon. We want to make sure Ontario consumers are protected, and we are looking to the sports and entertainment industry to support us in this effort.”
“Ontarians who buy resold tickets online deserve to be as confident in their purchases as someone who purchases their tickets directly from the venue. That’s why we are committed to taking action to strengthen consumer protections for the people of Ontario when it comes to purchasing resold tickets from a third party.”