Ontario’s new ticket resale legislation appears to be driving traffic to more loosely-regulated marketplaces, according to some season ticket holders, as sellers look for new means of selling tickets for a profit while skirting provincial laws.
The legislation, aimed at levelling the playing field for sports fans and concertgoers, mandated that resale tickets cannot be listed for more than face value. Rule breakers, the province said, could face fines of up to $50,000 while corporations could be charged $250,000 if convicted.
Season ticket holders, who pay one bulk price well before the start of the season, say the new law has forced them to sell certain games for a loss, but teams can still charge more for high-profile matchups with dynamic pricing.
To try and get back on even ground, while avoiding sales fees on larger platforms, some sellers have turned to apps like Facebook Marketplace, hoping to flip their excess season seats for market value.
A quick search of ‘Toronto Blue Jays’ results in a number of $1 listings on an “ask-first basis” with the sale price then privately negotiated via direct message, far from the eyes of the government.
Potential pitfalls of selling on Facebook Marketplace
Global News spoke with one Toronto Blue Jays season ticket holder who switched from more established resale venues to Facebook Marketplace after the legislation took effect.
The seller, who spoke on the condition of anonymity, became a season ticket holder three seasons ago, and sells off some games she can’t attend or higher-value games to make up for the rest of the package.
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“Some of the games I sell at a loss, so I do need to actually sell some of the games at a higher price just to make up the cost when the market allows for that,” the seller said.
She said she isn’t trying to gouge, but just trying to sell for the same rate as the team. “Why can I not meet that price that the Jays are currently selling them for? They’re using my money easily six months ahead of time,” she said.
Her migration to Facebook Marketplace, however, got off to a rocky start.
Potential customers initially questioned her lack of selling history on the site, while others refused to send money until they received the tickets, which left both parties at an impasse.
While some transactions were successful, the seller said unregulated sales on the platform come with higher risk for both buyer and seller.
“There’s a risk for the buyers because they’re required to send money before they receive the tickets. [Sellers] can send you a screenshot, but that doesn’t mean [they’re] going to e-transfer them to you or transfer them to you,” the seller said.
The seller also raised privacy issues, such as sharing a personal email to receive e-transfers or to transfer tickets.
“I’m now sharing personally identifiable information, and for me, that puts myself at a level of risk,” she said.
Less regulation can mean more scams
The lack of regulation on Facebook Marketplace can make the app more friendly to bad actors.
“It’s a ripple effect,” said Tan Husnani, a 12-year Toronto Raptors season ticket holder. “You’ll see individuals on Facebook claiming ‘yeah I have those tickets’ when they really don’t, they say ‘yes yes yes’ to multiple people and then hook one of the fishes and get whatever amount they were charging.”
Other jurisdictions that have experimented with ticket legislation have reported a rise in scammers, according to Jay Goldberg from the Consumer Choice Centre.
“In Ireland, where they passed similar legislation, fraud increased with fake tickets,” Goldberg said. “Roughly 14 per cent of people going to sporting events and concerts in Ireland are showing up with fake tickets.”
Goldberg said the government made a mistake with this legislation.
“The question is, are you regulating [reselling] or are you preventing it? And what this legislation does is essentially prevent it and drive people to the black market, where they’re not going to be buying tickets in a safe situation, where they’re going to be buying potentially fake tickets and showing up to events, and ultimately not being able to go in.”
Multiple season ticket holders who spoke with Global News agreed that the new resale rules are a good idea in theory, but that a carveout is needed so that they too can sell tickets for games they can’t attend at market value.
“I think they were trying to do something good,” Husnani said, “and it backfired on us.”
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