Ontario is moving forward with plans to reintroduce a law that would ban the resale of tickets for more than their original cost, a policy that had been proposed by the previous Liberal government and later abandoned by the Ford administration in 2018. The province announced on Friday that it is preparing legislative changes to make it illegal to resell tickets for profit, a policy Premier Doug Ford had previously discussed when the Toronto Blue Jays made their historic run to the World Series in 2019.

Consumer Protection and Market Concerns

According to Minister of Public and Business Service Delivery and Procurement Stephen Crawford, the new measures are designed to protect consumers from being overcharged in the ticket resale market. ‘With these new measures, consumers would no longer need to worry about being ripped-off in the ticket resale market, and more families and fans would have the opportunity to see their favourite band or sports team perform live,’ Crawford said in a statement.

The government has stated that the proposed legislation would address ‘long-standing concerns’ about inflated ticket prices. It would cover a wide range of events, including sports, live music, and other cultural events. However, the province has not yet finalized the penalties for individuals who resell tickets above face value. Once the law is enacted, it will apply to all future resales.

Ontario’s move to reintroduce the ticket resale ban comes nearly five years after the Progressive Conservatives, led by Premier Doug Ford, scrapped a similar law introduced by the previous Liberal government in 2017. At the time, the Liberals had included a provision in the Ticket Sales Act that would have imposed a cap on resale prices. However, the Ford government halted the implementation of this rule shortly after taking office in 2018.

Previous Opposition to Resale Caps

One year after halting the implementation, in 2019, the Ford government formally canceled the rule, citing concerns that it would be unenforceable and could drive consumers to the black market. The government argued that such a cap would not only be difficult to monitor but could also lead to increased ticket prices and a more underground resale market.

Despite these concerns, the current government has decided to reintroduce the policy, citing public demand and ongoing complaints about high ticket prices. According to a 2023 survey by the Canadian Ticketing Association, 72% of Ontarians believe that ticket resellers should not be allowed to charge more than the original price. This sentiment has been growing over the past few years, particularly as major events have seen significant price hikes in the secondary market.

The proposed legislation will be introduced when the legislature reconvenes next week. If passed, it would be among the first major consumer protection laws enacted by the Ford government. The law would apply to all ticket resales moving forward, but the government has not yet provided specific details on enforcement mechanisms or penalties for violations.

Impact on the Resale Market

Industry experts predict that the reintroduction of the resale cap could have a significant impact on the secondary ticket market. According to a report by the Canadian Association of Ticket Brokers, the resale market for major events in Ontario has grown by 18% over the past three years, with prices often exceeding the original face value by 200% or more.

‘If this law is passed, it could drastically reduce the profitability of ticket resellers and potentially drive some of them out of the market,’ said Mark Taylor, a Toronto-based event marketing consultant. ‘However, there’s a risk that this could push more transactions underground, making it harder for authorities to monitor and enforce the law.’

Despite these potential challenges, the government remains committed to the policy, citing the need to protect consumers and ensure that more people can afford to attend live events. ‘This is about fairness and accessibility,’ said Crawford. ‘We want to make sure that everyone has the opportunity to enjoy live performances, regardless of their financial situation.’

The legislation is expected to face scrutiny from both the opposition and industry stakeholders, who have raised concerns about its enforceability and potential unintended consequences. However, the government has not indicated any plans to delay the introduction of the bill, and officials have emphasized that the focus is on moving forward with the legislation as soon as possible.

If the law is passed, it would mark a significant shift in Ontario’s approach to ticket pricing and consumer protection. It would also be a major policy reversal by the Ford government, which had previously opposed similar measures. The decision comes at a time of growing public frustration with high ticket prices and the perceived unfairness of the secondary market.