Despite the law prohibiting the resale of tickets at a price higher than their original price, the amounts are skyrocketing. For the Portugal-Croatia match in Toronto, where Cristiano Ronaldo is expected to play, tickets on platforms such as StubHub and SeatGeek reach almost $31,000.
The Ontario government, which reiterates its desire to ensure a fair and transparent market, describes these platforms as bad actors
and threatens them with financial penalties of up to $250,000.
However, Ontario legislation conflicts with the reality on the ground.
Integrity system and logistical shortcomings
The application of this law largely depends on the integrity of the resellers, explains Jennifer Quaid, a professor at the Faculty of Law at the University of Ottawa.
During a hearing before the Ontario Licensing Appeal Tribunal, StubHub said it tried to comply with the rules by adding a simple checkbox to allow resellers to confirm the price paid on base.
Although the government judges this way honor system
is insufficient and requires written confirmation, introducing more stringent controls is proving extremely difficult.
Without a cumbersome system of individually checking each ticket, the law does not apply, Jennifer Quaid emphasizes.
The intention of the legislators is very commendable, but this, in my opinion, is not the mechanism that will ultimately work.
It is even more difficult to apply because tickets for the match between Croatia and Portugal were sold out long before the law came into force, in April.
The platforms also note that it is sometimes impossible to determine the denomination because some tickets are initially distributed for free.
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Croatia fans have already seen their team play in Toronto at the World Cup, against Panama on June 23. With a seating capacity of 45,000, Toronto is the smallest of the tournament’s 16 stadiums.
Photo: RCI/Maria Gabriela Aguzzi
The reality of the free market is also catching up with legislation. For global events with limited stadium capacity, demand will always be a multiple of supply. These forces are beyond the control of the government, the professor explains.
Vijay Setlur, a sports marketing expert and professor at York University’s Schulich School of Management, notes that the lack of European stars in Canada is exacerbating demand, especially in the Portuguese and Croatian communities.
This madness escapes government control and pushes consumers towards unofficial paths. Ms Quaid warns that this creates other problems, in particular a very significant risk of fraud.
Entertainment: a new luxury product?
The question arises: should the government devote significant resources to controlling the prices of entertainment products? The professor reminds that sporting events and concerts (like Taylor Swift) are not essential services, but entertainment.
Faced with this dynamic, the observation becomes bitter: entertainment is becoming a luxury product, which now prevents ordinary family
to attend, the professor regrets.
However, targeted allocation at source will limit speculation.
If they want to democratize access, then those organizers (whether FIFA, the Blue Jays or artists) must agree to cut their profits for direct ticket sales or reserve certain sections for certain groups, Ms. Quaid explains.