Is It a Crime to Use Scalper Bots in Ontario?

Using scalper bots to purchase event tickets is illegal in several Canadian provinces, including Ontario, Alberta, and British Columbia. However, it is not a federal crime under the Criminal Code. These laws are part of provincial consumer protection legislation, meaning the penalties and enforcement vary by province.

In Ontario, scalper bots became a provincial offence on December 14, 2017, when the Ticket Sales Act received Royal Assent as part of new consumer protection legislation.

 What Are Scalper Bots?

Scalper bots are automated software programs that buy large numbers of tickets online for concerts, sporting events, and other popular events. The operators then resell these tickets at significant markups, often before regular consumers can complete their purchases.

The practice had become widespread, driving ticket costs unreasonably high and frustrating consumers who found events sold out within seconds of tickets going on sale. The ban on scalper bots was largely welcomed by ticket sellers and event hosts seeking to restore fairness to the ticket-buying process.

What Does Ontario’s Ticket Sales Act Prohibit?

The Ticket Sales Act contains several key prohibitions designed to combat ticket scalping and protect consumers.

Scalper Bot Ban: Section 4(1) prohibits any person from using or selling software, including automated ticket-purchasing software, intended to circumvent security measures, access control systems, or other controls used to ensure an equitable ticket-buying process.

Resale of Bot-Purchased Tickets: Section 4(3) makes it illegal to knowingly make a ticket available for sale or to facilitate the sale of a ticket obtained through prohibited software.

Speculative Sales: Section 3 prohibits anyone from making a ticket available for sale if they do not have the ticket in their possession or control.Resale Price Cap: Section 2(2) prohibits selling tickets on the secondary market for more than 50 percent above the ticket’s face value, including fees and service charges, but excluding taxes.

What Are the Penalties for Violating the Ticket Sales Act?

Violations of Ontario’s Ticket Sales Act are provincial offences, not criminal offences. The penalties include fines of up to $50,000 and potential imprisonment for individuals, and fines up to $250,000 for corporations.

While these are significant penalties, a conviction under the Ticket Sales Act would not result in a criminal record.

What Disclosure Requirements Apply to Ticket Sellers?

The legislation imposes transparency requirements on ticket sellers at all levels.

Primary Sellers Must:

• Publicly disclose the distribution method of all tickets before making them available for sale
• Disclose the maximum capacity for the event
• Display the total price with a separately itemised list of fees, service charges, and taxes
• Print or display the face value on the ticket when issued

Secondary Sellers and Resale Platforms Must:

• Disclose the face value and total price of the ticket
• Provide a separately itemised list of fees, service charges, and taxes
• Disclose the seller’s name, location, and contact information
• Use Canadian currency unless clearly indicated otherwise
• Disclose the location of the seat or standing area

What Consumer Protections Does the Act Provide?

When tickets are sold on the secondary market at a price above face value, sellers must provide one of two guarantees to purchasers. The first option is a full refund guarantee covering situations where the event is cancelled, the ticket does not grant admission (unless due to primary seller or venue action after the sale), the ticket is counterfeit, or the ticket does not match its description. Alternatively, sellers may provide a confirmation from the primary seller that the ticket is valid.

Do Other Provinces Have Similar Laws?

Yes. Several other provinces have enacted legislation to combat ticket bots.

Alberta: The provincial Consumer Protection Act makes using bots to circumvent the ticket purchase process illegal. Anyone using bots or selling tickets obtained through bots may face enforcement action.

British Columbia: The province enacted its own Ticket Sales Act in 2019, which also bans speculative resales in which the reseller does not yet possess the ticket.

However, there is no single, nationwide federal law that universally makes the use of scalper bots a crime across all provinces.

What Are the Challenges With Enforcement?

Law enforcement acknowledges that enforcing scalper bot legislation can be difficult when bots often operate from outside Canada. The laws aim to undercut both the profit incentive and resale abilities rather than relying solely on prosecution.

The 50 percent resale cap is designed to remove the financial incentive for using bots. Disclosure requirements make it easier to identify violations and hold sellers accountable.

Some ticket resale platforms have warned that artificially controlling a global market may lead to unintended consequences. They suggest resales could be driven off secure channels into places where consumers are exposed to counterfeit tickets and fraud with fewer protections.

Major ticket sellers like Ticketmaster have invested heavily in their own technology to block bots, reporting that they block billions of bot attempts annually.

What Exceptions Exist Under the Ticket Sales Act?

The prohibition on bot software does not apply in certain circumstances. These include software used to investigate a contravention of any Act or law, as well as research intended to identify and analyse flaws and vulnerabilities in security measures to advance computer system security knowledge or develop security products. The prohibition also does not apply to activities prescribed for research or educational purposes.

Have You Been Charged With a Ticket Sales Act Violation?

If you are facing charges under Ontario’s Ticket Sales Act or any other provincial offence, understanding your options is important. While these are not criminal charges, the penalties can be significant and the process complex.

Pyzer Criminal Lawyers has over two decades of experience helping clients throughout Toronto and the GTA with criminal and regulatory matters. Contact us at (416) 658-1818 for a free, confidential consultation to discuss your situation.