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Quebec is cracking down on ticket reselling and hidden subscription renewals with a new bill introduced Tuesday by Justice Minister Simon Jolin-Barrette that would overhaul key sections of the province’s Consumer Protection Act (CPA).
“Neither the Quebec entertainment industry nor Quebec artists see the benefits made by resellers,” Jolin-Barrette said during a news conference in Quebec City on Tuesday.
“The companies behind these unfair practices are nothing more than parasites of Quebec culture.”
The new legislation says ticket resale platforms must come clean with a clear and prominent notice stating that it is a resale platform and that tickets may be available for less money from the official seller.
“Sometimes consumers buy tickets on a resale site and don’t even know it because they look like the official box office,” said Sara Eve Levac, an attorney for Options Consommateursa consumer advocacy group.
“There should be more transparency so people know exactly what kind of tickets they are buying.”
Consent is needed to inflate the price
Sites that combine primary and resale tickets must mark which tickets are resale at exactly the same time and in the same manner. And resellers must disclose several details. to the consumerincluding the exact seat, iIf applicable, and the name of the last person who owned the ticket.
Resale prices cannot exceed those of the official seller. original price unless explicitly authorized by the event producer – and the maximum resale price must be clearly revealed to the consumer before purchase. Charging any fee just for transferring a ticket to another person would be illegal.
If an event is canceled, producers must immediately notify official vendors and any authorized resellers of cancellations or changes, the bill states. of thatsellers and resellers must immediately transmit that information to ticket buyers.
Eve Levac said protections and rules already exist, but this bill is tightening them.
“We think there should be more transparency to let consumers know what type of tickets they are purchasing,” he said, noting that class action lawsuits have been filed against some resale sites for charging a higher price for tickets, but without making that clear.
Updated subscription renewal rules
The bill also makes it easier to cancel online subscriptions and gym memberships. For example, require a prominent one-click “cancel” button for any recurring contract terminable without cause.
Merchants must inform customers of any upcoming price increases at least two days and no more than 10 days before the end of a promotional pricing or introductory subscription period.
Eve Levac said unsubscribing should be as easy as subscribing, and customers should be clearly warned that their free trial period is ending. He said other jurisdictions, such as California, have also tightened rules around the practice.
But the bill also attacks cable and telecommunications companies. When a phone, Internet, or TV provider advertises “only $49.99 a month,” they should clearly display non-monthly fees (activation, modem rental, etc.) right next to that price, in the same size and prominence.
Companies would no longer be able to include clauses in contracts or terms of service that prohibit customers from posting honest reviews or comments. And if a merchant charges a fee that it cannot charge under the CPA, it must automatically refund it, even if the consumer used the service.
Most of the new rules are backed by fines, such as $750 for individuals and $1,500 for businesses for violating underwriting rules. It could be up to $175,000 for serious or repeated ticket resale violations, which are the existing CPA maximums.
Most of the bill would come into force three months after royal assent.
