Hamilton wants to stop stores from overcharging for bus tickets

It's currently legal for convenience store owners to sell Hamilton bus tickets at a premium in other words, mark up the priceso the store gets a take.

But next week, city councillors will likely vote to stop it.

City staff recommend a new transit bylaw that governs the sale of tickets by vendors. That includes outlawing the sale of tickets at more than their value.

Sam Merulla, Ward 4 councillor and chair of the public works committee, said he's on board.

It's legal, he said, but "it is a form of exploitation," particularly for people on lower incomes.

Jason Nason, a resident who runs the unofficial website hamiltontransit.ca and Twitter account @HSRTransit, also called it an "unfair practice."

"The city has set a fare for a ride on the bus," he said. "There are vendors who have a contract with the city, and that contract says they can't overcharge.

"The vendors who are not licensed are taking advantage of customers and often telling them that the price has gone up and keeping the profit.They are like ticket scalpers except instead of hockey tickets, it's bus tickets."

The city started looking into the practice after customers complained. Some vendors have been buying HSR tickets from authorized retailers and reselling them, city staff say.

Councillors talked about it in May and asked staff to look at ways to stop it. Staff suggest drawing up a draft bylaw and bringing it back to the council table in February.

Dave Bryan, president of the Ontario Convenience Stores Association, said he's unfamiliar with Hamilton's situation. But he added that store owners would never stay afloat if they sold products without making a profit. He hopes councillors consider that.

"We work in penny profits, not dollars, and the city of Hamilton should cherish a channel that is willing to offer bus tickets conveniently to riders but should also compensate us for helping them engage future riders," he said.

"Hopefully they will appreciate our services with the understanding that there are not many examples of handling a sale without compensation."

The city also used to print bus tickets without fares printed on them to accommodate fare increases. This year, it starting puttingthe price on the tickets. A paper ticket should $2.15 for HSR. Cash fare is $2.75.