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WestJet sparks customer fury after refusing refunds for cancelled flights — again – CBC.ca

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WestJet has once again sparked customer fury after the airline cancelled several flights in July and told passengers they weren’t entitled to refunds. 

“It’s unacceptable,” said Shanie Couture.

With COVID-19 restrictions easing, the Quebec City woman booked her family of four on a round-trip flight from Montreal to Edmonton, departing July 24.

But almost two weeks later, WestJet cancelled the flight and rebooked the family on a new flight, which now included a stopover in Toronto each way.

Couture only wanted a direct flight, as she was travelling with two young children and had to drive more than 260 kilometres from Quebec City to get to the Montreal airport. 

“This is my one-year-old’s first time flying. I wanted to make it easier for them by taking only one flight,” said Couture. “So I wasn’t going to drive that distance to then have two flights to deal with.”

When she called WestJet and requested a refund for the $1,768 she spent on tickets, Couture said an employee refused her request, telling her she could only get a credit for a future flight. 

Couture unhappily accepted the credit, and spent an additional $2,369 to rebook her family on a preferable flight with another airline.

“I was very disappointed,” she said. “I work in customer service. If I can’t fulfil something for a customer, I give them a refund. I don’t give them a store credit. That’s not how it works.”

Shanie Couture is shown with her husband, Rock Leclerc, five-year-old daughter, Katherine, and one-year-old son, Nicolas. (Submitted by Shanie Couture)

CBC News interviewed four WestJet customers who each had booked flights to different destinations, all departing in July. In each case, WestJet cancelled their direct flight in mid-June and rebooked the customer on a longer flight that now included a stopover. In two cases, the new flights departed on different dates. 

Each passenger said they requested a refund — but were only offered a credit. 

Three out of the four passengers wound up rebooking with another airline, essentially paying twice for their tickets.

And there are dozens of similar customer complaints concerning WestJet flight changes posted on social media. 

In an email inquiry to WestJet, CBC News pointed out that Canada’s Air Passenger Protection Regulations (APPR) suggest the customers interviewed were entitled to refunds.

Under the federal rules, airlines must offer refunds for flights cancelled for reasons within their control, as well as offer to rebook passengers on another airline if it can’t find an alternative flight leaving within nine hours of the original departure.

Following several back-and-forth emails, WestJet responded that it had reviewed the customers’ cases and determined they deserved refunds, which the airline said it would now provide. 

“We apologize for the inconvenience and are reviewing our processes to make necessary improvements,” said WestJet spokesperson Morgan Bell in an email.

It shouldn’t be so difficult for passengers to get a refund they are entitled to, said Ian Jack, a spokesperson with Canadian Automobile Association (CAA), a non-profit that serves Canadian travellers.

“You should treat your customers right,” he said. “That clearly didn’t happen in this case until some extra pressure was applied.”

‘Putting people first’

Last year, after the pandemic dropped most air travel to a halt, WestJet and several other airlines faced criticism for refusing to provide refunds for cancelled flights. 

But by October 2020, WestJet changed its tune and became the first national Canadian airline to announce it would provide refunds for flights cancelled due to the pandemic.

“We are an airline that has built its reputation on putting people first,” WestJet president and CEO Ed Sims said in a statement at that time. 

That wasn’t the message Seema Shirali, of Markham, Ont., said she received when WestJet cancelled a direct flight she booked for herself and her husband, from Toronto to New York City, for July 30.

Seema Shirali was upset after WestJet cancelled her direct Toronto-to-New York flight, only offering a credit when she requested a refund. The alternative offered would’ve added 4.5 hours to her trip. (submitted by Seema Shirali)

The airline rebooked the couple on flights with a stopover in Atlanta, adding almost 4.5 hours to what was originally a 2.5-hour trip. On top of that, Shirali’s husband was booked to fly home one day earlier than his original return date.

That meant his four-day trip to visit the couple’s daughter would last only three days.

“The problem was that he has very little time,” said Shirali. “I was really upset.”

WestJet refused to give her a refund, she said, so she begrudgingly accepted a $502 credit for the couple’s departing flight, as well as her husband’s return flight and rebooked them with another airline — at an additional cost of $707. 

“Now we have credits and money locked up,” said Shirali. “What if this happens again? Like, do I really want to use WestJet again?”

‘Unpredictable demand’ during COVID

When CBC News first contacted WestJet last week about its recent spate of flight cancellations, the airline made no mention of offering refunds.

WestJet had to make flight adjustments “to accommodate unpredictable and inconsistent demand trends that are being influenced by changing [government] travel policies and guidance,” said Bell.

She added that the airline was “doing our best to resolve complaints.”

The federal government says it will soon ease restrictions for fully vaccinated Canadians and permanent residents returning from international travel. 2:14

WestJet didn’t specify if it deemed the flight adjustments as outside of its control, due to the pandemic. 

Consumer advocate Jack argues that, at this point, the move is a controllable business decision.

“The airlines have had months to figure out how to manage under these circumstances, to understand what their [passenger] loads tend to be.”

CBC News outlined to WestJet the airline’s pledge to refund pandemic-related cancellations, the APPR rules on refunds for flights within an airline’s control, as well as U.S. Department of Transportation regulations mandating that airlines flying to and from the United States provide refunds for cancelled flights — no matter what the reason.

Two out of the four customers interviewed were booked on flights to the U.S. 

Bell responded that WestJet had determined the four customers did indeed deserve refunds, but didn’t provide the reasons behind the decision. 

As for Couture, she said a WestJet agent contacted her Thursday evening to start the refund process. 

“If they really do reimburse me I’ll be really happy. It’s just — it’s sad that it took this to get reimbursed.”

The Canadian Transportation Agency (CTA) said it has received complaints involving this matter and is monitoring the situation. Two customers CBC News interviewed had filed complaints with the CTA. 

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Canada Goose to get into eyewear through deal with Marchon

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TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.

The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.

The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.

Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.

Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.

Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:GOOS)

The Canadian Press. All rights reserved.

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A timeline of events in the bread price-fixing scandal

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Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.

Here’s a timeline of key events in the bread price-fixing case.

Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.

Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.

Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.

Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).

Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.

June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.

Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”

Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.

July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.

Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)

The Canadian Press. All rights reserved.

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TD CEO to retire next year, takes responsibility for money laundering failures

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TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.

Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.

The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.

As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.

TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.

TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.

This report by The Canadian Press was first published Sept. 19, 2024.

Companies in this story: (TSX:TD)

The Canadian Press. All rights reserved.

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