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Provinces promised crackdown on pandemic price gouging. In fact, there have been few repercussions – CBC.ca

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Within weeks of the coronavirus pandemic being declared, one premier after another made tough promises to stop price gouging on essential products. Yet, CBC’s Marketplace has learned that despite tens of thousands of reported complaints, little legal action has been taken across the country.

Marketplace reached out to all provinces and territories and was told consumer complaints to government only led to one business being charged. It’s unclear how many, if any, charges were laid by local bylaw officers. 

A business in Alberta selling personal protective equipment at high prices — $39 for hand sanitizer and $120 for masks — was issued multiple written warnings and orders to lower prices before being formally charged by Service Alberta with failing to comply with a director’s order under the Consumer Protection Act. The company pleaded guilty in September and was fined $1,500. 

This, despite tough talk from a number of premiers.

“We’ve put in place restrictions on price gouging,” B.C. Premier John Horgan announced in May.

“We’re gonna go after you, and throw the book at you,” Alberta Premier Jason Kenney said in April.

“You’re done, you’re gone…. If you’re convicted, you could face … a year in jail,” Ontario Premier Doug Ford said in March. 

Every province, aside from Quebec and New Brunswick, has a law prohibiting price gouging. But these laws simply state sellers cannot sell goods for prices that “grossly” exceed market prices. There is no federal, provincial or territorial law in Canada limiting price markups on consumer goods during a state of emergency. 

Many U.S. states have such legislation. For example, in California, product and service prices cannot increase by more than 10 per cent once an emergency is declared. Kansas limits price increases to 25 per cent.

Provinces confirmed that the majority of price-gouging complaints received were about personal protective equipment and other essential products like disinfecting wipes, toilet paper and paper towels. 

Data gathered by Statistics Canada for Marketplace shows that the price of disinfecting wipes, hand sanitizer and toilet paper had reached higher-than-average prices during the pandemic. 

WATCH | What happened to the promised crackdown on pandemic price gouging?

Canadians have been complaining for months about pandemic-driven price gouging for all kinds of essentials, from hand sanitizer to toilet paper, but Marketplace discovered there’s been hardly any legal action taken by the government despite a promised crackdown. 2:00

April saw the largest price spikes for toilet paper, the product that made headlines around the world when people started hoarding it. Prices averaged $9.41 for 12 rolls. The price has since returned back to normal averages, around $6.70. 

The average price of hand sanitizer shot up in May, nearly $3 more than in previous years. June showed the price of hand sanitizer lowering, but still higher than average. 

Since March, the average price of 35 disinfecting wipes has been higher than $3. Prior to March, the price averaged around $2.43 per pack.

No charges in Ontario investigations

Ontario received the highest number of price-gouging complaints — about 29,500 — after a campaign to promote the province’s price-gouging hotline. 

  • Watch Marketplace Fridays at 8:00 p.m., 8:30 p.m. NT, or stream any time on CBC Gem

To date, Ontario has referred around 900 of those complaints to law enforcement. Marketplace reached out to all police services the province said it forwarded complaints to. Each service confirmed no charges had been laid. 

Alberta and B.C., which received the most complaints after Ontario, as well as Ontario would not confirm the criteria to refer complaints for further investigation by law enforcement or special task forces.

In a statement, Ontario said revealing that benchmark could compromise investigations. Alberta and B.C. cited the difficulty in determining what is actually price gouging and what is a reasonable cost change due to the current market.

Premiers John Horgan, Doug Ford and Jason Kenney made big promises to fight price gouging during the pandemic, but enforcement agencies say few fines have been issued. (The Canadian Press)

Enforcement agencies told Marketplace that most complaints were either unfounded, or resulted in a warning to the business, which then lowered the price on the products in question. 

In written statements to Marketplace, both Alberta and B.C.’s consumer protection agencies wrote that the priority is educating and advising businesses to encourage voluntary compliance. This would also avert a needless months-long investigation, Alberta’s Ministry of Service wrote.

Ontario also said it sent out 1,650 notification letters to businesses, and is taking “decisive action” against retailers that charge excessive prices. 

Manufacturer says price of some hand sanitizers ‘obscene’

Paul Kowdrysh, president and CEO at Protair-X Solutions Group, a hand sanitizer manufacturer, said that he’s had to increase his prices by about 23 per cent due to rising costs. This lowered his profit margin, he said.

“I don’t think, in a time of need and a time of crisis, that you need to make the same margin you’ve made in the past,” he said.

Marketplace showed Kowdrysh multiple hand sanitizers for sale during the pandemic. 

Kowdrysh called a 500 ml bottle for sale from a Guardian Pharmacy for $19.99 “obscene.”

Marketplace found one of the most expensive hand sanitizers on Walmart.ca – $18.99 for 70ml. Comparing costs per litre of all products, that translates to $271.29/litre compared to average costs of $29.44/litre in Canada in May 2020. (Wendy Martinez/CBC)

“That’s extremely expensive for that size of product,” he said. Guardian Pharmacy told Marketplace the price was a result of scarcity at the time. 

Kowdrysh’s own prices were inflated at a Nations in Toronto — one litre selling for $34.99. 

“I am very surprised,” he said. “That’s unacceptable as far as I’m concerned.” 

Kowdrysh told Marketplace he subsequently stopped selling to the distributor that he said over-priced his products.

Marketplace reached out to Nations about selling his product at such a markup, and the company said the higher prices were a result of products being difficult to acquire, and to maintain profit margins. 

Paper towel price hikes

Statistics Canada confirmed that in April 2020, the average price of a package of six paper towel rolls increased to its highest price — $9.54 — since at least January 2017, when the average price was $5.69.

In April, paper towel shelves across Canada were bare as consumers scrambled to stock up. After crunching numbers for Marketplace, Statistics Canada confirmed paper towel prices were the highest they’d been in recent years. (Bobby Hristova/CBC)

For small businesses, those increases could be detrimental. 

Saga, a tattoo artist based in Calgary who goes by only one name, could be paying thousands of dollars more annually for paper towels alone. 

“I do a lot of colour tattoos, really large tattoos,” said Saga. “So in a day, sometimes I can use three, sometimes six full rolls of paper towels.” 

Heather Ashley, who shops for Saga’s supplies, told Marketplace that she’s had to shop around a lot more. “One day I actually had to go to three separate stores,” she said. “The exact same amount of paper towels … a six-pack … ranged from $6.99 upwards to $16.99.” 

Mendoza, owner of Grapevine Tattoo in Vancouver who also is known only by one name, has concerns about price increases on products too. Just before the pandemic he was purchasing masks for his artists at pennies per mask. When Marketplace spoke with him in May, prices sat at around a dollar per mask. 

Mendoza estimates that the increased costs in masks, hand sanitizer, plexiglass and other pandemic essentials will add $10,000 to $20,000 to his annual operating costs. 

“It costs more for everybody to do their job,” he said. “It’s been definitely a big shock to the system.”

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Looking for the next mystery bestseller? This crime bookstore can solve the case

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WINNIPEG – Some 250 coloured tacks pepper a large-scale world map among bookshelves at Whodunit Mystery Bookstore.

Estonia, Finland, Japan and even Fenwick, Ont., have pins representing places outside Winnipeg where someone has ordered a page-turner from the independent bookstore that specializes in mystery and crime fiction novels.

For 30 years, the store has been offering fans of Agatha Christie’s Hercule Poirot or Arthur Conan Doyle’s Sherlock Holmes a place to get lost in whodunits both old and new.

Jack and Wendy Bumsted bought the shop in the Crescentwood neighbourhood in 2007 from another pair of mystery lovers.

The married couple had been longtime customers of the store. Wendy Bumsted grew up reading Perry Mason novels while her husband was a historian with vast knowledge of the crime fiction genre.

At the time, Jack Bumsted was retiring from teaching at the University of Manitoba when he was looking for his next venture.

“The bookstore came up and we bought it, I think, within a week,” Wendy Bumsted said in an interview.

“It never didn’t seem like a good idea.”

In the years since the Bumsteds took ownership, the family has witnessed the decline in mail-order books, the introduction of online retailers, a relocation to a new space next to the original, a pandemic and the death of beloved co-owner Jack Bumsted in 2020.

But with all the changes that come with owning a small business, customers continue to trust their next mystery fix will come from one of the shelves at Whodunit.

Many still request to be called about books from specific authors, or want to be notified if a new book follows their favourite format. Some arrive at the shop like clockwork each week hoping to get suggestions from Wendy Bumsted or her son on the next big hit.

“She has really excellent instincts on what we should be getting and what we should be promoting,” Micheal Bumsted said of his mother.

Wendy Bumsted suggested the store stock “Thursday Murder Club,” the debut novel from British television host Richard Osman, before it became a bestseller. They ordered more copies than other bookstores in Canada knowing it had the potential to be a hit, said Michael Bumsted.

The store houses more than 18,000 new and used novels. That’s not including the boxes of books that sit in Wendy Bumsted’s tiny office, or the packages that take up space on some of the only available seating there, waiting to be added to the inventory.

Just as the genre has evolved, so has the Bumsteds’ willingness to welcome other subjects on their shelves — despite some pushback from loyal customers and initially the Bumsted patriarch.

For years, Jack Bumsted refused to sell anything outside the crime fiction genre, including his own published books. Instead, he would send potential buyers to another store, but would offer to sign the books if they came back with them.

Wendy Bumsted said that eventually changed in his later years.

Now, about 15 per cent of the store’s stock is of other genres, such as romance or children’s books.

The COVID-19 pandemic forced them to look at expanding their selection, as some customers turned to buying books through the store’s website, which is set up to allow purchasers to get anything from the publishers the Bumsteds have contracts with.

In 2019, the store sold fewer than 100 books online. That number jumped to more than 3,000 in 2020, as retailers had to deal with pandemic lockdowns.

After years of running a successful mail-order business, the store was able to quickly adapt when it had to temporarily shut its doors, said Michael Bumsted.

“We were not a store…that had to figure out how to get books to people when they weren’t here.”

He added being a community bookstore with a niche has helped the family stay in business when other retailers have struggled. Part of that has included building lasting relationships.

“Some people have put it in their wills that their books will come to us,” said Wendy Bumsted.

Some of those collections have included tips on traveling through Asia in the early 2000s or the history of Australian cricket.

Micheal Bumsted said they’ve had to learn to be patient with selling some of these more obscure titles, but eventually the time comes for them to find a new home.

“One of the great things about physical books is that they can be there for you when you are ready for them.”

This report by The Canadian Press was first published on Sept. 15, 2024.



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Labour Minister praises Air Canada, pilots union for avoiding disruptive strike

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MONTREAL – Canada’s labour minister is praising both Air Canada and the union representing about 5,200 of its pilots for averting a work stoppage that would have disrupted travel for hundreds of thousands of passengers.

Steven MacKinnon’s comments came in a statement shared to social media shortly after Canada’s largest air carrier announced it had reached a tentative labour deal with the Air Line Pilots Association.

MacKinnon thanked both sides and federal mediators, saying the airline and its pilots approached negotiations with “seriousness and a resolve to get a deal.”

The tentative agreement averts a strike or lockout that could have begun as early as Wednesday for Air Canada and Air Canada Rouge, with flight cancellations expected before then.

The airline now says flights will continue as normal while union members vote on the tentative four-year contract.

Air Canada had called on the federal government to intervene in the dispute, but Prime Minister Justin Trudeau said Friday that would only happen if it became clear no negotiated agreement was possible.

This report from The Canadian Press was first published Sept. 15, 2024.

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As plant-based milk becomes more popular, brands look for new ways to compete

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When it comes to plant-based alternatives, Canadians have never had so many options — and nowhere is that choice more abundantly clear than in the milk section of the dairy aisle.

To meet growing demand, companies are investing in new products and technology to keep up with consumer tastes and differentiate themselves from all the other players on the shelf.

“The product mix has just expanded so fast,” said Liza Amlani, co-founder of the Retail Strategy Group.

She said younger generations in particular are driving growth in the plant-based market as they are consuming less dairy and meat.

Commercial sales of dairy milk have been weakening for years, according to research firm Mintel, likely in part because of the rise of plant-based alternatives — even though many Canadians still drink dairy.

The No. 1 reason people opt for plant-based milk is because they see it as healthier than dairy, said Joel Gregoire, Mintel’s associate director for food and drink.

“Plant-based milk, the one thing about it — it’s not new. It’s been around for quite some time. It’s pretty established,” said Gregoire.

Because of that, it serves as an “entry point” for many consumers interested in plant-based alternatives to animal products, he said.

Plant-based milk consumption is expected to continue growing in the coming years, according to Mintel research, with more options available than ever and more consumers opting for a diet that includes both dairy and non-dairy milk.

A 2023 report by Ernst & Young for Protein Industries Canada projected that the plant-based dairy market will reach US$51.3 billion in 2035, at a compound annual growth rate of 9.5 per cent.

Because of this growth opportunity, even well-established dairy or plant-based companies are stepping up their game.

It’s been more than three decades since Saint-Hyacinthe, Que.-based Natura first launched a line of soy beverages. Over the years, the company has rolled out new products to meet rising demand, and earlier this year launched a line of oat beverages that it says are the only ones with a stamp of approval from Celiac Canada.

Competition is tough, said owner and founder Nick Feldman — especially from large American brands, which have the money to ensure their products hit shelves across the country.

Natura has kept growing, though, with a focus on using organic ingredients and localized production from raw materials.

“We’re maybe not appealing to the mass market, but we’re appealing to the natural consumer, to the organic consumer,” Feldman said.

Amlani said brands are increasingly advertising the simplicity of their ingredient lists. She’s also noticing more companies offering different kinds of products, such as coffee creamers.

Companies are also looking to stand out through eye-catching packaging and marketing, added Amlani, and by competing on price.

Besides all the companies competing for shelf space, there are many different kinds of plant-based milk consumers can choose from, such as almond, soy, oat, rice, hazelnut, macadamia, pea, coconut and hemp.

However, one alternative in particular has enjoyed a recent, rapid ascendance in popularity.

“I would say oat is the big up-and-coming product,” said Feldman.

Mintel’s report found the share of Canadians who say they buy oat milk has quadrupled between 2019 and 2023 (though almond is still the most popular).

“There seems to be a very nice marriage of coffee and oat milk,” said Feldman. “The flavour combination is excellent, better than any other non-dairy alternative.”

The beverage’s surge in popularity in cafés is a big part of why it’s ascending so quickly, said Gregoire — its texture and ability to froth makes it a good alternative for lattes and cappuccinos.

It’s also a good example of companies making a strong “use case” for yet another new entrant in a competitive market, he said.

Amid the long-standing brands and new entrants, there’s another — perhaps unexpected — group of players that has been increasingly investing in plant-based milk alternatives: dairy companies.

For example, Danone has owned the Silk and So Delicious brands since an acquisition in 2014, and long-standing U.S. dairy company HP Hood LLC launched Planet Oat in 2018.

Lactalis Canada also recently converted its facility in Sudbury, Ont., to manufacture its new plant-based Enjoy! brand, with beverages made from oats, almonds and hazelnuts.

“As an organization, we obviously follow consumer trends, and have seen the amount of interest in plant-based products, particularly fluid beverages,” said Mark Taylor, president and CEO of Lactalis Canada, whose parent company Lactalis is the largest dairy products company in the world.

The facility was a milk processing plant for six decades, until Lactalis Canada began renovating it in 2022. It now manufactures not only the new brand, but also the company’s existing Sensational Soy brand, and is the company’s first dedicated plant-based facility.

“We’re predominantly a dairy company, and we’ll always predominantly be a dairy company, but we see these products as complementary,” said Taylor.

It makes sense that major dairy companies want to get in on plant-based milk, said Gregoire. The dairy business is large — a “cash cow,” if you will — but not really growing, while plant-based products are seeing a boom.

“If I’m looking for avenues of growth, I don’t want to be left behind,” he said.

Gregoire said there’s a potential for consumers to get confused with so many options, which is why it’s so important for brands to find a way to differentiate themselves, whether it’s with taste, health, or how well the drink froths for a latte.

Competition in a more crowded market is challenging, but Taylor believes it results in better products for consumers.

“It keeps you sharp, and it forces you to be really good at what you’re doing. It drives innovation,” he said.

This report by The Canadian Press was first published Sept. 15, 2024.



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