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Cineplex ordered to pay $38.9M by Competition Tribunal in ticket fee case

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TORONTO – Cineplex Inc. says it will appeal a record $38.9 million fine for deceptive marketing practices imposed by the Competition Tribunal.

The fine was embedded in a decision the tribunal issued late Monday that saw it side with the Competition Bureau in a case stretching back to May 2023. That was when the watchdog accused Cineplex of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online.

“The consumer is deceived or led astray by the contradictory and incomplete information on Cineplex’s tickets page, which obfuscates the existence and quantum of the online booking fee,” the tribunal said in a two-page information outlining its decision.

The online booking fee it referred to is a $1.50 charge Cineplex began including in June 2022 to many customers not enrolled in its CineClub subscription and Scene Plus loyalty programs, which saw the fee waived and dropped to $1, respectively.

The bureau alleged the fee constituted “price dripping,” a practice when customers are drawn into a purchase without full disclosure of the final cost.

Cineplex, however, vehemently denied the accusations, saying moviegoers are promptly told about fees they may face and can avoid them all together by purchasing seats in-person at a theatre.

Cineplex maintained that view on Monday, after the release of the tribunal’s ruling.

The company said in a statement it was “shocked” by the decision and pointed out that online booking fees are presented on its website and app “in a clear and prominent manner.”

“We believe our guests make informed purchase decisions and remain confident our online booking fee is presented in a way that fully complies with the spirit and letter of the law,” Cineplex said.

The $38.9 million fine Cineplex has now been handed is equivalent to the amount it collected from consumers through the $1.50 online booking fee between June 2022 and December 2023.

On top of the fine, the tribunal ordered Cineplex not to engage in the same conduct that prompted the case for a period of 10 years.

While the Competition Bureau did not immediately respond to a request for comment about Cineplex’s announcement that it would appeal the ruling, the head of the bureau earlier on Monday evening called the tribunal’s decision “a resounding win for Canadians.”

“It sends a strong message that businesses should not engage in drip pricing and need to display their full prices upfront,” Competition commissioner Matthew Boswell said in a statement.

“Businesses that fail to comply with the law risk significant financial penalties.”

Boswell and the bureau’s case was helped along by June 2022 amendments to the Competition Act designed to recognize drip pricing as a harmful business practice.

The tribunal says it expects to detail the full reasons behind its decision and order next week, once the organization has worked with Boswell and Cineplex to identify “confidential or competitively sensitive information” that must be redacted.

This report by The Canadian Press was first published Sept. 23, 2024.

Companies in this story: (TSX:CGX)

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Tyreek Hill’s traffic stop can be a reminder of drivers’ constitutional rights

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WASHINGTON (AP) — American drivers might universally wince or brace themselves at the sight and sound of flashing red and blue lights and blaring sirens, but all drivers have constitutional rights when pulled over on the road.

The question of one’s responsibility to comply with all instructions given by a law enforcement officer recently came up following a pregame traffic stop this month involving Miami Dolphins wide receiver Tyreek Hill.

Although Hill has acknowledged he could have handled the interaction with Miami-Dade police better, the video of him being pulled out of his car, placed on the ground and handcuffed revived a national conversation about the realities of “driving while Black.” Studies show Black motorists are more likely to face the threat or use of force by police in traffic stops, like Hill did, and many Black families give a version of “the talk” to loved ones about how to interact with police officers.

“The immediate short-term goal is to get out of the encounter without being arrested, and the way to do that, again, is to communicate not just with compliance, but obedience and respect, even if you don’t think that that’s deserved,” said Georgetown University law professor Paul Butler.

Black people are disproportionately stopped, data shows

Studies show people of color are often disproportionately targeted for traffic stops in the U.S., said Jenn Rolnick Borchetta, the American Civil Liberties Union’s deputy director on policing.

“They search them more often, even as the rate at which they find evidence of some wrong is lower for Black and Latino people than white people,” she said.

In 2022, Black people accounted for nearly 13% of traffic stops in California, even though they were only 5% of the state’s population. Minneapolis, a predominantly white city, found in 2020 that Black drivers accounted for nearly 80% of police searches and routine traffic stops.

Being combative with traffic officers can invite unwanted scrutiny

Miami lawyer E.J. Hubbs said he believes both Hill and the police officers in the now-viral video of the arrest had faults in their interactions.

Body camera footage showed the officer asking Hill to roll down his window and Hill complying, Hubbs said. Hill then told the officer “to give me my ticket,” after handing him his identification, which Hubbs said was also fair.

Where things escalated was when Hill decided to roll his window back up, as the officer’s body camera footage shows.

“When Mr. Hill refused to roll down his window, that was not complying with one of his commands,” Hubbs said. “And when he was asked to exit the car, he didn’t comply with that command, at least immediately.”

Lawrence Hunter, a former Waterbury, Connecticut, police captain and law enforcement coach, added that Hill appeared confrontational when asking Miami-Dade County officers not to knock on his window.

“From that point, because of the combative nature that Tyreek Hill exposed, the officer then asked him to get out of the car,” Hunter said. “That’s an officer safety thing. He already feels that this is uncooperative. … So therefore, it is best to just get him out of the car.”

Hunter added that Hill’s refusal to keep his window down could be considered a matter of officer safety.

Drivers have rights against self-incrimination and vehicle searches

During a traffic stop, drivers have constitutional rights against incriminating themselves or permitting the search of their car.

The right to remain silent is the most widely known right, Borchetta said. Drivers also have the Fourth Amendment right to be free from unreasonable searches and seizure, and have the right to ask traffic officers questions.

“You don’t have to tell the police where you’re coming from or where you’re going,” Borchetta said. “If they ask to search you or your car, you can say no. And if you’re not sure whether they’re asking or telling, you can ask them that question. And they have to tell you honestly.”

Passengers can also ask if they can leave the scene of the traffic stop.

Police can ask drivers to step out of their vehicles

Once a driver has been pulled over, police will likely run the plates of the vehicle through a database to check whether the car has been stolen or see if any other actionable information comes up, said Hunter, the former police captain.

The officer may also take a long, hard look at the vehicle for visible contraband, weapons or drugs, he said.

The officer does have the right to ask drivers and passengers to get out of the car and can use reasonable force to make sure that happens. Officers can also pull drivers over even if they haven’t committed an infraction, as long as there’s reasonable suspicion to think the person has, according to Butler, the Georgetown University professor. This policing practice is known as a pretextual stop.

Law enforcement can sometimes take advantage of civilians’ lack of knowledge of the law, Butler added. In that case, it’s best to comply and communicate with officers, and complain later.

Drivers can also record the conversation if they feel like the interaction with the officer has been unnecessarily escalated. But they should be sure to let the officer know that they are being recorded. Asking for and writing down the officer’s badge number, time and location of the interaction is also permitted.

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HandyDART workers in Metro Vancouver voted to ratify new deal with TransDev

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VANCOUVER – The union representing HandyDART workers in Metro Vancouver has voted to ratify a new collective bargaining agreement with TransDev.

Amalgamated Transit Union Local 1724 voted Monday to ratify the deal, which it says includes increased wages for workers.

About 600 HandyDART employees started strike action in early September, pausing service except for essential medical trips.

ATU Local 1724 President Joe McCann says the strike showed the power of the union, and ratifying the contract is great for union members. The union also says the new contract with TransDev pushes back on the use of taxis through creative language on shift scheduling and reporting. Transdev is the contracted operator of HandyDART, which serves people who are unable to navigate the conventional transit system.

This report by The Canadian Press was first published Sept. 24, 2024.

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Boost in home renos is helping drive up housing values in major markets: report

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TORONTO – A new report says a boost in spending on home renovations during the pandemic has helped contribute to higher prices for single-family homes despite downward market pressure.

The report by Re/Max Canada looked at the evolution of housing stock and trends affecting home values in the Toronto and Vancouver areas, Canada’s two largest real estate markets.

The report, released Tuesday, said national renovation spending increased by an estimated $300 billion between 2019 and 2023, led by home renewal and revitalization projects in the Toronto and Vancouver markets.

That marked an eight per cent jump from the previous five-year period.

The report said revitalization “remains one of the most underestimated factors behind escalating housing values.”

“The landscape is changing as a staggering amount of money is funnelled into renovation while infill is redefining neighbourhoods, particularly in areas where the value of existing structures has not kept pace with increasing land values,” said the report.

In urban planning, infill refers to building on underutilized land within existing areas that are largely developed.

“Case in point are wartime bungalows and smaller two-storey homes that continue to be primary targets, making way for custom builds that transform working-class neighbourhoods into up-and-coming hot pockets.”

Re/Max Canada president Christopher Alexander said renovation and revitalization projects are significantly affecting housing supply and affordability.

“With all available tracts of land in the city committed to high-density construction, the single-detached home is quickly becoming a unicorn,” said Alexander in a press release.

“Existing homeowners who can’t find what they want in the market will buy an older home in an area of their choice and renovate or build their vision. We expect this trend will strengthen in the years to come and serve to drive price growth in single-detached housing even further.”

During the same 2019-2023 period, the value of residential building permits issued for single-family dwellings in the Toronto and Vancouver areas sat at just over $27 billion, according to Statistics Canada data cited by the report.

That was down almost 24 per cent from the previous five-year period, when more than $33.7 billion worth of residential building permits were issued in the single-family category.

The report said the renovation and infill trend is unsurprising given close to 30 per cent of the existing housing stock in the Greater Toronto Area and an estimated 20 per cent in Vancouver was constructed in 1960 or earlier.

But it noted the cost to rehabilitate older homes with unpredictable issues can quickly go over budget.

“The push to make the best use of scarce land has homeowners and builders striving to maximize square footage or increase density on individual building lots in traditional urban neighbourhoods,” the report said.

This report by The Canadian Press was first published Sept. 24, 2024.

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