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Family says Amazon shipped fake product, refuses refund until ‘correct’ item returned

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When Matthew Legault graduated from high school in June, his parents figured they’d recognize his hard work by buying the parts he needed to build his own personal computer.

They placed an order with Amazon and it arrived at their Calgary home quickly.

But when Matthew opened the graphics card — a $690 part — he discovered the plastic casing had been hollowed out and filled with a putty-like substance to give it weight.

“It was actually a bit of a shock,” he said. “Everything looked pretty official up to the point where I pulled it out and took a second look.”

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The real shock came, though, when Matthew’s father tried to get a refund.

François Legault followed Amazon’s return instructions and sent the item back, expecting a refund.

Instead, Amazon said in an email there would be no refund until the “correct” item was shipped back.

On top of that, the Amazon rep said the returned, fake item had been thrown out, to protect other employees.

“It was absurd,” said François. “It’s just a piece of plastic so I doubt there’s any danger to their employees. And secondly … now they’ve destroyed the piece of evidence.”

Amazon repeatedly claimed it had shipped the correct item.

Legault repeatedly explained he had received and returned “a complete fake” and attached photos to prove it.

Telling customers the item they’ve returned has been disposed of is a great way for Amazon to “end the conversation,” said marketing specialist Marc Gordon, who coaches both small companies and big-name multinationals on interacting with customers.

The fake graphic card, filled with a putty-like substance to provide weight, that Matthew says arrived from Amazon. (Submitted by François Legault)

But “that’s impacting the quality of service they provide.”

Service, Gordon says, may be affected as customers who flocked to the online retailer during the pandemic return to brick-and-mortar stores, forcing Amazon to re-organize.

“They don’t have the time or the resources to deal with every customer complaint, every inquiry, every problem,” said Gordon. “They want this done and they want to move on to something else.”

In an email, Amazon’s Canada spokesperson Ryma Boussoufa said: “Not every returned product can or may legally be resold or donated for hygienic or product safety reasons. In those cases, we will recycle products where possible.”

‘Slap in the face’

François says his history with Amazon should have stood for something — he’s been a loyal customer for years, and rarely returned anything.

“The box had obviously been tampered with,” he said. “We kind of expected that Amazon would have better quality controls, better procedures to ensure that something like this doesn’t happen.”

Amazon’s global profit growth slowed between 2020 and 2021. Industry experts estimate this trend will continue. (Chris Young/The Canadian Press)

“They’re basically saying that we’re trying to defraud them,” said François. “We’ve never had a pattern of returning things, or anything of that nature.”

An Amazon rep had, at one point, said the decision was final.

“That’s a little bit of a slap in the face,” said François. “They’re basically shutting this down and saying that there’s nothing else to discuss. And unfortunately, I beg to differ.”

After Go Public made inquiries, the company refunded François and apologized for taking almost five months to resolve the “unfortunate incident.”

Amazon reported global profits in 2020 of over $386 billion US, a 38 per cent increase over the previous year. It doubled its workforce between 2020 and 2021 and rapidly expanded.

But last year, growth was slower — a 22 per cent increase over 2020 — and growth for the current year is expected to be slower again, according to industry experts.

Matthew games on the personal computer he built with parts ordered from Amazon. The Legaults eventually bought its graphics card from a local store. (Colin Hall/CBC)

Last month, Amazon confirmed it would be laying off some 10,000 employees worldwide.

The returns customers make every day are a major expense for Amazon, Gordon says.

Online retailers in general lose an average of 21 per cent of a returned item’s original value — once costs for shipping, processing and restocking are factored in — according to a U.S.-based study by Pitney Bowes earlier this year.

Go Public asked what percentage of orders were returned last year, but Boussoufa wrote that the company doesn’t release that data “for reasons of commercial sensitivity.”

More returned products ‘disposed’

Go Public heard from more than half a dozen others who said they, too, were frustrated by Amazon’s policy of disposing returned items before a dispute was resolved.

Allan Papernick of St. Davids, Ont., ordered a $280 Citizen watch last April. But it was difficult to read the black hands on its black face, so he sent it back.

Amazon repeatedly told Papernick he had sent back an “older model” watch, which it had then discarded. It asked him to return the correct item.

“If I was scamming them, then let them send that item back to me,” he said. “Getting rid of it is a weird business practice, to say the least.”

He threatened to sue for $10,000 and received a full refund the next day.

Amazon did not answer when Go Public asked whether all outgoing packages are individually inspected to confirm the contents. But every returned item is carefully inspected “to accurately determine its condition,” according to Boussoufa, the spokesperson.

Other customers, like Justin Tabbert of Ottawa, say they will never again order from Amazon after similar, frustrating experiences.

 

Advice from a customer experience expert

Marc Gordon shares a tip to give consumers the upper hand when opening an Amazon package. 

He spent about $700 ordering RAM for his computer last April, but says his package had been opened and was missing half the order.

When he sent it back, Amazon complained it was “missing components.” It ended up resending the full order, but the issue’s still not resolved.

“Now they are saying they will charge me for another [order], because in their view, they’ve sent two,” said Tabbert.

Make an unboxing video

Gordon says Amazon’s tactic of insisting a customer return an item they say they don’t have is designed to put the onus back on the customer to fix the issue.

“The problem is, it doesn’t work,” said Gordon. “You just end up with a really irate customer who feels that they’ve been taken advantage of, or misled or screwed over.”

He says anyone worried about not being able to get a refund if an online order has problems, should make an unboxing video. Have someone grab their phone and film when a package is opened.

“If it’s exactly what they ordered, great, they can delete the video,” said Gordon. “If it is, in fact, something that’s been substituted or fake or fraudulent, well, it’s right there in the video. There’s no denying it.”

As for Matthew Legault, the high school grad is happy his computer is up and running — he uses it to play games with friends and is learning how to write computer code.

His father says the Amazon dispute has taught him something, too.

“This whole experience has really motivated me to shop local again,” said  François.

Amazon has “lost a lot of business from us.”

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New rules take effect to rein in short-term rentals, deliver more homes | BC Gov News – BC Gov News

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New short-term rental rules that will deliver more homes for people are set to come into effect on May 1, 2024, as the Province releases additional information to guide hosts, platforms and visitors through the changes.

“The effect of short-term rental apps like Airbnb, VRBO and others has been the loss of thousands of long-term rental homes in the midst of a housing crisis, driving up the cost of housing for British Columbians,” said Premier David Eby. “That’s why our government has created balanced new rules to crack down on speculators who are effectively operating mini hotels, while also ensuring homeowners can still rent out spaces in their principal residence. As we’ve already seen, these new rules are turning short-term rentals back into homes for people who live and work in our communities.”

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The new rules are aimed at reining in the growing short-term rental market that is taking homes off the market. Analysis from short-term rental data analytics company AirDNA, from March 2024, shows that more than 19,000 entire homes in B.C. are being listed as short-term rentals for the majority of a calendar year. Data from a McGill University professor about short-term rentals in B.C. also shows in June 2023 that the top 10% of hosts earn nearly half of all revenue.

“We are in a housing crisis that requires strong action to deliver more housing for the people who live and work in our communities,” said Ravi Kahlon, Minister of Housing. “The changes passed last fall to tackle the growing short-term rental challenges are already bringing more long-term homes back onto the market. As the rules for hosts and platforms come into effect, we are taking another strong step to deliver more long-term homes for people in communities throughout B.C.”

The new rules that will take effect May 1, 2024, are:

  • The Principal Residence Requirement, meaning short-term rentals can only be offered in the principal residence of a host, plus one additional unit, secondary suite or laneway home/garden suite on the property in communities where populations are greater than 10,000 people.
  • The Principal Residence Requirement will function as a provincewide floor for communities with populations of more than 10,000 people, but local governments will still be able to use existing bylaws and introduce additional bylaws that are more restrictive.
  • The Principal Residence Requirement will come into effect in more than 60 communities throughout B.C. 
  • Strata hotels and motels that have been operating in a manner similar to a hotel or motel before Dec. 8, 2023, and that meet select criteria moving forward, will be exempt from the Principal Residence Requirement.
  • Non-conforming use of property will no longer apply to short-term rentals. Under previous legal non-conforming use protections, if an existing use of land or a building did not conform to the new bylaw, it would have generally continued with legal non-conforming use. 
  • Short-term rental hosts will be required to display a valid business licence number on their listing, where a business licence is required by a local government.
  • Short-term rental platforms will be required to share data with the Province.
  • Local governments can request that a platform remove listings that do not display a valid business licence.

In addition to the short-term rental rules going into effect, 17 communities initially exempt from the legislation have requested to opt in to the Principal Residence Requirement. For those communities, the new short-term rental rules will take effect on Nov. 1, 2024. A full list is included in Backgrounder 2.

A first-of-its-kind in Canada, the short-term rental data portal has been created to support local governments with monitoring and enforcement of short-term rental regulations and will allow local governments to have the platform companies remove listings that do not comply.

The Provincial Short-Term Rental Compliance Enforcement Unit, which will be phased in beginning May 1, will also be able to conduct investigations into alleged non-compliance, which may result in administrative monetary penalties and compliance orders. Administrative penalties for hosts breaking the rules can range from $500 to $5,000 a day per infraction, and up to $10,000 per day for corporations, depending on the infraction. Visitors and guests will not face any fines. The unit will also facilitate data sharing and requests to platforms to remove listings.

Visitors with stays booked after May 1, 2024, at short-term rentals are encouraged to check with their host directly to confirm the host is complying with their local government regulations and with B.C.’s new short-term rental rules.

Full requirements for hosts and platforms to comply with the new rules have also been released and are available in Backgrounder 1 and here: https://www2.gov.bc.ca/gov/content/housing-tenancy/short-term-rentals

Turning more short-term rentals into long-term homes is part of the Province’s Homes for People action plan. Announced in spring 2023, it sets out further actions to deliver the homes people need faster, while creating more vibrant communities throughout B.C.

Quotes:

Walt Judas, CEO, Tourism Industry Association of British Columbia (TIABC) –

“TIABC applauds the government for listening to the tourism sector and introducing regulations that will address housing shortages in visitor-dependent communities and give municipalities the tools they need to manage short-term rentals. From our perspective, the Province has found the right balance to provide more permanent homes for workers in tourism and other sectors, while also ensuring a range of accommodation options for visitors.”

Ken Sim, mayor of Vancouver –

“These short-term rental rules are vital in tackling the housing crisis not just in Vancouver, but across British Columbia. We’re eager to implement these new tools and collaborate with platforms to ensure short-term rentals in Vancouver align with these regulations. These measures lay the groundwork for a more sustainable and equitable housing landscape where Vancouver residents can thrive.” 

Learn More:

To learn more about the rules that take effect May 1, 2024, visit: www.gov.bc.ca/ShortTermRentals

To learn more about government’s Homes for People action plan, visit: https://news.gov.bc.ca/releases/2023HOUS0019-000436

To learn about the steps the Province is taking to tackle the housing crisis and deliver affordable homes for British Columbians, visit: https://strongerbc.gov.bc.ca/housing

Two backgrounders follow.  

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Gas prices surge in some parts of Canada. What’s causing pain at the pumps? – Global News

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A sharp uptick in gas prices is fuelling road rage in some parts of Canada on Thursday.

Many motorists filling up at the pumps are facing higher prices — some up as much as 22 cents from yesterday in parts of Ontario, for instance.

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Data from GasBuddy’s live gas price tracker shows prices were 10.9 cents higher across Ontario for an average of $1.73 per litre by 4 p.m. Eastern Thursday, as compared to the previous day’s average.

Prices for gas rose by a similar degree in Toronto, but in southwest Ontario towns such as Sarnia, GasBuddy says the cost of gasoline has jumped 22.3 cents to $1.79 per litre as of 4 p.m. Other Ontario municipalities near the U.S. border such as Chatham and Windsor also saw double-digit jumps in the price of gas.

Ontario Premier Doug Ford shared his frustrations about the gas price hike on Thursday. Analysts had predicted prices would rise overnight due to a changeover to summer gasoline blends from winter fuel.


Click to play video: 'Gas prices jumps 14 cents per litre overnight in Ontario, Quebec'

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Gas prices jumps 14 cents per litre overnight in Ontario, Quebec


“You go out last night and you’re sitting there for 20 minutes in the line up to get gas, you know, and it’s unacceptable. Everywhere I was going, it was about a buck, 59. You wake up this morning and it’s $1.80. You know, it’s absolutely disgusting,” Ford said during an appearance in Oakville, Ont.

Quebec drivers were also seeing prices rise on Thursday, with a hike of 7.5 cents taking the province’s average cost past $1.80 a litre, according to the gas data. Montreal gas prices hit an average of $1.88 per litre as of 4 p.m., an 8.9-cent hike from Wednesday.


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“Of course it will have an impact on our budget. So for normal people, regular people, families, it’s going to be tough,” Montreal Mayor Valérie Plante said Wednesday ahead of the price surge.

Gas prices in British Columbia were meanwhile inching towards the $2 per litre mark, rising 1.4 cents to an average of $1.95 as of 4 p.m. Eastern.

Prices were also a few cents higher in Newfoundland and Labrador and New Brunswick on Thursday, but were largely steady in the other Atlantic provinces and in the Prairies.

Dan McTeague, president of Canadians for Affordable Energy, told Global News that Western Canada and some U.S. markets made the switch from winter to summer gasoline about a month ago. Those regions are tied to the Chicago comprehensive prices while most of Ontario’s prices are tied to what happens in the New York Harbour, which switched to the summer blend on April 16, he said.

Winter gas is cheaper than summer blends because it contains higher butane levels — an inexpensive but volatile element which lowers the cost of fuel, Patrick de Haan, head of petroleum analysis at GasBuddy, told The Canadian Press.

The cost of producing summer gas is higher because butane levels are reduced to meet Canadian environmental regulations and lower emissions.

Where do gas prices go from here?

On a national basis, the price of gas was on average $1.74 per litre as of 4 p.m. Eastern. That’s up 6.5 cents from Wednesday and 18.7 cents higher than the average in March, according to GasBuddy.

De Haan said Thursday that pump prices are expected to come down in July.

McTeague told Global News that where gas prices go from here depends in part on volatility in the Middle East, where attacks on any given day can send shocks into the global price of oil.

He said it’s unlikely for Ontario to hit $2/litre this summer, but those prices may be in the cards for Quebec. In much of Western Canada, “what you see is what you get,” with prices expected to hold around current levels, he said.

But for those who missed out on fuelling up before the overnight spike, McTeague also predicted gas prices would drop back another five cents in Ontario and Quebec on Friday.

Statistics Canada cited higher gas prices as fuelling a slight uptick in inflation last month, which accelerated to 2.9 per cent annually from 2.8 per cent in February. Prices were rising at a faster rate in Western Canada in March, StatCan noted.

Higher global crude oil prices are traced to geopolitical conflicts stymying production, the agency said earlier this week.


Click to play video: '‘Virtually zero chance’ of seeing gas cost $1 per litre in Canada again: report'

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‘Virtually zero chance’ of seeing gas cost $1 per litre in Canada again: report


De Haan told Global News earlier this month that geopolitical strife like Russia’s war on Ukraine, more expensive summer gas, increased demand for summer travel and maintenance at refineries would keep prices elevated.

“It’s becoming more obvious that with every yearly increase, it’s becoming less and less likely that we would see a sub-dollar-a-litre-price,” De Haan told Global News.

Canada’s price on carbon also rose earlier this month, rising $15 to $80 a tonne in provinces that have adopted the federal regime. The hike was expected to add about three cents to the cost of gasoline for Canadians.

This past Monday, some Canadians living in provinces with the federal carbon price received the first quarterly rebate tied to the program.

– with files from Global News’ Jacquelyn LeBel, Gabby Rodrigues, Nathaniel Dove, Aaron D’Andrea, Kalina Laframboise and The Canadian Press

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BC short-term rental rules take effect May 1 – CityNews Vancouver

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Premier David Eby says that as B.C. inches closer to new short-term rental rules taking effect, 17 communities have decided to opt into the restrictions.

The update comes as the regulations surrounding how many and what kinds of short-term rentals are allowed in B.C. come into effect on May 1.

The BC NDP tabled the legislation in October of last year which, once in effect, aims to return short-term rentals to the long-term rental market.

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As of May 1, the province is requiring short-term rental platforms, like Airbnb and VRBO, to share data and to remove listings without business licenses and registration numbers “quickly.”

It is also limiting short-term rentals to a property owner’s principal residence — plus one additional unit or suite on that property — for municipalities with more than 10,000 people. Municipalities with fewer than 10,000 people, or those designated as resort municipalities, will be able to opt into the legislation.

Those communities that have opted in, like the resort municipality of Tofino, will see the new laws come into effect on Nov. 1. Some other communities that have agreed to the new rules are Kent, Gabriola Island, Bowen Island, Osoyoos, and Pemberton.

The province says through regulations, the fines for hosts breaking municipal by-law rules will increase to $3,000 from $1,000, per infraction, per day.

“Short-term rentals themselves are not the problem,” Eby said in the update Thursday. “What has been the problem is inadequate oversight over this sector. And a group of people who have … said I’d like to actually buy up a whole bunch of homes that would otherwise be rented by people, or what other otherwise be purchased by families looking for a place to live, and I’d like to operate a private hotel chain through Airbnb or VRBO.”

“To give you a sense of the scale of the problem we face in British Columbia with this kind of activity [from] this small group of individuals, we have 19,000 entire homes in our province that are available year-round on short-term rental platforms,” he continued.

“And I can tell you that there are 19,000 families and individuals that are looking for a place to live, to buy, to rent right now, that are in competition with people that are looking to operate homes as hotels.”

Data from McGill University released in 2023 showed that the top 10 per cent of hosts in B.C. earn nearly half of all revenue created.

Eby added that, starting Thursday, a portal will be available for people to report operators for going against the new rules, and also giving hosts a platform to check their requirements of operation.

“These rules balance the need for long-term homes, including people and tourism and hospitality industry where the need to accommodate guests. As the premier mentioned, people are seeing long-term homes open up for rent, and more short-term rentals are being listed for sale or becoming long-term homes for families and individuals,” Housing Minister Ravi Kahlon said.

The province reiterated Thursday that short-term rentals are still “welcomed” in B.C., as long as they operate within provincial and local rules.

“We encourage people to continue to explore beautiful British Columbia and stay in legal short-term rental accommodations. We want guests, hosts, local governments, and platforms to know what to expect May 1,” Kahlon added.

Short-term rentals create big economic impacts: Airbnb

In a statement Thursday, Airbnb claimed a newly released economic analysis shows it generated more than $2.5 billion “in economic impact across BC in 2023,” and supported more than 25,000 jobs in the province.

“The analysis shows that for every $100 spent on an Airbnb stay, guests spent an additional $229 on other goods and services such as local businesses, restaurants, attractions, shops, and more,” the short-term rental agency said.

Airbnb believes the new “strict” short-term rental laws are “putting at risk billions in tourism spending and economic benefits.”

“BC’s new short-term rental law is going to significantly impact the province’s tourism sector, just as peak tourism season arrives – taking extra income away from residents, limiting accommodation options for guests, and potentially putting at risk billions in tourism spending and economic impact,” said Nathan Rotman, Airbnb Canada policy lead in the statement.

“At a time when BC is facing record deficits and economic growth is slowing, these new rules hurt resident hosts, tourists, communities and the economy as a whole.”

Airbnb is also contributing to tax revenue in the province, the agency claimed, explaining, “British Columbian Hosts on the platform generated approximately $93 million in taxes in 2023, bringing much-needed tax revenue for a province that’s projected to face a record high $7.9 billion deficit.”

You can watch CityNews 24/7 live or listen live to CityNews 1130 to keep up to date with this story. You can also subscribe to breaking news alerts sent directly to your inbox.

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