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Federal court quashes cabinet order underlying single-use plastics ban – The Globe and Mail

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The new ruling involves a 2021 cabinet decision to list plastic manufactured items as toxic, which enabled a ban on six single-use plastics, including some straws.JONATHAN HAYWARD/The Canadian Press

A judge has ruled a federal decision labelling plastics as toxic to be unreasonable and unconstitutional, throwing Ottawa’s scheduled ban on the sale of single-use plastics such as checkout bags into doubt.

The ruling Thursday by Federal Court Justice Angela Furlanetto was the second major court decision in five weeks that determined federal environmental policy to be unconstitutional. Last month, the Supreme Court ruled that the 2019 Impact Assessment Act interfered with provincial jurisdiction, in giving Ottawa wide powers to regulate natural-resource projects.

The new ruling involves a 2021 cabinet decision to list plastic manufactured items as toxic, which enabled a ban on six single-use plastics, including cutlery and some straws, that are considered difficult to recycle. (The ban on manufacture and import of those items started last December and will be expanded to the sale of five of those items on Dec. 20.) The plastics industry, including Dow Chemical, Imperial Oil and Nova Chemicals, challenged the listing of all plastics as toxic, and Alberta and Saskatchewan intervened to argue that it was a federal overreach into provincial jurisdiction.

Under a 1997 Supreme Court ruling, Ottawa has the authority to regulate substances if they are deemed a danger to health and the environment. But Justice Furlanetto found that not all plastics constitute such a danger. The listing of plastic manufactured items (PMI) as a toxic substance therefore went beyond Ottawa’s power and was also unreasonable.

“The broad and all-encompassing nature of the category of PMI poses a threat to the balance of federalism as it does not restrict regulation to only those PMI that truly have the potential to cause harm to the environment,” Justice Furlanetto wrote.

Restaurants debut new takeout ware amid phase-in of single-use plastics ban

Stewart Elgie, a law professor and director of the Institute of the Environment at the University of Ottawa, said the court decision leaves it open to Ottawa to regulate all the plastic substances it is already regulating. “But they must do it through a regulation that specifically addresses those particular plastic products. They can’t list ALL types of plastic as toxic,” he said in an e-mail.

But for now, he said, Ottawa could keep regulating plastics by seeking a stay of the court’s ruling, while filing an appeal, or by issuing a temporary order to regulate those plastics, as allowed for under the Canadian Environmental Protection Act.

Justice Furlanetto’s ruling puts the ball squarely before Ottawa. For technical reasons, the listing of plastics as toxic still stands. The cabinet order being challenged in court was rescinded after the legal proceedings began, and a law passed by Parliament replaced it. (The law contains the same list of toxic substances.) The judge said the law was not before her and she therefore declined to rule it unconstitutional. But she left the door open to further legal arguments.

Environment and Climate Change Minister Steven Guilbeault said in a statement that the government is “strongly considering” an appeal.

“Canadians have been loud and clear that they want action to keep plastic out of our environment. The science is clear: plastic pollution is everywhere in our environment, harming wildlife and their habitats. There is also a growing body of evidence showing impacts on human health.”

Alberta applauded the ruling and urged Ottawa not to appeal.

Premier Danielle Smith and Environment and Protected Areas Minister Rebecca Schulz said the court reminded Ottawa that the provinces are “not subordinate to the federal government.” They added: “The federal government’s decision to unilaterally label perfectly safe plastic consumer products as ‘toxic’ has had wide-ranging consequences for Alberta’s economic interests and has put thousands of jobs and billions of investments at risk.”

The Saskatchewan government said in a statement: “We are pleased that the Federal Court considered the merits of this case and found in favour of Saskatchewan on this issue.”

The Responsible Plastic Use Coalition, an industry group that brought the legal challenge, said in a statement: “We believe that federal government and industry can work collaboratively to reduce plastic waste.”

Manjit Singh, a lawyer representing Animal Justice, an advocacy group that intervened in the case, said he is disappointed by the ruling. Plastic pollution is “pushing some species to the brink of extinction and at an individual level, it is causing unfathomable, unbearable harm – plastic rings suffocating animals to death.”

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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