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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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Bad traffic, changed plans: Toronto braces for uncertainty of its Taylor Swift Era

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TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?

It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.

Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.

And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.

Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.

Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.

Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.

“Something as simple as getting together and having dinner is now thrown out the window,” he said.

Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.

“Her coming into town has kind of changed up my social life,” he added.

“We’re pretty much just not doing anything.”

Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.

“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.

“We’re a hybrid company, so we can be flexible. It just makes sense.”

Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.

In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.

“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.

Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.

“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.

Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.

Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.

“There may be some who will say we’re over-preparing, and that’s fair,” Green said.

“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”

Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.

A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.

“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.

Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.

“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.

“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”

This report by The Canadian Press was first published Nov. 13, 2024.



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‘It’s literally incredible’: Swifties line up for merch ahead of Toronto concerts

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TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.

Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.

Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.

Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.

Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.

“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”

The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.

Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.

“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.

Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.

The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.

Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.

Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.

But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.

Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.

“It’s literally incredible.”

This report by The Canadian Press was first published Nov. 13, 2024.

The Canadian Press. All rights reserved.



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Via Rail seeks judicial review on CN’s speed restrictions

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OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.

The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.

It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.

CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.

The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.

Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.

This report by The Canadian Press was first published Nov. 13, 2024.

Companies in this story: (TSX:CN)

The Canadian Press. All rights reserved.



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