OTTAWA --
Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
The agency said Tuesday gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
However, Statistics Canada said its initial flash estimate points to growth of three per cent in May. The estimate will be revised and finalized at the end of July.
Economists on average expect a drop of 13 per cent for April, according to financial markets data firm Refinitiv.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19 -- a move that hit the automotive sector hard as the output of motor vehicles plunged 97.7 per cent.
Even sectors that had increases in March weren't spared in April like food manufacturing, which dropped 12.8 per cent in April as outbreaks at meat processing plants forced them to shut down.
The accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.
Output from bars and restaurants in particular plunged 40.8 per cent as local and provincial states of emergency forced their closure, or limited operations to take-out and delivery.
Accommodation services fell 45.7 per cent, Statistics Canada says, owing to restrictions on travel between provincial and international borders.
And then there was sports.
As COVID-19 iced the National Hockey League season and put the National Basketball Association, Major League Baseball and Major League Soccer on the sidelines, the arts and entertainment sector declined 25.6 per cent, further affecting companies in the accommodation and food services sectors.
Down too was construction by 22.9 per cent, concentrated largely in Ontario and Quebec, while a similar decline was noted in retail trade as brick-and-mortar stores stayed closed and consumers spent less while staying at home.
Poring through the data, Statistics Canada noted a jump in output of 17.3 per cent from online shopping as households shifted their shopping habits.
The silver lining in the horrible April numbers may be that it marked the bottom of this short but extremely deep recession, CIBC chief economist Avery Shenfeld said.
In a note, he wrote that the flash estimate for May is roughly half of what was expected, but the rebound may be more robust in June with more economic reopenings taking place.
"But thereafter, repairing the rest of the March and April wreckage will be a slower process, as recent COVID-19 flare ups here and elsewhere are showing the hazards of moving too far ahead of the virus," he wrote.
"Markets were expecting the April news, and we can't tell if the flash estimate for May will be treated as a disappointment."
This report by The Canadian Press was first published June 30, 2020.
As Canada's two largest airlines move to end so-called seat distancing, travellers have mixed feelings about stepping on board an aircraft in the age of COVID-19.
Starting on Canada Day, Air Canada and WestJet will resume the sale of adjacent seats, which they had largely blocked to help prevent viral spread.
Canada's public health officer has expressed reservations about the practice, though it is permitted under federal transportation rules.
"We really feel it is important to avoid the close physical contact as much as possible. And if not, wear the medical mask," Dr. Theresa Tam said Monday. Masks or face coverings have been mandatory on flights since April 20.
Even so, "there are some difficult decisions for travellers, for sure," Tam added, saying individuals should assess their own risk levels and need to fly.
WATCH | Tam questioned about airlines ending physical distancing in cabins:
Dr Theresa Tam, Canada's chief public health officer, spoke with the CBC's Ashley Burke on Monday. 2:13
Karen Kabiri took his first plane trip in five years on Monday after learning his mother had died in Iran the day before — just 20 days after his father.
"It's very, very hard for us. That's why I'm going there right now, to help my sister," said Kabiri, 44.
The piano teacher from Toronto, who stopped over in Montreal before continuing on to Tehran via Qatar to help with funeral arrangements, spent several hours outside the terminal at Trudeau airport with his other sister, who lives in the area but could not make the trip. Enduring a light drizzle, the siblings adhered to Transport Canada rules that prevent anyone but staff and passengers from entering airports.
Kabiri said he had concerns about stepping into a packed cabin, though he credited Air Canada for providing all passengers with a mask, gloves, disinfectant wipes and a water bottle.
"It's a little bit scary for everybody. You can see many people are affected by COVID-19," he said. "It's very hard for everybody in these situations to travel. But sometimes an emergency is happening."
Claire Parois and her five-year-old daughter climbed aboard a Monday flight bound for her home country of France to join her parents after receiving approval to continue telecommuting until late August.
"We decided to spend the rest of the summer at my parents' house where I don't have to do the full-time parenting and full-time working at the same time, which I've been doing in the past 15 or 16 weeks," said Parois, who works for the United Nations in Montreal. "It's been really, really, really challenging.
"My main concern would be to get infected and then infect my parents. Otherwise I'm not too worried," she said.
With Canada's border still closed to nearly all non-residents, international travel has barely budged since dropping by more than 95 per cent year over year in April.
However, domestic travel is expected to edge up in the coming weeks and months as interprovincial restrictions loosen and the economy continues to reopen.
Anthony Morgan, who works on a Great Lakes bulk carrier, said he has a harder time with pandemic protocols on the water than in the sky. Until Monday, the 39-year-old wheelsman hadn't stepped off the boat in three months.
"It's like almost pulling your head off and bootin' it over the side," he said of being confined to the freighter.
"But flying home I definitely don't feel like I got any concerns."
Morgan took off Monday for St. John's and plans to spend his month of downtime close to home in his outport community near the provincial capital. That includes two weeks of self-isolation after landing.
The sudden return of middle-seat sales is not unique to Canadian carriers.
Michelline Nesrallah said there was no distancing on her packed Qatar Airways flight back to Canada.
"There was no temperature screening when we got into the Qatari airport," added the 39-year-old teacher who moved back to Ottawa this week after spending most of the past 14 years in the Gulf state.
"People aren't really taking it as seriously as they should," she said. "I was standing at the baggage counter and this woman was literally touching me with her arm. And I said, 'Sister, you have to stand back.'"
Transport Canada listed physical distancing among the "key points" in preventing the spread of the virus, part of a guide it issued to the aviation industry in April.
"Operators should develop guidance for spacing passengers aboard aircraft when possible to optimize social distancing," the document states.
Some health experts have highlighted the risks of spreading COVID in crowded airports and sardine-tin cabins.
"Once it's in the cabin, it's difficult to stop air moving around," Tim Sly, an epidemiologist and professor emeritus at Ryerson University's School of Public Health, said in a recent interview.
However Joseph Allen, director of the Harvard public health school's Healthy Buildings program, has said the HEPA air filters used on most planes effectively control airborne bacteria and viruses.
In line with federal directives, Air Canada and WestJet conduct pre-boarding temperature checks and require masks on board.
Both airlines also implemented enhanced aircraft cleaning and scaled back their in-flight service in late March, cutting out hot drinks, hot meals and fresh food.
OTTAWA --
Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
The agency said Tuesday gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
However, Statistics Canada said its initial flash estimate points to growth of three per cent in May. The estimate will be revised and finalized at the end of July.
Economists on average expect a drop of 13 per cent for April, according to financial markets data firm Refinitiv.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19 -- a move that hit the automotive sector hard as the output of motor vehicles plunged 97.7 per cent.
Even sectors that had increases in March weren't spared in April like food manufacturing, which dropped 12.8 per cent in April as outbreaks at meat processing plants forced them to shut down.
The accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.
Output from bars and restaurants in particular plunged 40.8 per cent as local and provincial states of emergency forced their closure, or limited operations to take-out and delivery.
Accommodation services fell 45.7 per cent, Statistics Canada says, owing to restrictions on travel between provincial and international borders.
And then there was sports.
As COVID-19 iced the National Hockey League season and put the National Basketball Association, Major League Baseball and Major League Soccer on the sidelines, the arts and entertainment sector declined 25.6 per cent, further affecting companies in the accommodation and food services sectors.
Down too was construction by 22.9 per cent, concentrated largely in Ontario and Quebec, while a similar decline was noted in retail trade as brick-and-mortar stores stayed closed and consumers spent less while staying at home.
Poring through the data, Statistics Canada noted a jump in output of 17.3 per cent from online shopping as households shifted their shopping habits.
The silver lining in the horrible April numbers may be that it marked the bottom of this short but extremely deep recession, CIBC chief economist Avery Shenfeld said.
In a note, he wrote that the flash estimate for May is roughly half of what was expected, but the rebound may be more robust in June with more economic reopenings taking place.
"But thereafter, repairing the rest of the March and April wreckage will be a slower process, as recent COVID-19 flare ups here and elsewhere are showing the hazards of moving too far ahead of the virus," he wrote.
"Markets were expecting the April news, and we can't tell if the flash estimate for May will be treated as a disappointment."
This report by The Canadian Press was first published June 30, 2020.
What a difference three months makes. The S&P/TSX Composite Index surged 15.97 per cent in the second quarter after a disastrous start to the year, making Toronto’s benchmark stock exchange the 21st best performer among 92 global equity markets, sandwiched between the Euro Stoxx 50 and Ireland. It was the largest quarterly rally since mid-2009, when global markets were exiting the depths of the great financial crisis.
The strength exhibited by the TSX was widespread, with 10 of the 11 TSX subgroups capping off the quarter in positive territory, and 194 of the composite’s 222 individual constituents ending Q2 in the green.
In spite of the gains, the TSX remains 13.54 per cent below its all-time closing high of February 20th, 2020.
The monster rally wasn’t enough to keep pace with indices south of the border, with the S&P 500’s 19.95 per cent gain ranking it ninth in the world, and the Dow Jones Industrial Average’s 17.77 per cent gain placing it 11th. It was the strongest quarter for each index since 1998. Those returns, however, were dwarfed by Argentina’s Merval Index, which took the top spot with a 58.65 per cent gain.
Below, BNN Bloomberg takes stock of the quarter that was on the TSX.
Top Gainers:
Information Technology: +68.20 per cent Materials: +41.56 per cent Consumer Discretionary: +32.01 per cent
The information technology sector continued to be the star performer on the TSX for 2020 with a massive 68 per cent rally in Q2 after a largely flat performance to start the year. Canada’s latest tech darling Shopify Inc. led the way for the group, but the second quarter was far from a one-man show, with all 10 of the subgroup’s constituents finishing in positive territory.
The materials group tracked gold higher as the precious metal breached the US$1,800 mark for the first time since 2011, helping to drive the 41.56 per cent return. Precious metals miners dominated the upper ranks of lead gainers, with OceanaGold Corp., Alacer Gold Corp. and Pan American Silver Corp. all notching triple-digit gains. Though gold was grabbing the headlines through the quarter, base metals miners quietly posted stellar returns of their own, in part due to the nearly 22 per cent rally in the price of copper. In all, only two of the subgroup’s 51 members finished the quarter lower.
The TSX’s most motley group of companies posted the third-best performance of the quarter, with consumer discretionary gaining 32 per cent. The group, which includes autoparts makers, Tim Hortons’ parent company and a casino operator among its ranks, saw all 13 members end the quarter higher, led by recreational-vehicle manufacturer BRP Inc., toymaker Spin Master Corp. and Sleep Country Canada Holdings.
Top Gainers:
BRP Inc.: +152.18 per cent OceanaGold Corp.: +134.07 per cent MEG Energy: + 125.75 per cent Cenovus Energy: + 123.59 per cent Shopify Inc.: +118.75 per cent
Shares of BRP Inc. soared in the quarter, gaining more than 150 per cent amid rising demand for its side-by-side offroad vehicles. The company has seen a surge in interest in those offroad vehicles as Canadians are expected to eschew overseas vacations in favour of socially-distanced outdoor activities closer to home, including taking to the trails. In spite of the near-term demand, BRP is expecting revenue to fall as much as 20 per cent into the second half of the year.
OceanaGold Corp. was among the many beneficiaries of the rising price of gold, helping shares more than double through Q2. The company reported all-in sustaining cost per ounce of US$1,218 in its fiscal first quarter, well below the US$1,800 level gold is currently trading at. Oceana, which has operations in New Zealand, the Philippines and the United States, is forecasting higher production and lower all-in sustaining costs in the second half of the year.
The rebound in global oil prices lifted shares of MEG Energy and Cenovus through the second quarter, leading to a more than doubling in share prices of the companies. MEG, which is traditionally highly-sensitive to even modest fluctuations in the price of the underlying commodity, was a choppy ride for investors, regularly posting double-digit moves in a single day.
Tech darling Shopify rounded out the top five, posting a triple-digit return in a quarter that briefly saw it overtake Royal Bank of Canada as the largest publicly-traded company in Canada. The ecommerce platform provider has been seen as one of the winners from the pandemic-induced shutdown of swaths of the domestic economy and subsequent shift to more online shopping. Shopify also inked a deal with Walmart earlier in the Spring to help the big-box behemoth build out its third-party marketplace.
Worst performers:
Communications Services: -2.15 per cent Utilities: +2.69 per cent Financials: +4.85 per cent
Communications services was the only subgroup to finish the quarter in negative territory, posting a modest two per cent decline, though much of the blame can be pinned on a single stock: Cineplex Inc. The group, which is a relatively small slice of the overall index at 5.8 per cent, was nearly evenly split between winners and losers in the quarter, with three of its eight constituents finishing in positive territory.
The utilities group was essentially flat in Q2, garnering little in the way of investor interest. Many of the members of the group are highly regulated and carry long-term fixed contract rates, meaning short-term fluctuations in the underlying economic picture often have little impact on the rates they can charge customers.
The financials index rounded out the bottom three with a modest 4.8 per cent gain. Concerns over the near-term trajectory of domestic economic growth kept a lid on returns from the big banks, though all of the Big Five financial institutions save Bank of Nova Scotia finished in positive territory. Wealth management firm IGM Financial Inc., Toronto stock exchange operator TMX Group Ltd. and mortgage lender Home Capital Group Inc. were the top performers in the subgroup.
Top Losers:
Cineplex Inc.: -31.28 per cent Sienna Senior Living Inc.: -24.43 per cent Dream Office Real Estate Investment Trust: -12.08 per cent Nutrien Ltd.: -9.33 per cent Loblaw Companies Ltd.: -8.88 per cent Allied Properties Real Estate Investment Trust: -8.45 per cent
The hits keep coming for Cineplex Inc. The nation’s dominant theatre operator was forced to shutter its theatres in the second quarter as health officials looked to stem the spread of the COVID-19 virus, leading to a plunge in revenue and a warning over its ability to continue as a going concern. The company also saw its $2.15-billion deal to sell itself to U.K.-based Cineworld Group PLC collapse after the British movie theatre operator claimed Cineplex breached the terms of the deal, helping to drive shares of Cineplex to an all-time low. The company is looking to reopen some theatres with social distancing rules in effect in the coming months, but may face a dearth of content to offer theatregoers as many film distribution houses have pushed out the timing of their blockbuster releases into the end of the year.
Sienna Senior Living Inc. was caught in the maelstrom of the COVID-19 virus, with the long-term care home operator being one of the hardest hit by the virus outbreak. The company operated one of the facilities where Canadian Armed Forces were sent to bolster care efforts for seniors in the depths of the crisis. Former President and Chief Executive Officer Lois Cormack abruptly resigned from her post on June 12th, and was replaced by the company’s CFO Nitin Jain.
Concerns over the long-term impact of the current work-from-home regime pressured shares of Dream Office REIT and Allied Properties in the second quarter. The office REIT sector has been dogged by questions over whether companies will return to their normal course of operations after a number of firms, including Shopify, declared that once the pandemic has passed they have no intention of returning to the status quo in terms of the number of workers in the office.
Ontario Lottery and Gaming Corporation (OLG) has reopened its prize centre. The building has been closed to the public since March 17, when the province declared a state of emergency over COVID-19. Since then, at least 130 ticket holders with wins of $50,000 or more have been waiting to collect their prizes in person. One of those winners is a Goulais River resident, who is the lucky winner of the $1 million Lotto 6/49 draw. OLG released the following release:
Thomas Mitchell of Goulais River has that “6/49 feeling” after winning the Guaranteed $1 Million Prize in the March 14, 2020 LOTTO 6/49 draw.
The OLG Prize Centre in Toronto has resumed in-person prize claims for winning-ticket holders of $50,000 or more by-appointment only. To best protect customers and staff, OLG has put in place appropriate health and safety protocols in accordance with guidelines from public health officials, which include physical distancing measures, the mandatory use of personal protective equipment (PPE) and the pre-screening of visitors before granting entry.
Currently, OLG is reaching out to major prize winners ($50,000+) who have been unable to claim their prizes due to COVID-19 to schedule appointments for in-person prize claims. Future announcements will be made as to when OLG will open appointments to others wishing to claim their prize in-person at the Prize Centre.
LOTTO 6/49 players in Ontario have won over $13 billion in prizes since 1982, including 1,392 jackpot wins and 335 Guaranteed $1 Million Prize draws. LOTTO 6/49 is $3 per play and draws take place on Wednesdays and Saturdays.
The winning ticket was purchased at The Goulais River Country Store on Highway 17 in Goulais River.
Air Canada is indefinitely suspending 30 domestic regional routes and closing eight stations at regional airports across Canada.
The Montreal-based airline says the cuts are being made because of continuing weak demand for both business and leisure travel due to COVID-19 travel restrictions and border closures.
The routes being cancelled are:
In Atlantic Canada: Deer Lake-Goose Bay, Deer Lake-St. John's, Fredericton-Halifax, Fredericton-Ottawa, Moncton-Halifax, Saint John-Halifax, Charlottetown-Halifax, Moncton-Ottawa, Gander-Goose Bay, Gander-St. John's, Bathurst-Montreal, Wabush-Goose Bay, Wabush-Sept-Iles, Goose Bay-St. John's.
More than two thirds of the routes being cancelled and all eight of the regional stations are operated by Jazz Aviation, a partner of Air Canada.
"I am saddened by the impact today's announcement will have on our employees, suppliers and the affected communities, but respect and understand the difficult choice our partner, Air Canada, has had to make," said Joe Randell, CEO of Chorus Aviation, which owns and operates Jazz.
Air Canada says it expects the airline industry will not recover from the damage incurred by COVID-19 for three years at least, and makes it clear that Tuesday's route cancellations may not be the end of any drastic steps that may be taken.
"Other changes to ... network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate," the airline said.
Air Canada says system-wide capacity was down about 85 per cent in the second quarter compared with the same quarter last year, and the airline expects capacity in the third quarter to be down 75 per cent compared with the third quarter of 2019.
The airline lost more than $1 billion in the first quarter, and burned through $688 million in cash in March alone.
Air Canada is indefinitely suspending service on 30 domestic regional routes and closing eight stations at regional airports across the country.
The airline says the cuts are being made as a result of continuing weak demand for both business and leisure travel due to COVID-19 travel restrictions and border closures.
The routes being cancelled are:
In Atlantic Canada: Deer Lake-Goose Bay, Deer Lake-St. John's, Fredericton-Halifax, Fredericton-Ottawa, Moncton-Halifax, Saint John-Halifax, Charlottetown-Halifax, Moncton-Ottawa, Gander-Goose Bay, Gander-St. John's, Bathurst-Montreal, Wabush-Goose Bay, Wabush-Sept-Iles, Goose Bay-St. John's.
More than two thirds of the routes being cancelled and all eight of the regional stations are operated by Jazz Aviation, a partner of Air Canada.
"I am saddened by the impact today's announcement will have on our employees, suppliers and the affected communities, but respect and understand the difficult choice our partner, Air Canada, has had to make," said Joe Randell, CEO of Chorus Aviation, which owns and operates Jazz.
Air Canada also says other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks.
Air Canada says system-wide capacity was down about 85 per cent in the second quarter compared with the same quarter last year, and the airline expects capacity in the third quarter to be down 75 per cent compared with the third quarter of 2019.
TORONTO --
Air Canada is indefinitely suspending dozens of domestic flight routes as the airline struggles to fill seats during the COVID-19 pandemic.
The airline announced Tuesday that it would end service to eight domestic cities and cancel 30 regional routes due to weak demand for both business and leisure travel in the midst of government-imposed travel restrictions and border closures.
In a statement, Air Canada said it expects the airline industry will take a minimum of three years to recover from the effects of the pandemic.
“As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate,” the company said.
Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net loss of $688 million in March alone.
Earlier this month, Air Canada CEO Calin Rovinescu was one of more than 130 signatories to an open letter calling on Prime Minister Justin Trudeau and the country’s premiers to loosen travel restrictions as the industry struggles to stay afloat.
In May, Air Canada predicted it would lose nearly $20 million per day in the second quarter as a result of pandemic border shutdowns. In response, the airline has reduced its workforce by approximately 20,000 employees, representing more than 50 per cent of its staff, through layoffs, severances, early retirements, and special leaves.
Here is a list of the Air Canada routes that will be suspended indefinitely. The airline said they will contact affected customers and offer them options, such as alternative routings where available.
TORONTO --
Air Canada is indefinitely suspending dozens of domestic flight routes as the airline struggles to fill seats during the COVID-19 pandemic.
The airline announced Tuesday that it would end service to eight domestic cities and cancel 30 regional routes due to weak demand for both business and leisure travel in the midst of government-imposed travel restrictions and border closures.
In a statement, Air Canada said it expects the airline industry will take a minimum of three years to recover from the effects of the pandemic.
“As a consequence, other changes to its network and schedule, as well as further service suspensions, will be considered over the coming weeks as the airline takes steps to decisively reduce its overall cost structure and cash burn rate,” the company said.
Air Canada reported a net loss of $1.05 billion in the first quarter of 2020, including a net loss of $688 million in March alone.
Earlier this month, Air Canada CEO Calin Rovinescu was one of more than 130 signatories to an open letter calling on Prime Minister Justin Trudeau and the country’s premiers to loosen travel restrictions as the industry struggles to stay afloat.
In May, Air Canada predicted it would lose nearly $20 million per day in the second quarter as a result of pandemic border shutdowns. In response, the airline furloughed nearly 20,000 of its employees.
Here is a list of the Air Canada routes that will be suspended indefinitely. The airline said they will contact affected customers and offer them options, such as alternative routings where available.
OTTAWA --
Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
The agency said Tuesday gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
However, Statistics Canada said its initial flash estimate points to growth of three per cent in May. The estimate will be revised and finalized at the end of July.
Economists on average expect a drop of 13 per cent for April, according to financial markets data firm Refinitiv.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19 -- a move that hit the automotive sector hard as the output of motor vehicles plunged 97.7 per cent.
Even sectors that had increases in March weren't spared in April like food manufacturing, which dropped 12.8 per cent in April as outbreaks at meat processing plants forced them to shut down.
The accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.
Output from bars and restaurants in particular plunged 40.8 per cent as local and provincial states of emergency forced their closure, or limited operations to take-out and delivery.
Accommodation services fell 45.7 per cent, Statistics Canada says, owing to restrictions on travel between provincial and international borders.
And then there was sports.
As COVID-19 iced the National Hockey League season and put the National Basketball Association, Major League Baseball and Major League Soccer on the sidelines, the arts and entertainment sector declined 25.6 per cent, further affecting companies in the accommodation and food services sectors.
Down too was construction by 22.9 per cent, concentrated largely in Ontario and Quebec, while a similar decline was noted in retail trade as brick-and-mortar stores stayed closed and consumers spent less while staying at home.
Poring through the data, Statistics Canada noted a jump in output of 17.3 per cent from online shopping as households shifted their shopping habits.
The silver lining in the horrible April numbers may be that it marked the bottom of this short but extremely deep recession, CIBC chief economist Avery Shenfeld said.
In a note, he wrote that the flash estimate for May is roughly half of what was expected, but the rebound may be more robust in June with more economic reopenings taking place.
"But thereafter, repairing the rest of the March and April wreckage will be a slower process, as recent COVID-19 flare ups here and elsewhere are showing the hazards of moving too far ahead of the virus," he wrote.
"Markets were expecting the April news, and we can't tell if the flash estimate for May will be treated as a disappointment."
This report by The Canadian Press was first published June 30, 2020.
Billions of dollars of its market value has disappeared and its chief executive officer has been bumped down a notch in his place among the world's wealthiest.
But despite these big losses, Facebook is unlikely to suffer significant damage from the growing ad boycott over its policies to prohibit hate speech in its advertisements, say some marketing experts.
Indeed, some of the companies, depending on their size, could be hurting themselves more by limiting their exposure on the social media giant, suggest some industry experts.
"A few brands pulling their Facebook ads for a month will have little to no bearing on Facebook's bottom line," Mari Smith, co-author of Facebook Marketing: An Hour A Day, said in an email to CBC News.
And if small and medium businesses cut their ads altogether, even for one month, this could cause a massive loss of revenue for those business owners, Smith said.
"Joining the ad boycott would actually hurt their bottom line infinitely more than it would Facebook's," she said.
Coca-Cola, Starbucks are pulling ads
So far, a number of small- and medium-sized business, along with major corporations, including Verizon, Unilever, Starbucks, Best Buy, Coca-Cola, and The North Face, have said they will pull their ads from Facebook for the month of July. Canadian companies Lululemon, MEC and Arc'teryx have also joined the boycott.
WATCH | Canadian companies join Facebook ad boycott:
Several Canadian companies, including Vancouver-based Lululemon Athletica Inc. and Mountain Equipment Co-op, are joining a chorus of businesses calling on Facebook to do more to combat hate speech on its platform. 5:10
Their actions are a response to the StopHateForProfit boycott led by civil rights and advocacy groups, including the Anti-Defamation League and National Association for the Advancement of Coloured People. The groups claim Facebook has not done enough to keep racist, false and dangerous content off its platform and allowed users to call for violence against protesters fighting for racial justice in the wake of the deaths of several Black Americans.
Facebook CEO Mark Zuckerberg has said the company will change its policies to prohibit hate speech in its advertisements. Under the company's new policies, Facebook will ban ads that claim people from a specific race, ethnicity, nationality, caste, gender, sexual orientation or immigration origin are a threat to the physical safety or health of anyone else.
Still, the boycott doesn't seem to be letting up. Facebook's stock slid by more than eight per cent on Friday, erasing $56 billion US from its market value. Zuckerberg is estimated to have lost more than $7 billion of his personal net worth, and was also knocked down from third place to fourth on the Bloomberg Billionaires Index.
But those that have joined the boycott represent just a small fraction of Facebook's advertisers and revenue.
"To affect real, significant change with Facebook's content moderating rules and all related issues, probably thousands of major brands would have to pull their ad budget for a month or more. Most likely, major brands are just not going to do that when it impacts their own bottom line," Smith said.
The top 100 advertisers on Facebook platform represent only six per cent of their total ad revenue, said Beth Ellen Egan, an associate professor of advertising at Syracuse University.
Biggest advertisers haven't joined boycott
Roughly eight million companies of all sizes advertise on the social media platform, and some of the biggest advertisers, including Walmart, Disney and Procter & Gamble, have not joined the boycott.
"They're not taking that big of a hit overall," Egan said.
Indeed, Dennis Yu, co-author of Facebook Nation and CTO of the digital marketing company BlitzMetrics, said in the last five to six years, despite all the controversies, Facebook has been on a steady upward trajectory — not just in its stock price but in its total revenue.
"Every year, there's something like this that happens. And people predict the gloom and doom and death of Facebook," he said. "I think [this boycott] is no different."
We stand in solidarity with the <a href="https://twitter.com/NAACP?ref_src=twsrc%5Etfw">@NAACP</a>, <a href="https://twitter.com/ADL?ref_src=twsrc%5Etfw">@ADL</a> and others in the <a href="https://twitter.com/hashtag/StopHateForProfit?src=hash&ref_src=twsrc%5Etfw">#StopHateForProfit</a> campaign. We believe we all have a responsibility to create a truly inclusive society and are actively engaging with <a href="https://twitter.com/Facebook?ref_src=twsrc%5Etfw">@Facebook</a> to seek meaningful change. Learn more: <a href="https://t.co/7CNc8Nk2aV">https://t.co/7CNc8Nk2aV</a>
Alan Middleton, an adjunct professor of marketing at York University, said it's possible Facebook will suffer down the road. He agreed that Facebook will weather this storm in the short term, but the boycott is just another hit against the company, which has already suffered negative press over issues of privacy and data handling.
"There's a concept called the inflection point, which is when you get a whole bunch of things happen, [they] don't seem to have an effect straight away, but then they accumulate and they become big enough that it really takes off," he said.
Middleton views the boycott as another blow to how consumers view Facebook's overall brand. And according to market research, that's dropped dramatically over the last year, he said.
"So the risk is that bit by bit, the people will say, 'Am I going to go on Facebook? No, I'm going to go on the next new one coming along.'"
Meanwhile, some of those companies boycotting the social media platform will likely also take a hit, particularly smaller companies.
Smaller companies benefit from ROI
The reason so much revenue comes to Facebook through smaller advertisers is that they benefit from a benefit from advertising on the social media company from a return on investment perspective, Egan said.
"They start advertising and there's an immediate impact on their sales," she said.
Facebook is essential for millions of small and medium-sized businesses that advertise on the two platforms, said Smith. And with the inordinate amount of data Facebook collects on users, advertising on its family of apps is the most targeted traffic ad dollars can buy.
According to Statista, a statistics portal for market data, there were 2.6 billion monthly active users on Facebook as of the first quarter of 2020, making it the biggest social network worldwide.
"That's where the consumers are. You have to be where consumers are," said Yu. He said he believes Facebook can have a "tremendous" impact on sales for some companies, but that can be difficult to measure, when consumers are being exposed to other forms of messaging for a product.
But the impact on the more well-known brands who withdraw their ads from Facebook will likely be minor as they rely upon word of mouth, he said.
Smith said major companies like Coca-Cola are unlikely to see a revenue hit, since their ads on Facebook are focused more on brand awareness.
"It's not like people click on an ad and immediately buy a Coca-Cola," she said.
OTTAWA -- Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
The agency said Tuesday gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
However, Statistics Canada said its initial flash estimate points to growth of three per cent in May. The estimate will be revised and finalized at the end of July.
Economists on average expect a drop of 13 per cent for April, according to financial markets data firm Refinitiv.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19 -- a move that hit the automotive sector hard as the output of motor vehicles plunged 97.7 per cent.
Even sectors that had increases in March weren't spared in April like food manufacturing, which dropped 12.8 per cent in April as outbreaks at meat processing plants forced them to shut down.
The accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.
Output from bars and restaurants in particular plunged 40.8 per cent as local and provincial states of emergency forced their closure, or limited operations to take-out and delivery.
Accommodation services fell 45.7 per cent, Statistics Canada says, owing to restrictions on travel between provincial and international borders.
And then there was sports.
As COVID-19 iced the National Hockey League season and put the National Basketball Association, Major League Baseball and Major League Soccer on the sidelines, the arts and entertainment sector declined 25.6 per cent, further affecting companies in the accommodation and food services sectors.
Down too was construction by 22.9 per cent, concentrated largely in Ontario and Quebec, while a similar decline was noted in retail trade as brick-and-mortar stores stayed closed and consumers spent less while staying at home.
Poring through the data, Statistics Canada noted a jump in output of 17.3 per cent from online shopping as households shifted their shopping habits.
The silver lining in the horrible April numbers may be that it marked the bottom of this short but extremely deep recession, CIBC chief economist Avery Shenfeld said.
In a note, he wrote that the flash estimate for May is roughly half of what was expected, but the rebound may be more robust in June with more economic reopenings taking place.
"But thereafter, repairing the rest of the March and April wreckage will be a slower process, as recent COVID-19 flare ups here and elsewhere are showing the hazards of moving too far ahead of the virus," he wrote.
"Markets were expecting the April news, and we can't tell if the flash estimate for May will be treated as a disappointment."
Statistics Canada says the economy saw its largest monthly drop on record in April as it came to a near standstill due to the pandemic, but early indications point to a rebound in May as businesses began to reopen.
The agency says gross domestic product fell 11.6 per cent in April with non-essential businesses shut for the full month following a 7.5 per cent decline in March.
However, Statistics Canada says its initial flash estimate for May points to growth of three per cent, which will be revised and finalized at the end of July.
Economists on average expect a drop of 13 per cent for April, according to financial markets data firm Refinitiv.
Manufacturing was down 22.5 per cent in April as many factories either shuttered or greatly reduced capacity in line with public health measures to slow the spread of COVID-19.
The output of the accommodation and food services sector dropped 42.4 per cent in April, as customers replaced eating out with staying in, hitting a sector that saw a 37.1 per cent decline in March.
Billions of dollars of its market value has disappeared and its chief executive officer has been bumped down a notch in his place among the world's wealthiest.
But despite these big losses, Facebook is unlikely to suffer significant damage from the growing ad boycott over its policies to prohibit hate speech in its advertisements, say some marketing experts.
Indeed, some of the companies, depending on their size, could be hurting themselves more by limiting their exposure on the social media giant, suggest some industry experts.
"A few brands pulling their Facebook ads for a month will have little to no bearing on Facebook's bottom line," Mari Smith, co-author of Facebook Marketing: An Hour A Day, said in an email to CBC News.
And if small and medium businesses cut their ads altogether, even for one month, this could cause a massive loss of revenue for those business owners, Smith said.
"Joining the ad boycott would actually hurt their bottom line infinitely more than it would Facebook's," she said.
Coca-Cola, Starbucks are pulling ads
So far, a number of small- and medium-sized business, along with major corporations, including Verizon, Unilever, Starbucks, Best Buy, Coca-Cola, and The North Face, have said they will pull their ads from Facebook for the month of July. Canadian companies Lululemon, MEC and Arc'teryx have also joined the boycott.
WATCH | Canadian companies join Facebook ad boycott:
Several Canadian companies, including Vancouver-based Lululemon Athletica Inc. and Mountain Equipment Co-op, are joining a chorus of businesses calling on Facebook to do more to combat hate speech on its platform. 5:10
Their actions are a response to the StopHateForProfit boycott led by civil rights and advocacy groups, including the Anti-Defamation League and National Association for the Advancement of Coloured People. The groups claim Facebook has not done enough to keep racist, false and dangerous content off its platform and allowed users to call for violence against protesters fighting for racial justice in the wake of the deaths of several Black Americans.
Facebook CEO Mark Zuckerberg has said the company will change its policies to prohibit hate speech in its advertisements. Under the company's new policies, Facebook will ban ads that claim people from a specific race, ethnicity, nationality, caste, gender, sexual orientation or immigration origin are a threat to the physical safety or health of anyone else.
Still, the boycott doesn't seem to be letting up. Facebook's stock slid by more than eight per cent on Friday, erasing $56 billion US from its market value. Zuckerberg is estimated to have lost more than $7 billion of his personal net worth, and was also knocked down from third place to fourth on the Bloomberg Billionaires Index.
But those that have joined the boycott represent just a small fraction of Facebook's advertisers and revenue.
"To affect real, significant change with Facebook's content moderating rules and all related issues, probably thousands of major brands would have to pull their ad budget for a month or more. Most likely, major brands are just not going to do that when it impacts their own bottom line," Smith said.
The top 100 advertisers on Facebook platform represent only six per cent of their total ad revenue, said Beth Ellen Egan, an associate professor of advertising at Syracuse University.
Biggest advertisers haven't joined boycott
Roughly eight million companies of all sizes advertise on the social media platform, and some of the biggest advertisers, including Walmart, Disney and Procter & Gamble, have not joined the boycott.
"They're not taking that big of a hit overall," Egan said.
Indeed, Dennis Yu, co-author of Facebook Nation and CTO of the digital marketing company BlitzMetrics, said in the last five to six years, despite all the controversies, Facebook has been on a steady upwards trajectory up — not just in its stock price, but in its total revenue.
"Every year, there's something like this that happens. And people predict the gloom and doom and death of Facebook," he said. "I think [this boycott] is no different."
We stand in solidarity with the <a href="https://twitter.com/NAACP?ref_src=twsrc%5Etfw">@NAACP</a>, <a href="https://twitter.com/ADL?ref_src=twsrc%5Etfw">@ADL</a> and others in the <a href="https://twitter.com/hashtag/StopHateForProfit?src=hash&ref_src=twsrc%5Etfw">#StopHateForProfit</a> campaign. We believe we all have a responsibility to create a truly inclusive society and are actively engaging with <a href="https://twitter.com/Facebook?ref_src=twsrc%5Etfw">@Facebook</a> to seek meaningful change. Learn more: <a href="https://t.co/7CNc8Nk2aV">https://t.co/7CNc8Nk2aV</a>
Alan Middleton, an adjunct professor of marketing at York University, said it's possible Facebook will suffer down the road. He agreed that Facebook will weather this storm in the short term, but the boycott is just another hit against the company, which has already suffered negative press over issues of privacy and data handling.
"There's a concept called the inflection point, which is when you get a whole bunch of things happen, [they] don't seem to have an effect straight away, but then they accumulate and they become big enough that it really takes off," he said.
Middleton views the boycott as another blow to how consumers view Facebook's overall brand. And according to market research, that's dropped dramatically over the last year, he said.
"So the risk is that bit by bit, the people will say, 'Am I going to go on Facebook? No, I'm going to go on the next new one coming along.'"
Meanwhile, some of those companies boycotting the social media platform will likely also take a hit, particularly smaller companies.
Smaller companies benefit from ROI
The reason so much revenue comes to Facebook through smaller advertisers is that they benefit from a benefit from advertising on the social media company from a return on investment perspective, Egan said.
"They start advertising and there's an immediate impact on their sales," she said.
Facebook is essential for millions of small and medium-sized businesses that advertise on the two platforms, said Smith. And with the inordinate amount of data Facebook collects on users, advertising on its family of apps is the most targeted traffic ad dollars can buy.
According to Statista, a statistics portal for market data, there were 2.6 billion monthly active users on Facebook as of the first quarter of 2020, making it the biggest social network worldwide.
"That's where the consumers are. You have to be where consumers are," said Yu. He said he believes Facebook can have a "tremendous" impact on sales for some companies, but that can be difficult to measure, when consumers are being exposed to other forms of messaging for a product.
But the impact on the more well-known brands who withdraw their ads from Facebook will likely be minor as they rely upon word of mouth, he said.
Smith said major companies like Coca-Cola are unlikely to see a revenue hit, since their ads on Facebook are focused more on brand awareness.
"It's not like people click on an ad and immediately by a Coca-Cola," she said.
TORONTO --
Before the coronavirus, 2020 was already a banner year for Montreal-based travel blogger Ricky Zhang.
By mid-March, the self-described “Prince of Travel,” who runs a website under that regal brand, had been around the world a few times. In less than three months, he visited Switzerland, Japan, China, Qatar, the Maldives and Vancouver.
When the COVID-19 lockdown grounded the entrepreneur—and many others like Zhang who make a living globetrotting—his travel prospects came to an end. But he and his fiancee, who had been self-isolating with family in Toronto, needed to get back to Montreal where their lease was coming to an end.
So they redeemed 20,000 Aeroplan miles for a flight on Jetz, Air Canada’s celebrity and athlete charter service, and on June 1 they took what he called the “eeriest” visit to the airport and flight of their lives.
“I travel pretty often, so even though I was expecting to see very few people it was still a pretty big shock,” he told CTVNews.ca over the phone on Monday.
“It was so quiet that you could hear the birds in the distance, which is kind of crazy at an airport… There was almost an air of ‘being on edge’ among everyone. It’s a very different airport and flying experience than I’m accustomed to, which is almost like everyone is excited to travel. There’s really none of that now.”
The majority of entrances were blocked off, hand sanitizers were set up inside, physical distancing stickers lined the floors. Plexiglass barriers were installed at at check-in counters, but staff encouraged the use of self-serve kiosks to print boarding passes and bag tags.
The protocols are part of the new normal for the airline industry, which has taken a major hit during the COVID-19 pandemic that has killed more than 502,000 people worldwide and infected more than 10 million. In May, Air Canada announced that it would lay off 20,000 workers, more than 50 per cent of the airline's workforce. WestJet has trimmed its payroll by nearly 10,000 since just before the pandemic.
Airlines everywhere have been forced to impose new protocols at airports and on flights, including physical distancing, meaning fewer tickets are sold and profits have nosedived. On Monday, the U.S. Department of Transportation said Air Canada has received more customer complaints about refunds than any other foreign airline operating in the country.
It was Monday around 8 a.m., but Zhang estimates they saw no more than 30 other travellers that morning.
Boarding the flight, they had to lower their masks and present their passports, but unlike pre-pandemic protocol, airline staff did not insist on holding a passport to inspect it themselves, he said.
In the cabin, there were only five crew members, including the pilot, and only three other passengers. Everyone was fully masked. Flight attendants were still conversational, but there was no regular service. Each passenger received a "CleanCare+" kit, including water, sanitizer, a mask, gloves and a pair of disinfectant wipes.
FLIGHT SURPRISINGLY FULL
It’s taken some time for airlines to adapt to the pandemic. In April, when travel blogger Alina McLeod flew from Calgary to Saskatoon to stay with her parents before flying home to Toronto, masks weren’t mandated yet. Since there were so few people, McLeod decided against wearing one. She was given a Lysol wipe and a water bottle on the small WestJet plane, which had about 10 passengers. She says about half of them were not wearing face coverings.
After about a month of lockdown, McLeod was excited to be on the move.
“Just to be able to be on a plane and be out was nice,” she told CTVNews.ca. “They were sanitizing the whole airport the whole time, so I felt fairly safe.”
But her next flight a few weeks later felt different. In early May she returned to Toronto on Air Canada. Masks were now mandated for all passengers and the small flight was close to three-quarters full. With more people in the cabin, there was more unease, she said.
Though she expected to have an empty seat beside her on the small plane, someone sat down with a ticket for the neighbouring seat. For their safety and comfort, a flight attendant was able to move that person to a new spot before takeoff. Air Canada wasn’t selling side-by-seats at the time, so she’s not sure how the mix-up happened.
“I think everybody was surprised how full the flight was. At that time, people were still a little bit more on edge,” she said. “But I felt like they had much more knowledge about how they were going to do everything [than the first time I flew].”
These days, flying within Canada looks much different than McLeod’s first flight in April. There are signs that the industry could soon take off again as both Air Canada and WestJet announced last week they would end physical distancing on flights and again offer middle seats for sale.
The move comes as travel restrictions lift in some provinces and daily official COVID-19 cases in most of the country are hitting new lows. Quebec and Ontario, the two hardest hit provinces, have been recording fewer than 200 cases a day for much of June after highs in May of over 700 and 400, respectively.
The drop in cases and airline protocols has McLeod confident enough that she hopes to fly to Greece and some surrounding countries later this summer into the fall, and China, Japan and Southeast Asia during the winter.
Zhang has noticed interest and confidence in travel increasing, but he has no immediate plans to fly anywhere himself. He won’t be booking any international flights until the 14-day mandatory quarantine rules are relaxed. In the meantime, he says, domestic travel is appealing enough.
Zhang’s key to flying during the new normal when everyone is “on edge and cautious”? “Remembering not to let that caution transform into paranoia,” he said.
British Columbia's provincial health officer is "concerned" about recent announcements by WestJet and Air Canada that they will remove physical distancing requirements for passengers onboard aircraft.
Dr. Bonnie Henry responded to questions about the move during Monday's provincial COVID-19 briefing, saying the issue is out of her hands, given airlines are the jurisdiction of Transport Canada.
B.C. Health Minister Adrian Dix says he's expecting to see a very clear explanation from federal government outlining their stance on the airlines' decision to remove spacing measures from July 1.
"What I'd like to hear from Transport Canada, and what I'd like to hear from Health Canada, is 'do they agree with this?' Because it is absolutely within their jurisdiction to deal with. So if what they are saying is (that) what Air Canada and WestJet are doing is acceptable, they need to be explicit and they need to explain why it is."
Continuing to guard against the spread of COVID-19 is the most important summer memory we could create, says Dix.
"While B.C. travel is a welcome break from the local places we know, it is not a holiday from the skills we’ve been taught to stop the spread. In fact, as we travel to new places and those we’ve not seen for a while, we need to be even more dedicated to the actions we’ve been taking to stop the spread of COVID-19.
"Physical distancing must always be our closest companion. Physical distancing saves lives ... it will be our expectation as we are doing in BC, as we are doing in provincial jurisdiction, that the federal government will do the same in terms of ensuring that people are safe and employing physical distancing as required, especially in places where they’re together for a long time such as airplanes."
Henry reminded residents and travellers to maintain a sense of personal responsibility during the pandemic, including cancelling travel plans if you are ill or feeling unwell and being honest when answering symptom questions.
Tim Hortons is being investigated by Canadian privacy authorities after media reports raised concerns about how its smartphone app may be collecting and using data on people's movements as they go about their daily activities.
The Office of the Privacy Commissioner of Canada, alongside similar authorities in Quebec, B.C. and Alberta, said Monday it will launch an investigation into whether or not the company's mobile ordering and payment app obeys laws that govern the security of consumers' personal information.
The federal law governing privacy issues is known as the Personal Information Protection and Electronic Documents Act, or PIPEDA.
Earlier this month, the Financial Post newspaper reported on the app's use of geolocation technology, which enables the app to silently monitor a user's whereabouts and digital activities, even when they are not actively using the app.
The Post reporter requested his user data from the company under PIPEDA, and discovered the app was keeping a log of everywhere he went, even when the app was not in use, and transmitting the data back to Tim Hortons.
'Great importance'
In a statement, the privacy commissioner's office said it will look at whether Tim Hortons "is obtaining meaningful consent from app users to collect and use their geolocation data for purposes which could include the amassing and use of detailed user profiles, and whether that collection and use of the data is appropriate in the circumstances."
"The federal privacy commissioner's office considers this to be an issue of great importance to Canadians, given the privacy issues it raises. Geolocation data can be very sensitive as it can reveal information about the habits and activities of individuals, for example, medical visits or places that they regularly frequent."
In a statement to CBC News, Tim Hortons says it will cooperate with any investigation, but strongly disputes the allegations that the app is doing something that users aren't aware of.
"Since Tim Hortons launched our mobile app, our guests always had the choice of whether they share location data with us, including 'always' sharing location data — an option offered by many companies on their own apps," a spokesperson for the chain said.
"We recently updated the Tim Hortons app to limit the collection of location data to only while guests have our app open, even if a guest has selected 'always' in their device settings."
MONTREAL (NEWS 1130) – The Cirque du Soleil, whose aerobatic shows have been halted by COVID-19, has filed for creditor protection while it develops a plan to restart its business.
The company says it will seek court protection from creditors under the Companies’ Creditors Arrangement Act at a hearing Tuesday at Quebec Superior Court.
Cirque du Soleil also announced the termination of approximately 3,480 employees previously furloughed in March.
In connection with the filing, Cirque du Soleil says it has entered into a ‘stalking horse’ purchase agreement with its existing shareholders TPG, Fosun and Caisse de depot et placement du Quebec as well as Investissement Quebec as a debt provider.
It says the sponsors’ bid includes an intent to rehire a substantial majority of the terminated employees, business conditions allowing, when its operations can resume.
The company added that given that its resident shows in Las Vegas and Orlando are expected to resume before the rest of the its shows, the artists and show staff of the resident shows division are not affected.
Editor’s note: The headline of this article has been updated to correct Cirque has filed for creditor protection.
Tim Hortons is being investigated by Canadian privacy authorities after media reports raised concerns about how its smartphone app may be collecting and using data on people's movements as they go about their daily activities.
The Office of the Privacy Commissioner of Canada, alongside similar authorities in Quebec, B.C. and Alberta, said Monday it will launch an investigation into whether or not the company's mobile ordering and payment app obeys laws that govern the security of consumers' personal information.
The federal law governing privacy issues is known as the Personal Information Protection and Electronic Documents Act, or PIPEDA.
Earlier this month, the Financial Post newspaper reported on the app's use of geolocation technology, which enables the app to silently monitor a user's whereabouts and digital activities, even when they are not actively using the app.
The Post reporter requested his user data from the company under PIPEDA, and discovered the app was keeping a log of everywhere he went, even when the app was not in use, and transmitting the data back to Tim Hortons.
'Great importance'
In a statement, the privacy commissioner's office said it will look at whether Tim Hortons "is obtaining meaningful consent from app users to collect and use their geolocation data for purposes which could include the amassing and use of detailed user profiles, and whether that collection and use of the data is appropriate in the circumstances."
"The federal privacy commissioner's office considers this to be an issue of great importance to Canadians, given the privacy issues it raises. Geolocation data can be very sensitive as it can reveal information about the habits and activities of individuals, for example, medical visits or places that they regularly frequent."
In a statement to CBC News, Tim Hortons says it will cooperate with any investigation, but strongly disputes the allegations that the app is doing something that users aren't aware of.
"Since Tim Hortons launched our mobile app, our guests always had the choice of whether they share location data with us, including 'always' sharing location data — an option offered by many companies on their own apps," a spokesperson for the chain said.
"We recently updated the Tim Hortons app to limit the collection of location data to only while guests have our app open, even if a guest has selected 'always' in their device settings."