Historic $32.5B tobacco proposal faces final test in series of hearings
The proposed $32.5-billion settlement between the companies — JTI-Macdonald Corp., Rothmans, Benson & Hedges and Imperial Tobacco Canada Ltd. — and their creditors received unanimous support from those creditors in a vote last month and must now obtain the court's approval.
Over roughly half a dozen days of hearings starting Wednesday, the companies and other parties in the case will have the chance to formally voice their concerns or objections regarding the proposed deal.
At least one of the companies has opposed the plan that was filed with the court in October, saying it would be impossible to implement unless several key issues were addressed.
The Canadian Cancer Society, which is a social stakeholder in the case, has also called for changes to add smoking-reduction measures, warning governments could otherwise fumble a unique opportunity to rein in the tobacco industry and protect the health of Canadians.
'There is a one-time, historic opportunity to get the provisions in the settlement right. It is essential that the settlement contain significant measures to reduce smoking,' Rob Cunningham, the organization's lawyer, said in an email.
'This opportunity will never come again.'
Several health advocacy groups have similarly denounced the proposed deal as inadequate, accusing provincial governments of selling out to the tobacco industry by accepting payouts that hinge on future sales of harmful products.
The judge overseeing the years-long creditor protection proceedings acknowledged in November there were 'outstanding issues,' including each company's share of the total payout.
Ontario Superior Court Chief Justice Geoffrey Morawetz deemed the issues to be resolvable, however, and urged the parties to continue negotiating until the final hearing.
If the deal is approved, provinces and territories stand to get more than $24 billion over about two decades, while plaintiffs in two class-action lawsuits in Quebec would get more than $4 billion to split between them.
Another $2.5 billion is earmarked for Canadian smokers not included in the lawsuits, and more than $1 billion would go to a foundation to fight tobacco-related diseases. The money for the foundation also includes $131 million taken from the amount allocated to the Quebec plaintiffs.
The proposed deal was crafted by the monitors appointed to each company in collaboration with a mediator, capping off more than five years of confidential negotiations.
Morawetz has called the case one of "the most complex insolvency proceedings in Canadian history."
The legal saga began in Quebec with a landmark ruling that found the companies had chosen profits over the health of their customers and ordered them to pay about $15 billion to plaintiffs in two class-action lawsuits.
The case migrated to Ontario in 2019 when the companies sought creditor protection after the Quebec ruling was upheld on appeal.
All legal proceedings against the three giants were frozen during the negotiations, an order that has now been extended until the end of January.
The companies faced claims of more than $1 trillion in total, including lawsuits from provincial governments seeking to recover smoking-related health-care costs, court documents show.
Along with the proposed deal itself, the court must also approve the fees sought by lawyers in the Quebec class actions.
Court documents show the lawyers are seeking approval for more than $900 million in compensation for more than 175,000 hours of work in the case that began in the late 1990s.
The fee represents 22 per cent of the plaintiffs' share of the settlement and includes tens of millions of dollars in costs incurred during the litigation, as well as future costs related to the claims process, the documents show.
This report by The Canadian Press was first published Jan. 28, 2025.
Paola Loriggio, The Canadian Press
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Opinion: It's time to put Canada back on the investment map
It takes money to make money. This is one of the oldest truisms in business. In national terms, it takes investment to generate economic growth. But in recent years, Canada's economic policy has lost sight of that basic principle. A major reason for Canada's stalled economic growth and declining standard of living over the past decade is that business investment — a critical driver of growth — has been weak, suffering under a federal policy environment that has ranged from unhelpful to counterproductive. The result is a country struggling to compete, attract capital and generate the kind of prosperity Canadians expect and deserve. When businesses look for opportunities to grow and invest, Canada has not been a clear choice for some time and the reasons aren't mysterious. Investors want to know that when they make a bet on a country, that bet won't be derailed by unpredictable policy shifts, misguided regulatory frameworks or political interference. If we want to reverse this trend, we must act — and quickly. At a time of global uncertainty and geopolitical turmoil, countries are seeking reliable trading partners and investors are looking for stable, competitive environments. Canada can offer both. According to recent polling, 80 per cent of Canadians supported growing investment in Canada by focusing on competitiveness. With bold leadership, we can restore confidence, attract investment and build a stronger, more prosperous future for all Canadians. That starts with a national commitment to positioning Canada not just as a top choice for business but the top choice. Canadians' famous modesty can sometimes work against us. We are often reluctant to say we want to be the 'first' or the 'best,' but we must. We need to send a clear message to the world: Canada is refocused on competitiveness and committed to growth. This message must be reinforced consistently, on global stages, in major speeches and in every international engagement. But rhetoric alone won't get us there. We must back it up with action. We need to eliminate the friction that makes doing business here harder than it should be. That includes eliminating barriers to labour and trade between provinces, a long-standing Canadian problem that we've tolerated for too long. We also need levels of government to play to their strengths and, frankly, stay in their lanes. Canada's constitution gives provinces jurisdiction over many key areas that affect investment — from natural resource development to permitting and electricity generation. To successfully build business and investor confidence, the federal government must respect this. Playing to our strengths also applies to how we manage natural resources. Canada has a generational opportunity to meet growing global demand for responsibly produced energy, minerals and food. But to seize it, we need a policy environment that enables — rather than obstructs — investment. This will also require a better process for Indigenous consultation, one that ensures both partnership and consistency. And we must take a sharper, more targeted approach to immigration. Canada has the potential to attract the world's best and brightest, but we must prioritize pathways that match our economic needs and select those with the skills and capabilities to meet those needs and be set up for a long-term trajectory of success. Seven in 10 Canadians support this market-driven economic approach to immigration. Finally, we can't talk about investment without talking about infrastructure. Moving Canadian goods to global markets efficiently is essential to our competitiveness. That means faster approvals and more significant and expansive investments in trade infrastructure — starting now. None of this requires reinvention. These are pragmatic, achievable steps, ones we outline in a new report, From Barriers to Breakthroughs, that can strengthen Canada's economic foundation and restore our competitiveness on the world stage. What's needed is the political will to act, the discipline to follow through and the commitment to make economic growth a lasting national priority — one that endures beyond quarterly updates and election cycles. Adam Legge is president of the Business Council of Canada.
Yahoo
2 hours ago
- Yahoo
Best made-in-Canada cleaning brands to clean your bathroom, laundry room, kitchen & more
These made-in-Canada cleaning products are eco-friendly, efficacious and tariff-free. "Made in Canada" grocery staples are often clearly labelled. Cleaning supplies? Not so much. With U.S. President Donald Trump continually changing his stance on tariffs, many Canadians are looking for domestic alternatives to American products, including those found in our cleaning cabinets. There are a ton of homegrown businesses that offer effective — and oftentimes eco-friendly — alternatives to big-name American cleaning brands. If you're in the habit of buying all-purpose cleaners from U.S. brands like Lysol and Mr. Clean, you might be interested in made-in-Canada alternatives from Guests on Earth or Liquid Earth, for example. Tru Earth and Good Juju are fantastic places to find laundry essentials, and Attitude is home to everything you need to clean your bathroom. Because big American cleaning brands dominate the market, finding Canadian-made alternatives can sometimes be challenging, which is why we created this resource. If you want to buy Canadian products whenever possible, don't neglect your go-to home essentials and everyday cleaning supplies. Click here to jump to our list of Canadian cleaning and laundry brands Made-in-Canada cleaning and laundry brands: Quick shop Cleaning brands: Attitude Guests on Earth FRANK Green Cricket Nature Clean Biovert Pink Solution WHOOSH! Mint Royal Sponge Myni Liquid Earth Nature Bee Make Nice Company Lemon Aide Laundry brands: Soak Nellie's Buncha Farmers Good Juju The Unscented Company Tru Earth The Bare Home Aspen Clean Eucalan Simply Clean "Made in Canada" vs. "Product of Canada" vs. "Canadian owned" vs. "Based in Canada" Unlike at the grocery store, where "made in Canada" labelling is made clear, the origins of fashion, beauty, personal care and home brands can be difficult to decipher. Is "made in Canada" the same as "based in Canada?" What about a Canadian brand no longer 100 per cent Canadian-owned, like Hudson's Bay and Tim Hortons? To satisfy a "Product of Canada" claim, Canada's Competition Bureau requires non-food products to meet a "higher threshold of Canadian content" (98 per cent). "Made in Canada" claims are subject to a 51 per cent threshold of Canadian content "but should be accompanied by a qualifying statement indicating that the product contains imported content." When a brand is based in Canada or owned/designed by Canadians, that doesn't automatically mean it's made in Canada. Shoppers still choose to support a Canadian-owned or founded business, but its manufacturing may occur overseas. That said, buying from online and brick-and-mortar Canadian retailers can help support Canadian workers, too. Roots, for example, is no longer completely Canadian-owned, but its leather goods are still hand-crafted in Toronto, Ont. 🇺🇸 Popular American cleaning brands Procter & Gamble (P&G) brands, including Tide, Mr. Clean, Swiffer and Dawn. The Clorox Company brands, including Clorox Bleach, Pine-Sol, Liquid-Plumr and Clorox Disinfecting Wipes. Reckitt Benckiser brands, including Lysol, Dettol, Finish and Woolite. Church & Dwight Co. brands, including Arm & Hammer and OxiClean. SC Johnson brands, including Windex, Glade, Pledge and Scrubbing Bubbles. Canadian cleaning brands Attitude 🇨🇦 Made-in-Canada Natural personal care and household products crafted with hypoallergenic and EWG VERIFIED ingredients Where to buy: Attitude, Walmart Canada, and Amazon Canada Attitude products are crafted using natural, hypoallergenic and EWG VERIFIED ingredients that adhere to the highest quality and eco-conscious standards. Beyond cleaning products, the brand sells makeup, skincare, hair and body care, plus suncare products. Click here to shop them all. Guests on Earth 🇨🇦 Made-in-Canada Certified B-Corp brand selling concentrated cleaning products and reusable vessels Where to buy: Guests on Earth, and The Detox Market Traditional cleaning products come in single-use plastic bottles and are over 90 per cent water, according to Guests on Earth. The brand's compact, concentrated refills save 10x the emissions in transportation. How? By combining the concentrated packets with tap water, thus drastically decreasing what's shipped to you. Eco-Max 🇨🇦 Made-in-Canada Cleaning products, including carpet cleaners, dish soaps, and laundry detergents Where to buy: Canadian Tire, Amazon Canada, Manufactured in Mississauga, Ontario, this Canadian family-owned company sells cleaning products that are gentle on people and the planet. FRANK 🇨🇦 Made-in-Canada Affordable home essentials Where to buy: Canadian Tire Canadian Tire's in-house brand FRANK sells a wide range of household essentials, like paper products, cleaning supplies and laundry products. It even sells candy and chips, coffee pods and other pantry staples. Green Cricket 🇨🇦 Made-in-Canada Hypoallergenic, biodegradable cleaning products Where to buy: Amazon Canada and Formulated to exclude ingredients that are known health hazards, Green Cricket personal care products are 100 per cent natural and made in Canada. Nature Clean 🇨🇦 Made-in-Canada Hypoallergenic, biodegradable cleaning products Where to buy: Amazon Canada and All Nature Clean products are hypoallergenic, biodegradable and created from naturally-derived ingredients. The brand has been around since 1963 and strives to lessen its plastic footprint. Biovert 🇨🇦 Made-in-Canada Cleaning products, laundry, hand soap, dish wash Where to buy: and Walmart Manufactured in Laval, Quebec, Biovert's range of low-impact, eco-friendly household cleaning product are free of allergens and carcinogens. Pink Solution 🇨🇦 Made-in-Canada All-purpose cleaners, hard surface cleaners, stain removers Where to buy: Amazon Canada, Canadian Tire, Walmart Since the '90s, Pink Solutions has been making all-natural, biodegradable, non-toxic, septic-safe, and perfume-free cleaning products in North Vancouver, BC. WHOOSH! 🇨🇦 Made-in-Canada Multipurpose screen cleaners Where to buy: Amazon Canada This Toronto-founded brand makes non-toxic, environmentally-friendly screen shine sprays, including one beloved by a Yahoo Canada editor. Mint 🇨🇦 Made-in-Canada Eco-friendly, non-toxic cleaning products Where to buy: Founded in 2016 in Ucluelet, British Columbia, Mint sells eco-friendly cleaning products, ranging from laundry detergent to glass cleaners. Royal Sponge 🇨🇦 Made-in-Canada Food storage, sponges, sink sets and more. Where to buy: Amazon Canada All Royal Sponge products are made at its facility in Ontario. Myni 🇨🇦 Made-in-Canada Non-toxic, eco-friendly cleaning concentrates Where to buy: These compact cleaning concentrates are designed to be combined with water in reusable vessels for eco-friendly, plastic-free cleaning. Liquid Earth 🇨🇦 Made-in-Canada Non-toxic, natural and eco-friendly cleaning essentials Where to buy: This made-in-Canada brand elevates your cleaning routine by blending essential oils in natural cleaners. Nature Bee 🇨🇦 Made-in-Canada Plastic wrap alternatives and cleaning products made with locally-sourced ingredients Where to buy: Founded in Victoria, British Columbia, this woman-owned business is a go-to spot for reusable beeswax food wraps and low-waste cleaning products. Make Nice Company 🇨🇦 Made-in-Canada Plastic wrap alternatives and cleaning products made with locally-sourced ingredients Where to buy: Hailing from Vancouver, BC, this handmade soapary specializes in solid dish soaps made with 100 per cent natural and vegan ingredients. Lemon Aide 🇨🇦 Made-in-Canada High-performance, pet-friendly cleaning products made without any harsh or toxic ingredients Where to buy: and Walmart Canadian laundry brands Soak 🇨🇦 Made-in-Canada Eco-friendly, quick-rinse laundry products made for hand- or machine-washing Where to buy: Amazon Canada and A fan-favourite for delicates, Soak uses a gentle, no-rinse formulation to hand- or machine-wash your softest sweaters and laciest lingerie. Buncha Farmers 🇨🇦 Made-in-Canada Eco-friendly laundry products made with biodegradable ingredients, free from harsh chemicals. Where to buy: Amazon Canada, Walmart and Home Hardware. This Ontario-based laundry brand is the brainchild of, you guessed it, a bunch of farmers. Together with local artisans, the group created eco-friendly laundry products, including its most famous product: the Stain Remover Stick. Nellie's 🇨🇦 Made-in-Canada Planet-friendly laundry, kitchen and bathroom cleaning products Where to buy: Amazon Canada and Canadian Tire Based in North Vancouver, B.C., this family-run business makes 90 per cent of its products in Canada. The eco-conscious brand uses far less plastic packaging and carbon emissions than traditional liquid detergent. Good Juju 🇨🇦 Made-in-Canada Plastic-free, biodegradable and sustainably-sourced materials Where to buy: Amazon Canada, Good Juju, and The Detox Market This all-natural, plastic-free home and body care brand is proudly Canadian and women-owned. It sells hair care, body care and laundry essentials, including eco-friendly and certified biodegradable laundry detergent strips. The Unscented Company 🇨🇦 Made-in-Canada Women-owned, B Corp Certified company dedicated to sustainable practices Where to buy: Amazon Canada and This female-owned business is B Corp Certified and dedicated to local sourcing, refillable packaging, waterless products, and lessening the dependency on single-use plastics. All home and body care products are unscented. Simply Clean 🇨🇦 Made-in-Canada Eco-friendly, hypoallergenic laundry products Where to buy: Amazon Canada and Manufactured in Guelph, Ontario, these good-for-the-earth cleaning products are hypoallergenic and free from perfumes, enzymes, and synthetic dyes. Tru Earth 🇨🇦 Made-in-Canada Green alternative to many laundry detergents Where to buy: Amazon Canada and Canadian Tire According to the brand, every 32-load pack of Tru Earth laundry eco-strips eliminates one plastic jug and other single-use plastics from potentially ending up in landfills and oceans. Tru Earth estimates that it's eliminated roughly 185,792,000 containers thus far. Aspen Clean 🇨🇦 Made-in-Canada Non-toxic, biodegradable laundry detergent Where to buy: Amazon Canada and This family-owned, Vancouver-based company sell a range of eco-friendly products, including laundry pods and bathroom cleaners, that are safe to use for the whole family. Eucalan 🇨🇦 Made-in-Canada Non-toxic, biodegradable laundry detergent Where to buy: Amazon Canada and Walmart A Paris, Ontario-based no-rinse laundry detergent that works just as well for hand-washing your clothes as machine washing. The Bare Home 🇨🇦 Made-in-Canada Sustainable dish soaps, all-purpose cleaners, laundry detergents and more Where to buy: All products from The Bare Home are biodegradable, phosphate-free, and dye-free. They're never tested on animals and only scented with high-quality essential oils.
Yahoo
2 hours ago
- Yahoo
The data is in: Many Canadians are still avoiding travel to the US
Canadian travel to the United States by car has declined for seven consecutive months. Canadians have said they are boycotting travel to the United States in response to Trump's policies. The travel decline started at the beginning of the year and has continued into the summer. Canadians are still avoiding travel to the United States. Preliminary data from the Canadian government suggests the number of Canadians visiting the United States by car declined year over year for the seventh straight month in July. Canadian residents returning to the country from the United States via car declined by nearly 37% compared to July 2024, according to Statistics Canada. Road trips typically account for the majority of Canadians traveling to the United States. Return trips by air also declined nearly 26% year-over-year, while Canadian residents returning from overseas countries increased. Canadians started boycotting United States travel and American goods in response to President Donald Trump's tariff policy and expressed desire to make the neighbor to the north the 51st state, Business Insider previously reported. On August 1, Trump raised tariffs on Canada to 35% for goods that don't fall under the United States-Mexico-Canada Agreement. Trump said Canada had failed to secure its border and crack down on drug trafficking. Canadian Prime Minister Mark Carney has said most goods fall under the USMCA. On Friday, he said 85% of Canada's trade with the United States was "tariff-free." However, according to US Census Bureau Data, about 38% of Canadian goods, when measured by value, entered the United States under USMCA in 2024. Canadians told Business Insider earlier this year they were boycotting the United States to protest Trump's policies and that the situation had led to a surge in national pride. Travel companies have previously said Canadians were opting for Europe, Mexico, and the Caribbean instead of the United States. A recent survey by Longwoods International, a market research consultancy focused on the travel tourism industry, found Canadian sentiment has remained icy toward the United States. The survey, which polled 1,000 Canadian adults in July, found that 63% said United States government policies made them less likely to visit the country. It also found that while 84% of respondents believed the United States was full of attractions, only 36% felt it was welcoming to travelers from diverse backgrounds. Do you have a story to share about the Canada-to-United States travel boycott? Contact this reporter at kvlamis@ Read the original article on Business Insider
