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Hong Kong is criminalizing CBD as a ‘dangerous drug’ alongside heroin

February 1, 2023 Admin Leave a comment

Hong Kong
CNN
—

Two years ago, cannabidiol was booming in Hong Kong. The compound, known as CBD, was popping up in cafes, restaurants and stores, with businesses eager to join an exciting new market already well-established in countries around the world.

That all came to an end on Wednesday, when CBD was criminalized in the city and declared a “dangerous drug” on the same level as heroin and fentanyl.

CBD is a chemical found in hemp and marijuana plants. It’s non-psychoactive, meaning it won’t get you high; instead, CBD is often marketed for everything from helping to relieve pain and inflammation to reducing stress and anxiety.

It has surged in global popularity in recent years, with brands adding it to shampoos, drinks, body oils, gummy bears and dog treats. In the United States and Europe, you might find it sold in coffee shops and farmers’ markets, mom-and-pop and high-end department stores, and even drugstore chain CVS.

But last June, draft legislation banning CBD was introduced to Hong Kong lawmakers, and went into effect February 1.

Under the new legislation, possession and consumption of any amount of CBD is punishable by seven years in prison and a fine of 1 million Hong Kong dollars ($127,607). Manufacturing, importing or exporting CBD is punishable by life imprisonment.

Even travelers could face penalties, with the government warning people not to risk “buying these products or bringing them back to Hong Kong.”

The same penalties and conditions apply for cannabis, also known as marijuana.

The ban has forced CBD-focused businesses to close, while other brands have had to roll back or get rid of CBD products.

“It’s a shame because there’s a missed opportunity for sure,” said Luke Yardley, founder of Yardley Brothers Craft Brewery, which had previously sold four products containing CBD – a lager and three nonalcoholic drinks. “I think that anything that you can’t get intoxicated from, and helps you to relax, is probably a good thing.”

The health benefits and risks of CBD have long been debated. In the US, most CBD products are not regulated by the Food and Drug Administration (FDA), which means that people can purchase items off the shelf.

Some research has found that the compound can ease pain and may be useful for those who have trouble sleeping. The FDA has approved one drug with CBD to treat rare, severe forms of epilepsy.

But concerns have also been raised, with some experts saying there isn’t enough scientific research into how CBD works or its potential effects.

In January, the FDA announced CBD products will require a new regulatory pathway in the US, saying: “We have not found adequate evidence to determine how much CBD can be consumed, and for how long, before causing harm.”

In Hong Kong, which has strict cannabis laws, the government’s concern revolves around the possible presence of its sister compound THC (tetrahydrocannabinol) in CBD products. THC is also found in cannabis plants and is responsible for the “high.”

In the US and Europe, CBD products can carry up to 0.3% – a trace amount – of THC, but even that is not acceptable in Hong Kong. And while CBD products could avoid this trace amount by using a pure form of CBD, most manufacturers mix other compounds for higher potency.

From 2019 to early 2022, Hong Kong authorities launched nearly 120 “operations” seizing and testing CBD products from restaurants and shops to warehouses, Secretary for Security Tang Ping-keung said last year. He added that more than 3,800 products were found to contain THC, though did not give further detail on the proportion or percentage of THC in those products.

In a written response to questions raised in the Legislative Council, Tang suggested the government’s traditionally tough stance on THC should be applied to CBD “to protect public heath.”

“We have adopted ‘zero tolerance’ towards drugs and we understand that it is a matter of public concern,” he said. “Therefore, the government plans to control CBD.”

The Action Committee Against Narcotics, a group of representatives from “the fields of social work, education, medical and community service” that advises the government on anti-drug policy, said in a statement last November that it supported the CBD ban and the government’s goal of “a drug-free Hong Kong.”

Many businesses began bracing themselves for regulatory changes in 2022, ahead of the government’s official announcement this January.

Yardley Brothers Craft Brewery stopped making its CBD beverages late last year in anticipation of the ban, and all its leftover products had sold out by December, said Yardley.

He said the CBD drinks had been “very popular,” amounting to roughly 8% of the business, as they offered adults a nonalcoholic option to enjoy when out with friends. At some bars, regulars “come in every weekend for a glass of CBD lemonade,” he said.

Now “there’s less choice for consumers in Hong Kong. That’s not necessarily a step in the right direction,” he said.

Some companies have been forced to shut down completely.

Med Chef, a restaurant that opened in 2021, once boasted of offering Hong Kong’s “first full menu of CBD-infused cocktails, appetizers and entrees.” In a news release during its launch, the restaurant founder emphasized the health and wellness benefits of CBD.

But by early November 2022, it had closed its doors. “We have worked hard in the past to present CBD in its most acceptable form and integrate our food and beverage concepts,” the restaurant wrote in a farewell post on Instagram. “It’s a pity that things didn’t go the way we hoped. Under the latest policies of those in power, we ultimately aren’t able to continue forward with everyone.”

Hong Kong’s first CBD cafe, Found, had also made headlines when it opened in 2020. It sold a variety of CBD products including infused coffee and beers, oils to help sleep, powder to sprinkle into food and pet products to help ease stiff joints.

It closed at the end of September 2022, telling patrons on Instagram that their positive feedback had shown that “CBD could help to cope with the stresses of daily life.”

“Sadly, in spite of the demonstrable positive impact, it has now become apparent that the Hong Kong government intends to adopt new legislation to prohibit the sale and possession of CBD,” it wrote.

Yardley said the government’s concerns about THC were valid – but argued they could have implemented better regulations, such as requiring certifications or standards of safety around CBD samples.

“It’s quite an extreme response to just fully ban it,” he said.

And while the brewery will continue operating, with plans for alternative nonalcoholic beverages to fill the gap, Yardley hopes CBD will be back on the menu. “I hope for the future that it might become legal again,” he said.

This story has been updated to include details of the draft legislation and its introduction.

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Business

McDonald’s, In-N-Out, and Chipotle are spending millions to block raises for their workers

January 25, 2023 Admin Leave a comment

New York
CNN
—

California voters will decide next year on a referendum that could overturn a landmark new state law setting worker conditions and minimum wages up to $22 an hour for fast-food employees in the nation’s largest state.

Chipotle, Starbucks, Chick-fil-A, McDonald’s, In-N-Out Burger and KFC-owner Yum! Brands each donated $1 million to Save Local Restaurants, a coalition opposing the law. Other top fast-food companies, business groups, franchise owners, and many small restaurants also have criticized the legislation and spent millions of dollars opposing it.

The measure, known as the FAST Act, was signed last year by California Gov. Gavin Newsom and was set to go into effect on January 1. On Tuesday, California’s secretary of state announced that a petition to stop the law’s implementation had gathered enough signatures to quality for a vote on the state’s 2024 general election ballot.

The closely-watched initiative could transform the fast-food industry in California and serve as a bellwether for similar policies in other parts of the country, proponents and critics of the measure argued.

The law is the first of its kind in the United States, and authorized the formation of a 10-member Fast Food Council comprised of labor, employer and government representatives to oversee standards for workers in the state’s fast-food industry.

The council had the authority to set sector-wide minimum standards for wages, health and safety protections, time-off policies, and worker retaliation remedies at fast-food restaurants with more than 100 locations nationally.

The council could raise the fast-food industry minimum wage as high as $22 an hour, versus a $15.50 minimum for the rest of the state. From there, that minimum would rise annually based on inflation.

California’s fast-food industry has more than 550,000 workers. Nearly 80% are people of color and around 65% are women, according to the Service Employees International Union, which has backed the law and the Fight for $15 movement.

Advocates of the law, including unions and labor groups, see this as a breakthrough model to improve pay and conditions for fast-food workers and overcome obstacles unionizing workers in the industry. They argue that success in California may lead other labor-friendly cities and states to adopt similar councils regulating fast-food and other service industries. Less than 4% of restaurant workers nationwide are unionized.

Labor law in the United States is structured around unions that organize and bargain at an individual store or plant. This makes it nearly impossible to organize workers at fast-food and retail chains with thousands of stores.

California’s law would bring the state closer to sectoral bargaining, a form of collective bargaining where labor and employers negotiate wages and standards across an entire industry.

Opponents of the law say it’s a radical measure that would have damaging effects. They argue it unfairly targets the fast-food industry and will increase prices and force businesses to lay off workers, citing an analysis by economists at UC Riverside which found that if restaurant worker compensation increases by 20%, restaurant prices would increase by approximately 7%. If restaurant worker compensation increased by 60%, limited-service restaurant prices would jump by up to 22%, the study also found.

“This law creates a food tax on consumers, kills jobs, and pushes restaurants out of local communities,” said the Save Local Restaurants coalition.

On Wednesday, McDonald’s US President Joe Erlinger blasted the law as one driven by struggling unions that would lead to “an unelected council of political insiders, not local business owners and their teams,” making key business decisions.

Opponents have turned to a similar strategy used by Uber, Lyft and gig companies that sought to overturn a 2020 California law that would have required them to reclassify drivers as employees, and not “independent contractors,” which would provide them with benefits such as a minimum wage, overtime, and paid sick leave.

In 2020, Uber, Lyft, DoorDash, Instacart and others spent more than $200 million to successfully persuade California voters to pass Proposition 22, a ballot measure that exempted the companies from reclassifying their workers as employees.

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Business

‘Out of control’: No one knows how much to tip

December 17, 2022 Admin Leave a comment

New York
CNN
—

A new checkout trend is sweeping across America, making for an increasingly awkward experience: digital tip jars.

You order a coffee, an ice cream, a salad or a slice of pizza and pay with your credit card or phone. Then, an employee standing behind the counter spins around a touch screen and slides it in front of you. The screen has a few suggested tip amounts – usually 10%, 15% or 20%. There’s also often an option to leave a custom tip or no tip at all.

The worker is directly across from you. Other customers are standing behind, waiting impatiently and looking over your shoulder to see how much you tip. And you must make a decision in seconds. Oh lord, the stress.

Customers and workers today are confronted with a radically different tipping culture compared to just a few years ago — without any clear norms. Although consumers are accustomed to tipping waiters, bartenders and other service workers, tipping a barista or cashier may be a new phenomenon for many shoppers. It’s being driven in large part by changes in technology that have enabled business owners to more easily shift the costs of compensating workers directly to customers.

“I don’t know how much you’re supposed to tip and I study this,” said Michael Lynn, a professor of consumer behavior and marketing at Cornell University and one of the leading researchers on US tipping habits.

Adding to the changing dynamics, customers were encouraged to tip generously during the pandemic to help keep restaurants and stores afloat, raising expectations. Total tips for full-service restaurants were up 25% during the latest quarter compared to a year ago, while tips at quick-service restaurants were up 17%, according to data from Square.

The shift to digital payments also accelerated during the pandemic, leading stores to replace old-fashioned cash tip jars with tablet touch screens. But these screens and the procedures for digital tipping have proven more intrusive than a low-pressure cash tip jar with a few bucks in it.

Customers are overwhelmed by the number of places where they now have the option to tip and feel pressure about whether to add a gratuity and for how much. Some people deliberately walk away from the screen without doing anything to avoid making a decision, say etiquette experts who study tipping culture and consumer behavior.

Tipping can be an emotionally charged decision. Attitudes towards tipping in these new settings vary widely.

Some customers tip no matter what. Others feel guilty if they don’t tip or embarrassed if their tip is stingy. And others eschew tipping for a $5 iced coffee, saying the price is already high enough.

“The American public feels like tipping is out of control because they’re experiencing it in places they’re not used to,” said Lizzie Post, co-president of the Emily Post Institute and its namesake’s great-great-granddaughter. “Moments where tipping isn’t expected makes people less generous and uncomfortable.”

Starbucks has rolled out tipping this year as an option for customers paying with credit and debit cards. Some Starbucks baristas told CNN that the tips are adding extra money to their paychecks, but customers shouldn’t feel obligated to tip every time.

One barista in Washington State said that he understands if a customer doesn’t tip for a drip coffee order. But if he makes a customized drink after spending time talking to the customer about exactly how it should be made, “it does make me a little bit disappointed if I don’t receive a tip.”

“If someone can afford Starbucks every day, they can afford to tip on at least a few of those trips,” added the employee, who spoke under the condition of anonymity.

The option to tip is seemingly everywhere today, but the practice has a troubled history in the United States.

Tipping spread after the Civil War as an exploitative measure to keep down wages of newly-freed slaves in service occupations. Pullman was the most notable for its tipping policies. The railroad company hired thousands of Black porters, but paid them low wages and forced them to rely on tips to make a living.

Critics of tipping argued that it created an imbalance between customers and workers, and several states passed laws in the early 1900s to ban the practice.

In “The Itching Palm,” a 1916 diatribe on tipping in America, writer William Scott said that tipping was “un-American” and argued that “the relation of a man giving a tip and a man accepting it is as undemocratic as the relation of master and slave.”

But tipping service workers was essentially built into law by the 1938 Fair Labor Standards Act, which created the federal minimum wage that excluded restaurant and hospitality workers. This allowed the tipping system to proliferate in these industries.

In 1966, Congress created a “subminimum” wage for tipped workers. The federal minimum wage for tipped employees has stood at $2.13 per hour — lower than the $7.25 federal minimum — since 1991, although many states require higher base wages for tipped employees. If a server’s tips don’t add up to the federal minimum, the law says that the employer must make up the difference. But this doesn’t always happen. Wage theft and other wage violations are common in the service industry.

The Department of Labor considers any employee working in a job that “customarily and regularly” receives more than $30 a month in tips as eligible to be classified a tipped worker. Experts estimate there are more than five million tipped workers in the United States.

Just how much to tip is entirely subjective and varies across industries, and the link between the quality of service and the tip amount is surprisingly weak, Lynn from Cornell said.

He theorized that a 15% to 20% tip at restaurants became standard because of a cycle of competition among customers. Many people tip to gain social approval or with the expectation of better service. As tip levels increase, other customers start tipping more to avoid any losses in status or risk poorer service.

The gig economy has also changed tipping norms. An MIT study released in 2019 found that customers are less likely to tip when workers have autonomy over whether and when to work. Nearly 60% of Uber customers never tip, while only about 1% always tip, a 2019 University of Chicago study found.

What makes it confusing, Lynn said, is that “there’s no central authority that establishes tipping norms. They come from the bottom up. Ultimately, it’s what people do that helps establish what other people should do.”

You should almost always tip workers earning the subminimum wage such as restaurant servers and bartenders, say advocates and tipping experts.

When given the option to tip in places where workers make an hourly wage, such as Starbucks baristas, customers should use their discretion and remove any guilt from their decision, etiquette experts say. Tips help these workers supplement their income and are always encouraged, but it’s okay to say no.

Etiquette experts recommend that customers approach the touch screen option the same way they would a tip jar. If they would leave change or a small cash tip in the jar, do so when prompted on the screen.

“A 10% tip for takeaway food is a really common amount. We also see change or a single dollar per order,” said Lizzie Post. If you aren’t sure what to do, ask the worker if the store has a suggested tip amount.

Saru Jayaraman, president of One Fair Wage, which advocates to end subminimum wage policies, encourages customers to tip. But tips should never count against service workers’ wages, and customers must demand that businesses pay workers a full wage, she said.

“We’ve got to tip, but it’s got to be combined with telling employers that tips have to be on top, not instead of, a full minimum wage,” she said.

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Idaho students: Food truck video of slain students offers timeline of their final hours

November 18, 2022 Admin Leave a comment

CNN
—

Two of the four University of Idaho students who were killed on Sunday were last seen alive ordering at a late-night food truck in Moscow, Idaho, at about 1:41 a.m., the truck’s live Twitch stream shows.

In the video, Madison Mogen and Kaylee Goncalves order $10 worth of carbonara from Grub Truckers and wait about 10 minutes for their food. As they wait, they can be seen chatting with each other and other people standing by the truck.

Joseph Woodall, 26, who manages the food truck, told CNN the two students did not seem to be in distress or in danger in any way.

The food truck video offers a helpful timeline of their final hours, Moscow Police Department Chief James Fry said Wednesday, in a quadruple murder case that remains wide open, with no suspect and no murder weapon and a reportedly bloody scene where investigators were still working Thursday.

The students – Mogen, Goncalves, Ethan Chapin and Xana Kernodle – were all found stabbed to death in their shared off-campus home on Sunday afternoon, authorities said.

Autopsies have been completed and the results will be revealed when available, an employee at the Spokane County Medical Examiner’s Office told CNN. Police on Thursday issued a release from Latah County Coroner Cathy Mabbutt listing the cause of death as homicide and the manner of death as stabbing. No autopsy details were included.

The killings and the lack of information from authorities have rankled residents of Moscow, a city of 25,000 that hasn’t recorded a murder since 2015, according to state police data. Local police are working with the FBI and state police to hunt down a suspect.

Despite the lack of an arrest or suspect, Moscow police initially described the killings as a “targeted attack” and said there was no threat to the public. Fry backtracked some on Wednesday in his first news conference on the case.

“We cannot say there’s no threat to the community,” Fry said. “And as we have stated, please stay vigilant, report any suspicious activity and be aware of your surroundings at all times.”

Some students left the area days head of fall recess, which begins Monday.

“Everybody kinda went back home because they’re scared (with no suspect) caught,” student Nathan Tinno, who was planning to leave Friday after attending some classes, told CNN. “It’s definitely uneasy.”

University President Scott Green said students are encouraged to do what is right for them and they have the administration’s support.

Latah County Prosecuting Attorney Bill Thompson told NBC’s “Today Show” on Thursday investigators are still working to determine a suspect.

“We have no one in custody, and the police have been unable to identify who is responsible for these homicides,” he said.

Jim Chapin, the father of Ethan Chapin, issued a statement Wednesday calling on police to release further information about the killings.

“There is a lack of information from the University of Idaho and the local police, which only fuels false rumors and innuendo in the press and social media,” he said. “The silence further compounds our family’s agony after our son’s murder. For Ethan and his three dear friends slain in Moscow, Idaho, and all of our families, I urge officials to speak the truth, share what they know, find the assailant, and protect the greater community.”

Green said they have been working with police to get information out to the public.

“We have helped when asked and continually pushed for as much information as possible, knowing we cannot interfere with the important work of a good investigation,” he said in a statement.

Police have begun to lay out a timeline of what happened in the hours leading up to the killings, though much remains unknown.

Chapin and Kernodle were at a party on campus Saturday night, while Mogen and Goncalves were at a downtown bar before they all returned to the home early Sunday sometime after 1:45 a.m., Fry said.

All four were fatally stabbed at some point in the early morning hours Sunday, Fry said, but there was no 911 call until noon. The chief didn’t reveal who called 911. The coroner’s release says the four were pronounced dead at noon.

Two additional roommates were home at the time of the deaths, neither of whom were injured nor held hostage, Green said. The two roommates have been fully cooperative with law enforcement, Idaho State Police spokesman Aaron Snell told CNN on Wednesday.

“There was other people home at that time, but we’re not just focusing just on them, we’re focusing on everybody that may be coming and going from that residence,” Fry said.

After the 911 call about an unconscious person came in, officers found the door to the home open and a gruesome crime scene.

There was no evidence of forced entry, Fry said. “We’re not 100% sure the door was unlocked, there was no damage to anything and the door was still open when we got there,” Fry said.

There was “quite a bit of blood in the apartment,” Mabbutt told CNN affiliate KXLY Tuesday.

“It was a pretty traumatic scene to find four dead college students in a residence,” she said.

Just hours before their deaths, Goncalves had posted a photo of the group with the caption, “one lucky girl to be surrounded by these ppl everyday,” adding a heart emoji.

The 21-year-old from Rathdrum, Idaho, was a senior majoring in general studies and a member of the Alpha Phi sorority.

Her older sister, Alivea Goncalves, sent a statement to the Idaho Statesman on behalf of her family and Mogen’s.

“They were smart, they were vigilant, they were careful and this all still happened,” she said. “No one is in custody and that means no one is safe. Yes, we are all heartbroken. Yes, we are all grasping. But more strong than any of these feelings is anger. We are angry. You should be angry.”

Mogen, 21, was from Coeur d’Alene, Idaho, and a senior majoring in marketing. She was a member of the Pi Beta Phi sorority.

Chapin, 20, was one of three triplets, all of whom are enrolled at the University of Idaho, his family said in a statement. He was a freshman from Conway, Washington, majoring in recreation, sport and tourism management. He was a member of the Sigma Chi fraternity.

“Ethan lit up every room he walked into and was a kind, loyal, loving son, brother, cousin, and friend,” his mother, Stacy Chapin, said. “Words cannot express the heartache and devastation our family is experiencing. It breaks my heart to know we will never be able to hug or laugh with Ethan again, but it’s also excruciating to think about the horrific way he was taken from us.”

Kernodle, 20, was from Avondale, Arizona. She was majoring in marketing and was a member of Pi Beta Phi sorority.

She was “positive, funny and loved by everyone who met her,” said her older sister, Jazzmin Kernodle.

“She was so lighthearted, and always lifted up a room,” Jazzmin Kernodle said. “She made me such a proud big sister, and I wish I could have had more time with her. She had so much life left to live. My family and I are at a loss of words, confused, and anxiously waiting for updates on the investigation.”

She also offered condolences to the other victims and their families. “My sister was so lucky to have them in her life.”

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Idaho students: Food truck video of slain students offers timeline of their final hours

November 18, 2022 Admin Leave a comment

CNN
—

Joseph Woodall, 26, who manages the food truck, told CNN the two students did not seem to be in distress or in danger in any way.

The students – Mogen, Goncalves, Ethan Chapin and Xana Kernodle – were all found stabbed to death in their shared off-campus home on Sunday afternoon, authorities said.

The killings and the lack of information from ammuthorities have rankled residents of Moscow, a city of 25,000 that hasn’t recorded a murder since 2015, according to state police data. Local police are working with the FBI and state police to hunt down a suspect.

“We cannot say there’s no threat to the community,” Fry said. “And as we have stated, please stay vigilant, report any suspicious activity and be aware of your surroundings at all times.”

Some students left the area days head of fall recess, which begins Monday.

Latah County Prosecuting Attorney Bill Thompson told NBC’s “Today Show” on Thursday investigators are still working to determine a suspect.

“We have no one in custody, and the police have been unable to identify who is responsible for these homicides,” he said.

Jim Chapin, the father of Ethan Chapin, issued a statement Wednesday calling on police to release further information about the killings.

University President Scott Green said they have been working with police to get information out to the public.

“We have helped when asked and continually pushed for as much information as possible, knowing we cannot interfere with the important work of a good investigation,” he said in a statement Wednesday.

Police have begun to lay out a timeline of what happened in the hours leading up to the killings, though much remains unknown.

Chapin and Kernodle were at a party on campus Saturday night, while Mogen and Goncalves were at a downtown bar before they all returned to the home early Sunday sometime after 1:45 a.m., Fry said.

All four victims were fatally stabbed at some point in the early morning hours Sunday, Fry said, but there was no 911 call until noon. The chief didn’t reveal who called 911. The coroner’s release says the four were pronounced dead at noon.