That’s her story. Apparently they didn’t fine her either.
I don't see that this contradicts what I wrote above. It's always police officer's discretion. Sometimes they are more lenient when a new rule comes in. Sometimes they have their own opinions. Sometimes they prefer to focus on more serious and immediate issues. Sometimes they haven't received clear instructions from their own superiors - and they're not lawyers and don't want to get into legal fights.
It's also possible she coudl get fined later - I'm not saying it will happen, but that it could.
My main point is: DO NOT rely on such specific cases or anecdotal information for future travel. If you want to risk it, that's your decision. If you do, DO NOT expect that what happens to you will be the same; DO NOT expect that "I heard from [my friend/facebook/the Toronto Sun/about a court challenge]" will be a legal defence or convince the next police officer/public health officer.
And as noted, even if you decide to risk it and that you will refuse to stay in a hotel, it's possible you won't be let on a plane without the reservation paid for.
Note, this is irrespective of what one thinks about the policy - just saying that if you rely on this post to not do it, any consequences are your own to deal with.
(The one thing I'm pretty sure of is that the long list of charter rights she believes are being violated - almost certainly gibberish. And I bet the police officer knew that, too.)