New auto regulations to protect consumers, businesses: minister

Soon-to-be-introduced automotive regulations aimed to create consistent standards in the automotive industry will help eliminate unexpected costs and protect consumers when it comes to their vehicles, according to the province.

Service Alberta Minister Brian Malkinson announced the regulatory changes that he says will create a balanced playing field for businesses and consumers on Thursday.

“They will help consumers feel more confident when buying a car or getting it fixed,” said Malkinson of the regulations to take effect next Wednesday.

“Not only will these rules protect consumers, they will also give businesses confidence that they are playing on a level playing field and their competitors can’t bend the rules to unfairly compete at the expense of the consumer.”

The province said during 2017 consultations on consumer protection laws Albertans identified the need for better protection when buying a car and more transparency when it came to auto repairs.

Highlights of the new regulations including ensuring auto businesses inform buyers of a vehicle’s history, such as previous use, ownership and details of damages, as well as things like providing a comprehensive bill of sale document and removing of advertising of a sold vehicle 14 days after sale.

“The new rules are about transparency and helping Albertans make informed decisions,” Malkinson said.

“This is about providing consistency across the industry, so consumers can be confident no matter where they go, they will have the same options available to them.”

Those found not complying could face up to $100,000 in penalties, although they aren’t typically that high, said Alberta Motor Vehicle Industry Council chairman Bill Burnett.

“As prescribed in the Consumer Protection Act, depending on the circumstances, it can be up to $100,000 (in penalties),” he said, adding they review around 10,000 calls of concern per quarter.

“Penalties aren’t normally in that range, but they can be very high. Part of the legislation that was important to AMVIC was the seven-day removing liens. One of the things AMVIC has been (in charge of ) is we have to go in and shut businesses down if they’re doing damage to consumers.

“Having an ability, or mechanism, that our investigations people can go in and lay charges and close a business are absolutely critical to protecting consumers.”

One of the most significant regulations regarding maintenance and repair will be mandatory written estimates with customer consent.

Ted Zylstra, owner of Braeside Automotive, has taken it a step further by sending photos and a brief video explanation of what work needs to be completed before it’s done.

“We’ll give you an inspection on email or text that will come and will also include the pictures to go with what your issue is,” he said.

“I think that goes a long way. When you see it, it’s much more than me just telling you. We don’t know how much you know about your vehicle, so we try to educate people on the maintenance on their vehicle.”