Ontario’s towing industry prepares for clampdown
Proposed rules would have operators obtain permission before charging for services
Ontario’s oft-criticized tow truck industry is being brought to heel, Consumer Services Minister Tracy MacCharles says.
MacCharles on Tuesday introduced proposed legislation — amending the Consumer Protection Act — to regulate the towing and vehicle storage industries in an effort to protect the motoring public from gouging.
“A number of serious concerns have been raised about the industry by consumers and by groups such as the Insurance Bureau of Canada,” MacCharles told reporters earlier.
There are approximately 1,200 tow truck operators and 3,000 tow truck drivers in Ontario.
Among other things, the Consumer Services minister said there have also been talks about mandatory criminal record checks for all tow trucker drivers and operators.
She said concerns range anywhere from tow truck drivers demanding motorists hand over hundreds of dollars in cash before hooking up their vehicle to having vehicles towed off to faraway lots where motorists are faced with “unexpectedly large” bills.
“These are the kind of unfortunate experiences we are trying to eliminate for drivers in this province,” MacCharles said.
MacCharles said besides this “dubious” behaviour, tow truck drivers have an extraordinarily high collision rate, 20 per cent compared to 1 per cent for other commercial vehicles.
She noted these accidents often happen as the tow trucks race to an accident scene.
The minister said there have also been allegations of tow truck drivers colluding with vehicle storage and body shop operators, which she says contributes to increased insurance premiums for everyone.
“Rates are directly linked to claim costs and reducing costs will help lower rates for Ontario drivers,” she said. The proposed legislation would require tow truck operators and storage providers to:
Obtain permission from consumers before charging for towing and storage services.
Post prices prominently and other information, including the operator’s name and contact information. Accept credit card payments. Provide an itemized invoice listing services provided and the total cost. The province is also proposing to include tow trucks in the province’s existing Commercial Vehicle Operator’s Registration, bringing new oversight to the industry. MacCharles said tow trucks currently are not registered with the Ministry of Transportation, “so that’s our first step.” She noted that, while 17 Ontario municipalities already license tow trucks, it is the government’s intention to bring in province-wide standards for licensing. “The bill is going to speak to licensing, registration,” MacCharles said.