|Alberta’s NDP Government, through the Minister of Service Alberta made changes to the Alberta Consumer Protection Act (formerly Fair Trading Act) that will come into effect on October 31, 2018.
Changes to the Automotive Business Regulations affects how each dealership will sell or repair vehicles. These new disclosures are in addition to previous disclosure requirements.
Item 1) Vehicle History Information
This is a new section added to the regulations.
Section 31.1(1) A business operator engaged in automotive sales must disclose the following information in accordance with subsection (2), on the basis of information the business operator knew or ought to have known:
a) whether the vehicle has been brought back by the manufacturer under the Canadian Motor Vehicle Arbitration Plan;
b) whether the vehicle has sustained damage caused by fire;
c) whether the vehicle has sustained damage caused by immersion in liquid to at least the level of the interior floor boards;
d) whether the vehicle has been used as a police car or an emergency vehicle;
e) whether the vehicle has been used as a taxi cab or limousine;
f) whether the vehicle has been previously owned by a rental vehicle business or used as a rental vehicle on a daily or other short term basis;
g) whether the vehicle has, at any time, been assigned a status in one of the following categories under the Vehicle Inspection Regulation (AR211/2006) or an equivalent status under the laws of another jurisdiction;
(i) salvage motor vehicle
(ii) non-repairable motor vehicle
(iii) unsafe motor vehicle
h) whether the vehicle has been damaged in an incident or collision where the total cost of repairs fixing the damage exceeded $3000 and, if the repairs were carried out by the business operator, the total costs of repairs;
i) whether the vehicle was registered in any jurisdiction other than Alberta immediately before it was acquired by the business operator and, if so,
(i) the name of the jurisdiction in which the vehicle was previously registered,
(ii) whether the vehicle was required to be inspected prior to registration in Alberta, and
(iii) whether the vehicle passed or failed any required inspections.
*** These new nine (9) categories of vehicle history disclosure must to the best of your knowledge be disclosed to all customers prior to entering into a bill of sale. If you enter a bill of sale and disclose the vehicle history information at that time, you will be guilty of improper vehicle disclosure.
31.1(2) The business operator must disclose the information required under subsection(1) in a clear and legible manner;
(a) in any online advertisement for the vehicle;
(b) on any sales tag affixed to the vehicle, and;
(c) in writing to the consumer before purchase
*** The nine (9) items of required vehicle history disclosure must be shown on all ads about the vehicle - including your website, newspaper ads, Trader ads, etc.
1) In discussions with AMVIC it was suggested that dealers create and use a Vehicle History Disclosure checklist that be used at the time your sales team discuss the vehicle with the consumer. Today, September 25th, AMVIC sent out an email to all AMVIC businesses and have included several checklists for dealer use. Please review it and print off the checklists and use in your sales process.
2) Calls from a couple financial institutions regarding the new vehicle history disclosure requirements have them very worried on dealer compliance. They suggested that a checklist may be mandatory for the approval of the financial contracts.
3) On the MDA Chairman’s Tour last week it was suggested that dealers could implement a Vehicle History Disclosure document for consumers who are trading in a vehicle at time of appraisal.
Item 2) Changes to Vehicle Repairs Automotive Business Regulations
31.6(1) A business operator engaged in automotive repairs must, on request from the consumer, provide an estimate for the installation of parts or equipment in or on a vehicle or the repair or service of a vehicle.
(2) An estimate under subsection (1) must be in writing and, subject to subsection (3) must contain the following information:
a) a description of the proposed work;
b) the estimated total cost of the proposed work, including labour and parts or equipment.
(3) If the information in subsection (2) cannot be provided because diagnostic work is required, the estimate must state the estimated maximum cost of the diagnostic work.
Authorization of Work
31.7(1) A business operator engaged in automotive repairs must not install parts or equipment in or on a vehicle or repair or service a vehicle unless the consumer has provided authorization.
(2) An authorization under subsection (1) must be provided in writing, subject to section 31.8.
(3) An authorization must contain the following information;
a) the name of the consumer, or the consumer’s agent, giving authorization;
b) the date of authorization;
c) a description of the work that the consumer, or the consumer’s agent, authorizes to be carried out;
d) the estimated total cost of the work described in clause (c) and confirmation that the consumer, or the consumer’s agent, authorizes that cost.
Authorization Not In Writing
31.8 An authorization of work may be in a form other than in writing if the business operator records the following information in writing;
a) the information required under section 31.7(3);
b) the time at which authorization is given;
c) the method by which authorization is given;
These are the Automotive Business Regulation changes which come into effect on October 31, 2018 in the areas of Vehicle History Information and Vehicle Repairs.
A separate email will be sent regarding the required changes to the Bill of Sale once AMVIC has reviewed and approved. You can expect it very soon.
***Click here for the PDF form of the Alberta Automotive Business Regulation effective June 28, 2018. The changes in this email blast are not included in this regulation until a new is released after October 31, 2018. However, all the regulations in this PDF copy remain as law.