Family Services and Consumer Affairs Minister Gord Mackintosh announced the proclamation of the Business Practices Amendment Act (Disclosing Motor Vehicle Information). The act and accompanying regulations are aimed at protecting buyers of new and used vehicles through disclosure of specific information about the vehicle.
“We know the majority of car dealers are honest and don’t withhold information from their customers. Unfortunately, we also know that sometimes, consumers are misled when buying vehicles. We want to avoid situations where consumers discover important facts about their car after they have purchased it,” Mackintosh said. “These new measures will ensure that important information about the history and the condition of the vehicle is given to consumers before they sign their contracts and is also included in the contract.”
This legislation and regulatory changes take effect Dec. 31, 2011, and will require dealers to provide more complete information about the history of a vehicle, making it easier for buyers to make well-informed purchase decisions, the minister said. This would include mandatory disclosure of a variety of facts about the vehicle, for example, if:
• it was previously used as a taxicab, police car or rental car,
• it had significant repairs,
• it was declared an insurance write-off,
• it was damaged in a flood,
• it was declared a lemon in another jurisdiction.
“Apart from a home, a new or used vehicle can be the most expensive item we ever buy,” said Mackintosh. “Consumers need clear information about the vehicle in order to make an appropriate decision to purchase.”
Penalties for failure to comply with the new regulations range from fines to imprisonment and/or court-ordered consumer compensation, he said. Manitoba Public Insurance may also impose sanctions against the dealer’s permit for violations under the Business Practices Act.
A second phase of regulations will be introduced to address advertising of motor vehicles sales including all-inclusive price rules. Manitoba will also enhance the information disclosure rules to include vehicle recall information when a reliable source of that information for specific vehicles becomes available, Mackintosh said.
The proposed changes are part of Let’s Make a Better Deal, Manitoba’s five-year consumer protection strategy. For more information on what is required, visit the Consumer Protection Office website at www.gov.mb.ca/fs/cca/cpo.
