Bill S-2, commonly known as the Vehicle Recall legislation, received Royal Assent and has been signed into law by the Governor General of Canada.
Prior to the official signing, automakers were the only ones capable of issuing a vehicle recall in Canada to address safety concerns — an issue that has since changed.
“Canadians may be surprised to know that prior to the Strengthening Motor Vehicle Safety for Canadians Act (Bill S-2), only a manufacturer could issue a vehicle safety recall in Canada. This legislation allows the government to proactively issue safety recalls in the interest of Canadians,” said The Honourable Marc Garneau, Minister of Transport.
The Act provides the Minister of Transport with the power to:
- Order a company to recall a vehicle to correct a defect;
- Order a company to pay for the cost of repairs (saving consumers from bearing the cost);
- Order a company to conduct tests on a vehicle and to provide the results back to the Minister;
- Order a company to fix a new vehicle before it’s sold; and
- Negotiate a settlement with a company which is alleged to be in violation of the Motor Vehicle Safety Act.
The Minister of Transport also has the ability to perform more in depth vehicle inspections if there is a safety concern, and impose fines of up to $200,000 to manufacturers (per violation) for “any contraventions of the Motor Vehicle Safety Act.” The exact range of the administrative monetary penalties will be established during the regulatory development process, according to Transport Canada’s news release.
