In Budget 2015, the Government of Canada announced it would take measures to strengthen the Motor Vehicle Safety Act (MVSA). These measures are outlined in the new Safer Vehicles for Canadians Act, which will amend the MVSA and provide the Minister of Transport with new powers that are more closely aligned with the United States.
- order a company to issue a recall;
- require manufacturers to fix defective or non-compliant vehicles and equipment at their expense;
- order a manufacturer or importer to prevent the retail sale of defective or non-compliant vehicles;
- include more detailed information in a Notice of Defect and Notice of Non-compliance;
- require companies operating in Canada to be more aware of foreign defects and issues of non compliance for vehicles that are similar to those sold in Canada;
- fine manufacturers up to $200,000 per day, per violation, with no cap, for any actions that contravene the MVSA; and
- provide Transport Canada inspectors with new powers to collect more information for enforcement and investigation activities.
Prior to the Safer Vehicles for Canadians Act:
- Only a manufacturer could order a recall in Canada.
- MVSA violations were addressed through prosecution, which is time-consuming, labour intensive, and costly.
- The Minister of Transport could only order a manufacturer to notify Canadians that their vehicles were subject to a recall.
Additional links:
June 2015
