New legislation introduced for stronger vehicle recall powers

Safer Vehicles for Canadians Act includes new recall powers and fines for manufacturers

OTTAWA, June 3, 2015 /CNW/ - Today, the Honourable Lisa Raitt, Minister of Transport, introduced legislation in the House of Commons to better protect Canadian motorists through new powers to order vehicle recalls. This new legislation was previously announced in Budget 2015.

These proposed new powers — introduced through the Safer Vehicles for Canadians Act — allow the Minister to order a company to issue a recall and require manufacturers to fix defective or non-compliant vehicles. The Minister may also order manufacturers or importers to pay for repairs and ensure new vehicles are fixed before they are sold to the public.

In addition, manufacturers and importers can face fines of up to $200,000 per violation, per day, with no maximum cap through new administrative monetary penalties. These fines are an alternative to prosecution to help address safety issues quickly.

This legislation will complement the powers given to the Minister last year to order a company to issue safety defect notices to consumers, further aligning Canada's recall process with the U.S.

Quick Facts

• Transport Canada's vehicle recalls database is available at www.tc.gc.ca/recalls.
• In 2014, legislative changes were made to provide the Minister with the power to order companies to issue a Notice of Safety Defects in order to keep Canadians informed of issues with their vehicles. Previously, only companies could decide to issue notices.
• Fines for manufacturers — also known as administrative monetary penalties — already exist in the rail, marine, and aviation sectors.

Quotes

"Because the safety and security of Canadians is my top priority, the decision to recall vehicles cannot rest exclusively in industry's hands. This new legislation will strengthen vehicle recalls in Canada and allow me to protect Canadians by quickly addressing automobile safety issues."

The Honourable Lisa Raitt
Minister of Transport

Associated Links

• Backgrounder: Safer Vehicles for Canadians Act
• Budget 2015
• Motor Vehicle Safety Act

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SOURCE Transport Canada