Used car and repair business fined $10,000 by AMVIC

The Alberta Motor Vehicle Industry Council’s $10,000 administrative penalty against a used car and repair business in Stony Plain, Alta., has been upheld in a decision dated June 8, 2016.

The original penalty, issued to Xtreme Truck & Toys Ltd. in the fall of 2015, followed an AMVIC investigation and review.

An independent appeal board appointed by the Minister of Service Alberta found Xtreme Truck & Toys Ltd., sold a truck to a consumer without providing a Mechanical Fitness Assessment. Instead, the business gave him an assessment 10 days after the deal was signed, which is contrary to the Vehicle Inspection Regulation.

In Alberta, consumers must be given a complete Mechanical Fitness Assessment before entering into a contract to buy a used vehicle from a business. In this case, the appeal board found the late Mechanical Fitness Assessment was also incomplete.

“Mechanical Fitness Assessments are an important tool, in addition to others, that consumers should review and consider before buying a used vehicle,” John Bachinski, executive director of AMVIC said.

The consumer had also bought a warranty for the truck which the appeal board found was never delivered– an unfair practice under the Fair Trading Act.

“Had that warranty been provided, the more than $9,000 that the consumer had to pay for diagnosis and repairs may have been covered. Instead, the consumer had to pay out of pocket less than a year after buying the truck,” Bachinski said.

AMVIC’s Director of Fair Trading (as delegated) can impose an administrative penalty against a person who has contravened Alberta’s Fair Trading Act or has failed to comply with a term or condition of their AMVIC business licence.

“We work hard to ensure that automotive consumers are protected. If the laws are breached, those responsible are held accountable,” Bachinski said.

www.amvic.org