The VSA is responsible for the administration and enforcement of the Motor Dealer Act (MDA) and its regulations, and the Business Practices and Consumer Protection Act (BPCP Act) as it relates to the retail sale of cars, light trucks, motorcycles and recreation vehicles to consumers.
The VSA uses the following “progressive enforcement” options:
1. A verbal or written warning (inspection infraction or investigation issue).
2. Placing conditions on a dealer or salesperson licence – With written notice, the Registrar may place conditions on the registration of a motor dealer or licence of a salesperson at any time and without a hearing. Conditions could include providing increased security to the Registrar, prohibiting consignment sales or to restrict the activities of a salesperson at a dealership, and etc. [Section 4(6) of the Motor Dealer Act and section 4(3) of the Salesperson Licensing Regulation].
3. A violation ticket under the Motor Dealer Act and the Violation Ticket Administration and Fines Regulation.
4. An undertaking – A voluntary agreement by a motor dealer or salesperson with the Registrar of Motor Dealers to abide by the law, to pay consumer damages or unwind a transaction (if legally applicable) and pay for the VSA’s investigation and hearing costs (if applicable). An undertaking may be issued for a breach of the Business Practices and Consumer Protection Act. An undertaking may be filed in the B.C. Supreme Court and once filed is an order of that Court except for purposes of appeal [Section 154 of theBusiness Practices and Consumer Protection Act].
5. A Registrar’s compliance order - After conducting a hearing, the Registrar of Motor Dealers may make an order that a motor dealer or a salesperson pay a consumer damages or unwind a transaction (if legally applicable) because of their breach of the Business Practices and Consumer Protection Act. The order may require the motor dealer or a salesperson to abide by the law or take other steps. The order may also require the motor dealer or salesperson pay the Authority’s investigation and hearing costs. A Registrar’s compliance order may be filed in the B.C. Supreme Court and once filed is deemed an order of that Court except for purposes of appeal. Where two persons are named in a compliance order, they are deemed to be jointly and severally liable to make payments [Section 155 of the Business Practices and Consumer Protection Act].
6. An administrative penalty – After conducting a hearing, the Registrar may issue an administrative penalty of up to $50,000 on a corporation or $5,000 on an individual where they have breached portions of the Business Practices and Consumer Protection Act or failed to comply with an undertaking or compliance order. The penalty may be imposed on a per day basis where the infraction is ongoing (such as advertising). An administrative penalty may be filed in the B.C. Supreme Court and once filed is deemed an order of that Court except for purposes of appeal [Sections 164-168 of the Business Practices and Consumer Protection Act].
7. Issuance of freeze orders – Where the Registrar has commenced an investigation and believes it is necessary to protect persons dealing with a motor dealer, he may issue a property freeze order on the motor dealer to refrain from dealing with any of its property as well as on certain persons who are holding property of a motor dealer and order that they continue to hold that property in trust [Section 28 of the Motor Dealer Act and section 158 of the Business Practices and Consumer Protection Act].
8. Apply to the courts to place a receiver in charge of a dealership – Where the Registrar has commenced an investigation, he may apply to the B.C. Supreme Court for the appointment of a receiver, receiver-manager or trustee of the property of a motor dealer [Section 159 of the Business Practices and Consumer Protection Act and section 27 of the Motor Dealer Act].
9. A court (compliance) order – On application to the B.C. Supreme Court, the Registrar may seek the statutory equivalent of an injunction to comply with the law [Section 31 of the Motor Dealer Act].
10. Suspension or cancellation of a dealer/salesperson licence – Upon giving a motor dealer or salesperson an opportunity to be heard, the Registrar may cancel their registration/licence or suspend their registration or licence for a period of time. The Court’s generally view cancelation of a registration/licence as an option of last resort requiring evidence that a person’s future conduct “will not be carried out in accordance with law, honesty and integrity.” [Section 5 Motor Dealer Act and section 6 Salesperson Licensing Regulation].
Certain situations may require going directly to any enforcement step.
Enforcement Actions - Tickets
Information about tickets since June 1, 2004 is available through the Tickets page.
Compliance Undertakings
An undertaking is a voluntary acknowledgement by a motor dealer or a salesperson that they have violated the Business Practices and Consumer Protection Act (section 154). Review Compliance Undertakings here.
Registrar's Compliance Decisions
Decisions and rulings made by the Registrar of Motor Dealers, both written and oral, may be viewed on the Compliance Decisions page.
Judicial Review of Registrar Compliance Decisions
A decision of the Registrar of Motor Dealers may be reviewed by the B.C. Supreme Court when a person petitions that Court to conduct a judicial review. The page that lists the decision or orders of the BC Supreme Court after its review of a Registrar’s decision may be viewed here.
Disclaimer: This section of the website is still under construction and will be updated on a continual basis.
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