By Tom Davis
Edmonton, Alberta — December 4, 2017 — Consumer protection is of increasing importance, but at what cost for small business operators? That will be the question posed to Alberta’s provincial government after it proposed a new bill to beef up consumer protection laws. Collision repairers, however, are confident any new regulations will not affect them.
The ‘A Better Deal for Consumers and Businesses Act’ would allow the government to create a new consumer bill of rights and introduce tighter rules around the purchase of products and services. It has been proposed to deal with the increase in online shopping and internet scammers, but it will also include greater protection for consumers of retail products and services, including those in the automotive repair industry.
“When Albertans buy a car or have theirs repaired, they deserve to have a straightforward experience,” said Service Alberta Minister Stephanie McLean. “These changes would help Albertans make more informed decisions, protect their pocketbook and value the work of Alberta’s many trustworthy automotive businesses.”
As part of the proposed bill, auto repair shops will have to provide written estimates to consumers who request them, and create minimum warranty protections for repairs.
The new legislation is likely to help out legitimate repairers who are already following the proposed regulations, although it is unlikely to affect the way they operate. “We are already giving both written estimates and include warranties on repairs to our consumers, so this will not affect the way we operate at all,” commented Steve Hammond, Owner of CSN-Morinville. “Currently legitimate repair businesses may initially appear to be overcharging because following OEM procedures and scanning vehicles etc., pushes the price up for both us and the consumer, whereas businesses not following these guidelines may be doing worse repairs but for far cheaper. Hopefully new regulations will enforce to consumers that we are doing repairs in the right way, and using methods to ensure vehicle safety is restored for the client.”
The general consensus, however, is that collision repair shops are indifferent to the proposed legislation, with any regulations that come into place unlikely to affect their business. Bruce Hemstreet, Owner of CARSTAR Lethbridge, told Collision Repair magazine: “I don’t doubt there are people operating without estimates and warranties, but I can’t see how this will affect any legitimate businesses. These are things we have been offering since we started and I personally do not know a single collision repairer who doesn’t.”
Sean Kell, Owner of CSN-Okotoks, believes the only way for consumers to receive greater protection is for more education. He commented: “Written estimates and warranties have been around for more than 20 years and I can’t see this having an affect on the way repairers operate. Consumers have to become more educated about repairs and that is what’s going to really protect them.”
Automotive dealerships will have to disclose information on the history of a car or truck being sold, such as if it has been in an accident or used as a taxi, and a standardized bill of sale will be required.
The bill would also transition Alberta’s auto regulator, the Alberta Motor Vehicle Industry Council (AMVIC), into a public agency. This would make AMVIC more responsive to consumers by ensuring it follows the same rules of transparency and accountability as the rest of Alberta’s agencies, boards and commissions, according to the government.
Collision repairers may already offer what the government is proposing to bring in as new regulation, but if it is to come into affect repairers should take extra caution to document they have met the regulations. If not, repairers could face fines of up to $300,000, or two years in jail. It’s unclear what affect new legislation will have on repairers, but if the businesses we spoke to our anything to go by then it seems like any changes will be minimal.
