New penalties for violating Motor Vehicle Safety Act
Oct. 13, 2023
Global Korean Post
-New penalties for companies or individuals who violate the Motor Vehicle Safety Act
On October 6, the government of Canada announced the coming into force of regulations allowing Transport Canada to fine persons or companies who violate the Motor Vehicle Safety Act.
Under the new regulations, penalties (which are similar to fines) can range up to $4,000 for an individual violating the Act, and up to $200,000 for a company.
Examples of possible violations that could lead to penalties include:
- A company or a person importing vehicles, child car seats, or tires that don’t meet Canadian safety standards;
- A company becoming aware of a safety defect in their products and not issuing a recall promptly, or issuing a recall that fails to adequately fix the problem; or
- A manufacturer failing to adequately test their products to ensure they meet applicable Canadian safety standards.
Penalties would apply per violation, meaning they could be stacked for multiple violations. For severe violations affecting multiple vehicles, tires, child restraint systems and booster seats, and certain types of equipment for use in the restraint of disabled persons – or those occurring over multiple days – Transport Canada could issue several penalties.
A number of factors will be used to determine the size of the penalty, including the harm or risk posed by the violation and the degree of negligence. Financial penalties are a proven and effective deterrent, and these regulations will help make our roads safer for all Canadians.
These new regulations bring road transportation enforcement in line with the rail, marine, and aviation sectors, which can already issue administrative monetary penalties.