New automobile dealer legislation that recently received second reading in the House of Assembly sets minimum standards for automobile dealers and is designed to enhance road safety and consumer protection.
Sections of the Highway Traffic Act that involve automobile dealers had not been updated since they were introduced in 1988. There were also regulations pertaining to automobile dealers that had previously been found in the Licencing and Equipment Regulations under the Act. The amendments consolidate all provisions related to automobile dealers into one section to ensure readability and understanding.
Changes to the legislation include standardization of terminology; authority to inspect dealerships; requirement for a Certificate of Conduct or Criminal Records Check for directors or officers of corporations and owners of sole proprietorships; requirement for a Certificate of Good Standing from the Registry of Companies when the dealership is incorporated; and the requirement for the payment of fines accumulated for vehicles owned and operated by a dealership. The additional duties of a dealer were also added, including the requirement for used vehicles to be inspected prior to being sold for road use.
Prior to introducing the amendments, Service NL consulted with the Automobile Dealers Association of Newfoundland and Labrador (ADANL). Further consultations were conducted via correspondence with dealers who are not members of ADANL. Stakeholders were supportive of the proposed changes and informed they would be further consulted on specific regulations that would be put in place, following the introduction of changes to the Act in the House.
Quotes
“The changes we introduced to the Highway Traffic Act support a responsible and accountable automobile dealer sector, while also focusing on enhanced vehicle safety. In addition to enhanced consumer protection, setting minimum standards for all dealers will also reduce potential for harm when it comes to vehicle safety. This aligns with our government’s commitment to continue to strengthen the Highway Traffic Act.”
Honourable Tom Osborne
Minister of Service NL
“Setting minimum standards for all dealers will reduce the potential for harm when it comes to vehicle safety. The Act, as it stands today, is outdated legislation and it is good to bring it up to today’s standards. We look forward to working further with government to ensure the act reflects current industry norms.”
Marian Templeton
Automobile Dealers Association of Newfoundland and Labrador
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Learn more
An Act to Amend the Highway Traffic Act
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Media contacts
Krista Dalton
Service NL
709-729-4748, 685-6492
kristadalton@gov.nl.ca
Marian Templeton
Automobile Dealers Association of Newfoundland and Labrador
marian.templeton@adanl.ca