MPI Changes How It Enforces Rules For Auto Dealers, Garages

By Vera-Lynn Kubinec

When you buy a car at an auto dealership, you want to know whether the dealer has a good track record or a sketchy one. Likewise, if you need to get a safety inspection done on a vehicle, you want to know if you can count on the garage doing the work.

In 2010, the Manitoba government announced a new era of transparency when it said it would start naming car dealerships and garages that ran afoul of regulations.

The move followed a number of stories by the CBC News I-Team that highlighted consumers' problems with buying cars.

But after a steady stream of offending dealers and garages being sanctioned and named on Manitoba Public Insurance's website, the information abruptly stopped coming more than a year ago.

The last time there was a new sanction posted on the site was in April 2013.

So what's going on?

MPI will still publicize sanctions. It's just that it hasn't sanctioned any garages in nearly a year and a half, even though garages and dealers are continuing to run afoul of regulations.

Spokesperson Brian Smiley says the agency has changed the way it enforces the rules for dealers and inspection stations, from a "punitive, adversarial" approach to an educational one.

"That's resulted in no sanctions being listed due to the fact the mechanics, the inspections stations, have realized that education and cooperation is the best way to go. From our perspective we always want to work in partnership with the inspection stations," Smiley told CBC News.

The sanctions that were posted between November 2010 and April 2013 were for wide-ranging offences such as:

• Inaccurate or incomplete vehicle inspections.
• Making false statements.
• Not disclosing a material fact on a vehicle sold.
• Failing to act with honesty and integrity, including odometer tampering.

The mechanics and dealers had their business permits suspended for periods ranging from three months to five years, and some of them permanently.

Sensing that consumers needed better protection when doing business with garages and auto dealers, the NDP government announced in 2010 that it would amend the Drivers and Vehicles Act to allow publishing the names of offenders and the penalties against them.

The government even said at the time that its legislation had the support of the auto sales industry, including the Manitoba Used Car Dealers Association and the Manitoba Motor Dealers Association.

The minister responsible for MPI, Andrew Swan, announced the change saying, "These amendments provide transparency."

"The protection of consumers must always remain a priority and the publicizing of names and sanctions goes a long way in accomplishing this goal," Swan said in a July 2010 release.

Education the best way, says MPI

So after three years, why did MPI shift away from penalizing the offenders?

"Education is the best way to correct errors that were taking place," Smiley explained.

He said the number of training sessions provided by MPI's Vehicle Standards and Inspections branch has increased from 253 in 2012 to 442 in 2013.

There are about 1,500 authorized inspection stations in the province and nearly that many auto dealers. MPI gets complaints from the public about them.

Smiley said in 2013 there were 178 valid complaints, including 30 against dealers and 148 against garages. Warning letters were issued to 42 operators.

A spokesperson for Swan said the lack of suspensions demonstrates the legislation is working.

"Since the legislation was introduced, many of the inspection stations that weren't offering acceptable services have left voluntarily or because of sanctions," said a government statement to CBC News, noting that complaints from the public have dropped significantly.

The province said the types of infractions also are tending to be less serious.

Asked if the new approach is "softer", Smiley disagreed. He said the public can have confidence in the results.

"The consumer can take satisfaction in knowing that Manitoba Public Insurance is working very closely with the inspection stations," he said.

But what about the transparency the minister talked about in 2010?

"Well, there is transparency in the sense that if a station does receive a show-cause hearing and is suspended and receives a sanction, it is listed on the [MPI] website," Smiley said.

From the province's viewpoint, nothing has changed and the names of anyone sanctioned will continue to appear on the website when warranted.

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MPI Changes How It Enforces Rules For Auto Dealers, Garages
MPI Changes How It Enforces Rules For Auto Dealers, Garages