Financial and Consumer Affairs Authority of Saskatchewan

FCAA is Saskatchewan’s financial and consumer marketplace regulator.

Bulletins

  • Bulletins

    Vehicle Dealer Alert - Disclosure Checklist

    March 8, 2018 - The Consumer Protection Division of the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) would like to remind you of your disclosure obligations within the Vehicle Dealer Regulations of The Consumer Protection and Business Practices Regulations.

    What is a disclosure?

    A disclosure is a fact or detail about the motor vehicle related to a its past use, history or condition.

    Required disclosures

    Every dealer must disclose the following in writing all material facts including the following to the prospective purchaser or lessee before the contract is entered into. 

    • In the case of a new vehicle, whether the vehicle has sustained damage requiring repairs costing more than 20% of the asking price of the vehicle;
    • Dealers must provide buyers with a current SGI VIN search for Saskatchewan (they must also provide information about the availability of VIN searches of other jurisdictions for vehicles previously registered outside of Saskatchewan);
    • If a vehicle was used as a taxi, for law enforcement, as an emergency vehicle or for racing;
    • If the vehicle was owned by a rental company in the previous 24 months;
    • If the vehicle was previously registered in a jurisdiction other than a jurisdiction in Canada within the previous 36 months;
    • Whether the vehicle has been brought into Canada specifically for the purpose of resale;
    • If the odometer doesn’t represent the true distance traveled by the vehicle, or has been altered or replaced;
    • The location of the repair facility if greater than 80 kilometres from the dealer’s premises; and
    • If a drive-away price has been advertised or displayed, the drive-away price 

     

    In addition to the above

    Every dealer must disclose all material facts, as known by the dealer or that the dealer should reasonably be expected to know at the time the vehicle contract is entered into. A best practice to reduce business risk and liability is to provide “full disclosure” – disclose and declare everything and provide all available details to the consumer.

    Disclosure MUST be in writing

    Providing disclosure of material facts verbally does not meet the requirement. Disclosure MUST be made in writing in a clear, comprehensible and prominent manner.  Given this, our office has developed the attached checklist to assist you in meeting your obligations. Note: timely disclosure of information is required; this means the contract (including the information required to be disclosed) must be given to the customer for review before it is signed.

     

    Failure to Disclose has Consequences

    Failure by the dealer to comply with the disclosure requirements, may result in a consumers immediate right to cancel the contract and return the vehicle. Should the consumer proceed in this fashion, the consumer may be entitled to recover the full purchase price of the vehicle and to recover damages or any other losses the consumer has suffered that were reasonably foreseeable as liable to result from the failure to disclose or the false or misleading disclosure.

    Learn More

    Email Alerts are the primary source of communication between the Regulator and the vehicle sales industry.  They feature regulatory updates, legislation clarifications and industry-specific news. If you have questions or would like to subscribe, please contact vehicledealers@gov.sk.ca

     



    Selling Non-Roadworthy Vehicles?

    January 12, 2018 - The Consumer Protection Division of the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) has received a number of questions from dealers about their obligations when selling vehicles deemed to be non-roadworthy.

    What are the rules?

    Section 5-20 (2) The Consumer Protection and Business Practices Regulations (the Regs) states: 

    No dealer shall sell or lease to a consumer a vehicle that is not equipped as required by section 114 of The Traffic Safety Act unless: 

    (a) the dealer has identified on the vehicle contract that the vehicle is not equipped as required by that section; and 
    (b) the consumer has acknowledged in writing that he or she does not intend to drive the vehicle on a highway until the vehicle is equipped as required by that Act

    Section 114 of The Traffic Safety Act  (the Act) states:

    No person engaged in the business of buying, selling or exchanging vehicles shall sell or give in exchange a vehicle that the person to whom it is sold or given intends to drive on a highway if the vehicle is not equipped in accordance with this Act and regulations.

    When do they apply?

    Vehicle dealers must designate a vehicle as being non-roadworthy if it is in non-roadworthy condition, and auctioneers must disclose this fact to buyers prior to the sale. Sellers are required to have the purchaser acknowledge in writing that the vehicle is non-roadworthy and that the vehicle will not be driven on a public roadway or highway until the vehicle is equipped as required by the Act. The seller is obligated to maintain record of this as proof the purchaser made this acknowledgment. 

    As an example, seller may use the attached form, or place such a notice directly on the bill of sale to comply with section 5-20 (2) as noted above. 
    Notice of a vehicle being in non-roadworthy condition is not to be used as a general disclaimer and, without listing any specific defects, does not avoid the statutory and express warranty provisions under The Consumer Protection and Business Practices Act.

    The Consumer Protection Division and SGI take the position that when a vehicle dealer lets a purchaser drive a vehicle off the lot, or away from the auction sale yard, the seller must have concluded that the vehicle is in compliance with The Traffic Safety Act and therefore is safe to drive on a public roadway or highway. 

    Contact Us:

    Email: vehicledealers@gov.sk.ca
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779 
    Financial and Consumer Affairs Authority
    Suite 500 - 1919 Saskatchewan Drive
    Regina, SK S4P 4H2

     



    Unlicensed Vehicle Dealer Fined More Than $18,000

    December 7, 2017 - On November 27, 2017, Kyle Martin of Humboldt, was sentenced to pay a total fine of $18,200, including a victim surcharge, after pleading guilty to 13 counts of operating as a vehicle dealer without a licence contrary toThe Consumer Protection and Business Practices Act.

    Last year, the Financial and Consumer Affairs Authority (FCAA) received information about Martin’s unlicensed sales activity, also known as “curbing” or “curbsiding”.  On two separate occasions, he was directed to cease and desist his unlicensed auto sales activities by FCAA’s Consumer Protection Division, but continued to operate without a licence.

    A curber is someone who is in the business of selling vehicles without a licence.  This is an illegal activity.  Curbers often pose as private sellers who commonly misrepresent the vehicles they sell and may not disclose the vehicle’s history to a buyer.

    The Act requires all vehicle dealers be licensed.  The purpose of the licensing regime is to provide protection to consumers by overseeing the industry.

    Licensed vehicle dealers are required to provide financial security to FCAA, and are subject to inspections, among other requirements.

     


     

    Negative Equity Disclosure

    August 9, 2017 - The Consumer Protection Division of the Financial and Consumer Affairs Authority of Saskatchewan (FCAA) wants dealers to know the risks of failing to disclose negative equity to consumers when taking a trade-in on a vehicle sales transaction.

    In the case of negative equity financing, consumers need to understand all details of their contract, including the value of the loan, the value of their trade and the difference between the two.  If negative equity is part of the transaction, our office recommends that it be reflected as a separate line item on the bill of sale.

    Our office takes the position that the price listed on the sales agreement for the purchase of a vehicle and the price represented for the trade-in will be deemed to be the values agreed on by both parties to the transaction.  As such, it is essential that the contract accurately reflect the true nature of the transaction.  Any negative equity should not be buried in other products or services, nor should the price of the trade-in be artificially inflated. 

    Buybacks and Returns:

    Dealers should note that if a rescission is triggered under the legislation, the dealer will be required to cancel the transaction and return the traded vehicle.   If the traded vehicle cannot be returned in a satisfactory condition, the dealer will be required to return the full value of the trade as stated in the contract. This means a dealer could be forced to return more money to the consumer than they paid for the vehicle, if negative equity is not accurately disclosed in the contract.

    For more information contact:

    Email: vehicledealers@gov.sk.ca 
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779

     


     

    Consumer Alert - Vehicle Dealer Pleads Guilty

    June 13, 2017 - On June 5, 2017, Kyle Martin pleaded guilty at Humboldt Provincial Court to 13 counts of operating as a vehicle dealer without a licence.

    Last year, the Financial and Consumer Affairs Authority (FCAA) received information about unlicensed sales activity.

    Martin was previously directed to cease auto sales activities by the FCAA’s Consumer Protection Division.

    Sentencing was adjourned to August 14, 2017.

     


               
    Compliance Order - Acura Centre of Saskatoon

    Feb. 16, 2017 - the attached compliance order that was issued to Kelly and Bell Holdings LTD. DBA - Acura Centre of Saskatoon.

         


       

    Compliance Order - Capital GMC Buick Cadillac Ltd.

    Feb. 8, 2017 - the attached compliance order that was issued to Capital GMC Buick Cadillac Ltd.

     


     

    Alert - Auto-debt relief program not authorized by government 

    Feb. 10, 2017 - It has been brought to the attention of the Financial and Consumer Affairs Authority (FCAA) there is a marketing company attempting to do business with Saskatchewan dealers by promoting the “Saskatchewan Auto Debt Relief Program.”

    This “program” operates with business practices that violates The Consumer Protection and Business Practices Act (the Act). Information received suggests that the advertising materials typically distributed appear to imply government involvement in this program, which is not the case. Any information provided to consumers that may mislead, deceive or take advantage of consumers is a violation of the Act.

    The advertisements at issue promote a program called “The Saskatchewan Auto Debt Relief Program.” They suggest that it is a provincially supported program across Saskatchewan. The advertisement further suggests that the program is “semi-privately funded” which suggests government involvement.

    Regulatory Action:

    Dealers found to be committing an unfair business practice such as deceiving, misleading or taking advantage of a consumer will face regulatory action which may include the cancellation of their vehicle dealer licence.

    As licensed dealers in Saskatchewan that supplies goods and services to consumers, you have the obligation to carry out your business practices in a way that conforms with provincial legislation. It is our view that the above referenced advertising is misleading and could lead consumers to believe that the program is affiliated with the government.

    Learn more about unfair practices:

    Sections 6 and 7 of The Consumer Protection and Business Practices Act.

    Contact Us:

    Email: vehicledealers@gov.sk.ca
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779 

     


     

    Curbers Are Not Good for Consumers or Licensed Dealers

    Nov. 12, 2016 - The new vehicle dealer regulations in The Consumer Protection and Business Practices Act (CPBPA) prohibit a person from selling and leasing vehicles without a licence (curbing).

    A curber is someone who is in the business of selling vehicles, without a licence. The word “curber” itself comes from the practice of parking vehicles on the side of the road/curb with a “For Sale” sign.

    These vehicles may have serious safety deficiencies that put consumers at risk.  When consumers buy from curbers, they are not provided with the same protections offered by the CPBPA.

    The regulations also prohibit the sale of vehicles by licensed dealers to curbers.

    Please share the anti-curber campaign with your staff.

    Licensed dealers can help cut down on curbing activities by reporting known-curbers to the Consumer Protection Division.

    Email:  vehicledealers@gov.sk.ca
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779

            


     

    Selling To Curbers Is Illegal

    April 2016 - As a result of a complaint FCAA has become aware of a number of dealers wholesaling vehicles to unlicensed individuals, also known as curbers. This is contrary to section 5-20 (1) of the Consumer Protection and Business Practices Act regulations.

    Curbers are people who are in the business of selling vehicles for profit without a licence.  Curbers don’t just pose a threat to the car-buying public; they pose a threat to the industry as a whole by lowering consumer confidence.

    Help us reduce and eliminate these threats and avoid doing business with curbers.  You are reminded that as a dealer supplying curbers with inventory is illegal and could lead to sanctions, charges and/or loss of your vehicle dealer licence.

    FCAA recommends that dealers take the necessary precautions to ensure they are not supplying curbers with inventory. This includes:

    • Verify that all vehicles sold are registered in the name of the buyer before the vehicle is released. Curbers typically won’t register vehicles in their names. They may offer to do the transfer themselves but will keep the vehicle in the selling dealer’s name until it’s sold to an unsuspecting buyer.
    • Verify that the dealer is registered with FCAA.  If a buyer claims to be from another dealer or wholesaler, verify their registration on FCAA’s website by using FCAA 411 here or ask for a copy of their vehicle dealer licence. By law, they must present it to anyone asking to see it. If they can’t produce one, don’t conduct business with them and report them to FCAA.

    For more information contact:

    Email:  vehicledealers@gov.sk.ca 
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779 

     



    New Deposit Rules

    April 2016 - New Vehicle Dealer Regulations came into effect on Feb. 1, 2016. Do you know about the new rules for taking deposits?

    Prior to the sale contract, the new Vehicle Dealer Regulations place a limit on the deposit collected by dealers from a prospective buyer. Deposits may not be greater than 2 per cent of the list price of a vehicle before a purchase is made.

    A deposit cannot be kept unless the dealer needs to defray the cost of acquiring a vehicle not in his or her possession at the time the deposit was taken. If a deposit is to be returned, it must be in the same form it was provided, for example, cash must be paid back in cash.

    These rules only apply to deposits taken before a sales contract is finalized. Once the buyer and the dealer have signed the contract, the amount of or the return of the deposit is governed by the contract clauses.

    Learn more about the vehicle dealer regulations or contact the Consumer Protection Division at:

    Email: vehicledealers@gov.sk.ca
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779 

        



    New Vehicle Disclosure Rules

    April 2016 - New Vehicle Dealer Regulations will came into effect on Feb. 1, 2016. Do you know about the new disclosure rules?

    Dealers need to tell the buyer all the details about a vehicle before it is sold. These details are referred to as “Material Disclosure” in the new regulations. Here are some of the material facts required to be disclosed to potential buyers:

    • A printed VIN search.
    • If the vehicle was used as a taxi, for law enforcement, as an emergency vehicle or for racing.
    • If the odometer doesn’t represent the true distance traveled by the vehicle, or has been altered or replaced.
    • If the vehicle was owned by a rental company in the last 24 months.
    • Any information a dealer should expect could influence a consumer’s decision to buy or lease, or refuse to buy or lease, a vehicle from the dealer.
    • And more…

    A buyer may choose to pursue a dealer for damages and in certain circumstances return the vehicle if there is a failure to disclose all necessary information about a vehicle, or if the information disclosed is false or misleading.   

    A complete list of the required material facts can be found in the guide for the new regulations. For more information, contact the Consumer Protection Division at:

    Email: vehicledealers@gov.sk.ca
    Phone: (306) 787-5550
    Toll Free: 1-877-880-5550
    Fax: (306) 787-9779 

        



    The New Drive Train Warranty

    April 2016 - New Vehicle Dealer Regulations came into effect on Feb. 1, 2016. Do you know about the new rules about Drive Train Warranties?

    The new regulations provide for a minimum warranty on the sale of some used vehicles. If a used vehicle has less than 200,000 kilometres, the dealer must provide a minimum warranty on the power train for 30 days or 1,000 kilometres, whichever occurs first.

    If any component of the power train fails during the warranty period, the purchaser can choose to have it repaired or require the purchase price be returned.  If repairs are to be made, the dealer may only require the consumer to pay a maximum of $200 towards the cost of the repairs.

    The required warranty does not apply if the consumer misused the vehicle or the defect was brought to the buyer’s attention in writing.

        



    Consumer Protection - Vehicle Dealer Regulations Passed

    February 1, 2016 - Saskatchewan's new vehicle dealer Regulations have been passed as part of The Consumer Protection and Business Practices Act. An electronic copy is available here. Please note that the Regulations come into force on February 1, 2016.

    These new Regulations:

    • Update and replace The Motor Dealers Act and are attached as Regulations to The Consumer Protection and Business Practices Act;
    • enhance buyer protections by requiring dealers to:
      • provide comprehensive information on the vehicle they’re selling;
      • advertise an all-in  price that includes all fees and charges, if a price is listed in the advertisement; and
      • provide a minimum 1000-kilometre, 30-day drive train warranty on used vehicles that have less than 200,000 kilometres on them.
    • facilitate electronic processes for vehicle dealers to register and file documents with the Financial and Consumer Affairs Authority; and
    • regulate vehicle leases and consignments.

    For more information please contact: The Consumer Protection Division at 306-787-5550 or online at consumerprotection@gov.sk.ca.

    Consumer Protection Division

    Suite 500, 1919 Saskatchewan Drive

    Regina, Saskatchewan S4P 4H2

    Tel: (306)787-5550

    Toll free: (877)880-5550

    Fax: (306)787-9779

    Email: consumerprotection@gov.sk.ca

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