Bulletins

Sale of Vehicles ‘As Is’ – Alert Bulletin

February 16, 2022 - Recently, the Consumer Protection Division has received a number of complaints related to the attempted sale of vehicles using terms including but not limited to, “as is” on bills of sale or advertisements. The use of such terminology can be misleading to consumers, and it is the responsibility of licensed vehicle dealers to comply with The Consumer Protection and business Practices Act and The Consumer Protection and Business Practices Regulations. By virtue of these complaints, the Consumer Protection Division would like to remind our vehicle dealer licensees with pertinent sections of the Act and Regulations.

Selling of Non-Roadworthy Vehicles

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

No dealer shall sell or lease to a consumer a vehicle that is not equipped as required by section 144 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 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.

Required Disclosures

Section 5-22(1) and 5-22(2) of The Consumer Protection and Business Practices Regulations provide that every dealer must disclose 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 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 kilometers from the dealer’s premises; and
If a drive-away price has been advertised or displayed, the drive-away price.

Every dealer must disclose all material facts, in writing, as known by the dealer or that the dealer should reasonably be expected to know at the time the vehicle contract is entered into.

What If You Sell a Vehicle “As Is” Without Full Disclosure?

In accordance with section 5-23 of The Consumer Protection and Business Practices Regulations, failure by the dealer to comply with the disclosure requirements may result in a consumer’s immediate right to cancel the contract and reject 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 the false or misleading disclosure.

If you have any questions regarding disclosure and roadworthy requirements, please contact vehicledealers@gov.sk.ca

Vehicle Dealer Bulletin - Advertising

November 2, 2021 - The FCAA would like to remind licensees of your advertisement disclosure obligations under the laws of Saskatchewan, The Consumer Protection and Business Practices Regulation [CPBPR] and The Cost of Credit Disclosure Act, 2002 [CCDA]

What is considered an advertisement?

An advertisement is an inducement to buy or lease a vehicle. This includes, but is not limited to ads:

In print (newspapers, magazines, etc.)
On the internet (dealer website, online marketplace, etc.)
On social media
On radio or TV
On signs (including those in or on a vehicle)

What information is required in vehicle advertisements?

When posting vehicle advertisements, there are some essential details that must be included regardless of space limitations and/or the use of hyperlinks, including:

The name of the dealership or the initials DL followed by the dealer licence number - CPBR, s. 5-21(1)

If advertising a specific vehicle, the ad must make reference to the vehicle:

Drive-away price - CPBR, s. 5-21(2)(i)
Stock number - CPBR, s. 5-21(2)(i)

If a periodic payment for a vehicle is included in the ad, the following information must also be included:

The total charges paid by the consumer if credit is approved - CPBR, s. 5-21(5)
The Annual Percentage Rate (APR) - CCDA s. 23(2)(a)
The term - CCDA s. 23(2)(b)

Requirements for lease advertisements

Regardless of space limitations, ads providing specific information about the cost of a lease (i.e. monthly payment, interest rate etc.) must disclose the following information where applicable:

That the transaction is a lease - CCDA S. 40(2)
The amount of any payment(s) due at or before the beginning of the term - CCDA S. 40(2
The amount, timing and number of periodic payments - CCDA S. 40(2)

Information that must be made accessible via telephone or reference to a publication where it is available (i.e. hyperlink) if not included in the ad:

The Annual Percentage Rate (APR) - CCDA S. 40(2)(b)
The term of the lease - CCDA S. 40(2)

The use of hyperlinks in electronic ads

Where space is limited, electronic ads can incorporate the use of a hyperlink to direct consumers to additional information about products for sale. However, the advertising requirements listed above must be included on the webpage where the initial ad is located. For best practice, provide a direct link from the initial ad to the vehicle on the company website that includes all the terms and conditions that apply to the vehicle. In addition to being clear and visible, it should be evident that the hyperlink will lead to more relevant information about the vehicle. Note that in the event there is very limited space in an ad, just the vehicle should be advertised, with no reference to price or periodic payments if full disclosure cannot be provided as outlined above. This policy has been implemented to ensure consumers are not misled by only receiving partial information from the initial ad. By complying with this outline, consumers will have sufficient information to inquire further about a vehicle in the event that a link fails.

What is the Drive-Away Price?

The Drive-Away Price refers to the total charges, not including taxes or financing charges, that the consumer, if paying cash without trading in a vehicle, would be required to pay to conclude a transaction - CPBR, s. 5-17(a) , including:

The price of the vehicle
Freight
PDI/PDE (pre-delivery inspection/expense)
Fees and levies

Products or services that have been pre-installed on a vehicle by a dealer MUST also be included in the drive-away price. Examples include:

Nitrogen/tire protection package
Warranties
Security or theft deterrent products/services (etching, etc.)
Fuel

What are the exceptions to drive-away price advertising?

Consumer Protection does not regulate vehicle manufacturers; therefore, advertisements placed by manufacturers (which do not list a Saskatchewan Dealer) do not have to comply with the Consumer Protection and Business Practices Act and Regulations. As such, manufactures are not required to provide all-in pricing.

For more information please contact vehicledealers@gov.sk.ca

Vehicle Dealers Criminal Record Check Reminder

January 8, 2021 - We are coming up on the fifth year anniversary of our move to the online Registration and Licensing System (RLS). This year many of you will be required to provide us with a new criminal record check (CRC) as per section 5-16 of The Consumer Protection and Business Practices Regulations.

Criminal record check to be updated

5-16 (1) A dealer shall provide to the director an updated criminal record check before the fifth anniversary of the date of the criminal record check provided pursuant to clause 5-12(1)(e) and before every subsequent fifth anniversary of that date.
(2) Clause 5-12(1)(e) applies to a criminal record check that is to be provided pursuant to subsection (1).

As new criminal record checks are required every five years, we wanted to send you a reminder of this requirement. Please ensure that you are prepared to provide this updated information when required. Typically, criminal record checks can be obtained through your local police or RCMP detachment. Criminal record checks may also be obtained through an online provider such as the ones listed below. Please note that if you wish to use an online criminal record check provider, the company is required to be licensed in Saskatchewan as a Credit Reporting Agency.

Below is a list of the licensed companies currently in Saskatchewan who may offer such a service:

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

Rodney J. Evason pleaded guilty to 13 offences contrary to The Consumer Protection and Business Practices Act (Act) and The Consumer Protection and Business Practices Regulations (Regulations)

September 29, 2020 - Rodney J. Evason, a vehicle dealer operating without a license, pleaded guilty to 13 offences contrary to the Act and Regulations . Mr. Evason’s unlawful activities included selling vehicles to consumers without a licence, knowingly making misleading statements to consumers in respect to material facts, and making false claims. Mr. Evason was fined more than $17,000 including victim surcharge fee and was ordered to pay nearly $7,000 in restitution to one of his victims.

Last year, the Financial and Consumer Affairs Authority (“FCAA”) received information about Mr. Evason’s unlicensed sales activity, also known as “curbing” or “curbsiding”. A curber is someone who carries on business as a dealer by purchasing and selling vehicles to consumers without a licence. This is an illegal activity. On at least two occasions, Mr. Evason was directed by the FCAA to cease and desist his curbing activities, but he continued to operate without a licence. On April 30, 2019, Mr. Evason was charged in a 22 count Information. On June 14, 2019, a warrant was issued for his arrest and in March 2020, Saskatoon City Police were able to successfully execute that warrant.

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 the FCAA, and are subject to inspections, among other requirements.

FCAA v 1292709 Alberta Ltd. and Martin Hausner [Hausner] decision issued

December 13, 2019 - On October 2, 2019, the Deputy Director issued a decision, FCAA v 1292709 Alberta Ltd. and Martin Hausner [Hausner], that has a number important key takeaways for licensed motor vehicle dealers. This information bulletin highlights three of the major takeaways.

Section 5-2 of the Regulations lists a number of “changes in circumstance” that need to be disclosed by licensees to the Consumer Protection Division within 5 business days of their occurrence. Disclosure is not an option, it is mandatory. When it comes to disclosing “the instituting of proceedings… in respect to a criminal offence” against a licensee or any director, officer or partner of the licensee (subsection 5-2(h) of the Regulations), the five business day timeline starts at the time the Information is laid. This is because criminal proceedings are commenced or instituted at the time the Information is laid. (see Hausner at paras 41-64).
Licensees cannot rely on the Canadian Charter of Rights and Freedoms to shield them from a formal demand for information made pursuant to section 78 and 79 of the Consumer Protection and Business Practices Act when that demand is made for the purposes of determining continued suitability to hold a licence. The Director, Deputy Director, and/or any person delegated authority to make the demand (such as an Investigator) has the power to demand information, including into the background that led to the criminal charges, so that a proper suitability analysis can be conducted. Failure to comply with a demand for information can result in a suspension of the licensee’s licence. (Hausner at paras 65-81)
Regulatory proceedings instituted by the Consumer Protection Division are not less important in the eyes of the law than criminal proceedings. It is incorrect to treat our office’s regulatory proceedings as secondary to the criminal proceedings. Instead, if regulatory proceedings and criminal proceedings regarding similar background facts exist at the same time, they are to be considered parallel proceedings. The Supreme Court of Canada has recognized that parallel proceedings are valid and permissible in law. (Hausner at paras 83-85)

Dan Leonard Auto Sales Ltd.

November 12, 2019 - Decision

Vehicle Dealer Alert - 1292709 Alberta Ltd. - Martin Hausner

October 2, 2019 - Notice of Proposed Action Decision

Vehicle Dealer Alert - Rodney J. Evason

June 25, 2019 - Rodney J. Evason - vehicle dealer operating without a licence

Vehicle Dealer Alert - Dan Leonard Auto Sales Ltd.

June 18, 2019 - Notice of Immediate Action to Suspend License

Vehicle Dealer Alert - Dan Leonard Auto Sales Ltd.

March 27, 2019 - Notice of Proposed Action to Cancel License.

Vehicle Dealer Alert - Jayz Auto Repair and Performance Decision

March 27, 2019 - Decision regarding Jayz Auto Repair & Performance.

Vehicle Dealer Alert - Advertising

January 11, 2019 - Our office would like to remind you of your advertisement disclosure obligations under the laws of Saskatchewan, The Consumer Protection and Business Practices Regulation [CPBPR] and The Cost of Credit Disclosure Act, 2002 [CCDA]

What is considered an advertisement?

An advertisement is an inducement to buy or lease a vehicle. This includes, but is not limited to ads:

In print (newspapers, magazines, etc.)
On the internet (dealer website, online marketplace, etc.)
On social media
On radio or TV
On signs (including those in or on a vehicle)

What information is required in vehicle advertisements?

When posting vehicle advertisements, there are some essential details that must be included regardless of space limitations and/or the use of hyperlinks, including:

The name of the dealership or the initials DL followed by the dealer licence number - CPBR, s. 5-21(1)

If advertising a specific vehicle, the ad must make reference to the vehicle:

Drive-away price - CPBR, s. 5-21(2)(i)
Stock number - CPBR, s. 5-21(2)(i)

If a periodic payment for a vehicle is included in the ad, the following information must also be included:

The total charges paid by the consumer if credit is approved - CPBR, s. 5-21(5)
The Annual Percentage Rate (APR) - CCDA s. 23(2)(a)
The term - CCDA s. 23(2)(b)

Requirements for lease advertisements

Regardless of space limitations, ads providing specific information about the cost of a lease (i.e. monthly payment, interest rate etc.) must disclose the following information where applicable:

That the transaction is a lease - CCDA S. 40(2)
The amount of any payment(s) due at or before the beginning of the term - CCDA S. 40(2
The amount, timing and number of periodic payments - CCDA S. 40(2)

Information that must be made accessible via telephone or reference to a publication where it is available (i.e. hyperlink) if not included in the ad:

The Annual Percentage Rate (APR) - CCDA S. 40(2)(b)
The term of the lease - CCDA S. 40(2)

The use of hyperlinks in electronic ads

What is the Drive-Away Price?

The price of the vehicle
Freight
PDI/PDE (pre-delivery inspection/expense)
Fees and levies

Products or services that have been pre-installed on a vehicle by a dealer MUST also be included in the drive-away price. Examples include:

Nitrogen/tire protection package
Warranties
Security or theft deterrent products/services (etching, etc.)
Fuel

What are the exceptions to drive-away price advertising?

For more information, please contact vehicledealers@gov.sk.ca

Vehicle Dealer Alert - Barlow Motors Saskatoon

December 14, 2018 - Cease and Desist and Compliance Order

A compliance order was issued to 1973566 Alberta Ltd. operating as Barlow Motors Saskatoon on December 14, 2018.

Clause 77 (6) (b) of the Consumer Protection and Business Practices Act (the Act) requires the Director to make certain information available to the public.

Specifically, the Act states that the director shall:
(b) maintain a public record of:
(i) enforcement proceedings taken pursuant to this Act or the regulations;
(ii) orders and judgments rendered pursuant to this Act; and
(iii) voluntary compliance agreements entered into pursuant to section 80.

For more information please contact 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

Vehicle Dealer Alert - Misleading Auto-Debt Relief Program

November 16, 2018 - It has been brought to the attention of the Financial and Consumer Affairs Authority of Saskatchewan (“FCAA”) that there is a marketing company attempting to do business with Saskatchewan vehicle dealers by promoting the “Auto Debt Relief Program” (attached).

The advertisement for this “program” contains unfair business practices as described in The Consumer Protection and Business Practices Act (the “Act”) and appears to imply an affiliation with the Alberta Motor Vehicle Industry Council (“AMVIC”), the vehicle dealer regulator in Alberta. AMVIC has advised FCAA that it is not affiliated with these advertisements. The advertisement further suggests that a consumer has a “chance to pay off all your households automotive debt instantly”. However, in the fine print the advertisement indicates only to a maximum amount of $25,000 and that the cash back and relief credit are on purchase only”.

Any information provided to consumers that may mislead, deceive or take advantage of consumers is a violation of the Act.

Regulatory Action

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

As licensed dealers in Saskatchewan that supply 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 FCAA’s 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 – Unfair Practices: http://www.qp.gov.sk.ca/documents/english/Chapters/2013/C30-2.pdf

Vehicle Dealer Alert - Change in Circumstances

November 8, 2018 - This bulletin is issued to remind dealers that they have a positive obligation to notify our office within 5 business days of any prescribed changes in circumstances as defined by s. 5-2 of the Regulations.

Specifically:

s. 70 of the Act states:

Licensee to notify director if circumstances change

Within five business days after a prescribed change in circumstances, an applicant or licensee shall notify the director in writing.

s. 5-2 of the Regulations states:

Change in circumstances

5‑2 For the purposes of section 70 of the Act, a change in circumstances consists of:

(a) a change in any of the following information previously provided to the director in an application for a licence, a renewal of a licence or the reinstatement of a licence:

(i) an address, including an address for service, or a telephone number;

(ii) the name of the applicant or the licensee;

(iii) if the applicant or licensee is a partnership or a corporation, the fiscal year;

(iv) if the applicant or licensee is a corporation, an officer or director of the corporation;

(v) if the applicant or licensee is a partnership, a partner of the partnership;

(vi) the location at which the licensee retains, or the applicant will retain, records required to be kept by the Act;

(vii) any other material change;

(b) if the licence is for a specific location, the licensee ceasing to carry on business at that location;

(d) the suspension, cancellation, surrendering or amendment in any other jurisdiction of the applicant’s or licensee’s authority to carry on business relating to the activities for which the licence has been applied for and granted;

(e) the imposition of any terms, conditions or restrictions on, or the variation or modification of any terms, conditions or restrictions imposed on, the applicant’s or licensee’s authority to carry on business as a designated business in any other jurisdiction;

(f) a civil action or a regulatory proceeding being brought against the applicant or licensee or any director, officer or partner of the applicant or licensee, in relation to:

(i) fraud;

(ii) breach of trust;

(iii) deceit;

(iv) misrepresentation; or

(v) the actions of the applicant or licensee in the activities for which the licence has been applied for and granted;

(g) the issuing of a judgment or decision by a court or other adjudicator against the applicant or licensee or any director, officer or partner of the applicant or licensee, in relation to:

(i) fraud;

(ii) breach of trust;

(iii) deceit;

(iv) misrepresentation; or

(v) the actions of the applicant or licensee in the activities for which the licence has been applied for and granted;

(h) the instituting of proceedings against, or conviction of, the applicant or licensee or any director, officer or partner of the applicant or licensee with respect to a criminal offence, or any other offence under the laws of any other jurisdiction, excluding traffic offences; or

(i) any change in circumstances that provides reasonable grounds to believe that the financial security required by the director pursuant to section 59 of the Act may not be in force or effective in accordance with its terms or may otherwise fail to meet the requirements of the director.

Vehicle dealers are expected to comply with the sections of the Act and Regulations cited above. Written notification to the director of a change in circumstance as described in section 5-2 of the Regulations (reproduced above) by submitting a Change of Information form through the Registration Licensing System (RLS). If a vehicle dealer fails to notify the director in writing of a change in circumstances, that vehicle dealer may be subject to regulatory action.

For more information please contact vehicledealers@gov.sk.ca

Voluntary Compliance Agreement - MacNeil Motors Inc. Licence #323540

August 30, 2018 - This bulletin is issued to alert dealers to a compliance action recently undertaken by the Consumer Protection Division of the Financial and Consumer Affairs Authority (FCAA) in respect to a dealer in Saskatchewan. The compliance action that was undertaken is a Voluntary Compliance Agreement entered into by Jeff MacNeil on behalf of MacNeil Motors Inc., Vehicle Dealer Licence #323540. We provide this information as a useful tool for dealers to evaluate their own current business practices.

Clause 77(6)(b) of the Act states:

77 …

(6) The director shall:

(a) …

(b) maintain a public record of:

(i) enforcement proceedings taken pursuant to this Act or the regulations;

(ii) orders and judgments rendered pursuant to this Act; and

(iii) voluntary compliance agreements entered into pursuant to section 80.

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

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 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.

Vehicle Dealer Disclosure checklist sample

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 - Acura Centre of Saskatchewan

Compliance Order - Capital GMC Buick Cadillac Ltd.

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

Compliance Order - 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.

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.