The VSA operates within the limited powers delegated to it in an Administrative Agreement with the provincial government and the Motor Dealer Delegation Regulation.
The Motor Dealer Act (MDA) and the Motor Dealer Act Regulation give the Registrar and the VSA authority to enforce the Motor Dealer Act and certain sections of the Business Practices and Consumer Protection Act (BPCPA).
Motor Dealer Act
The MDA creates licensing requirements for motor dealers and salespeople, broker agents and their representatives, and wholesalers.
It also requires dealers and salespeople, as well as broker agents and their representatives make specific declarations and disclosures to consumers about vehicles for sale. Broker agents also have strict conflict of interest requirements.
The Motor Dealer Customer Compensation Fund provides compensation to certain eligible consumers for losses that occurred when a licensed motor dealer went out of business or failed to meet certain legal requirements.
The MDA also permits compliance orders and significant administrative penalties for the unlicensed selling of vehicles. This includes what is known as curbing.
Business Practices and Consumer Protection Act
The BPCPA defines certain practices as being unfair, deceptive and unconscionable. It also requires a seller to stand behind the representations they make. The Registrar and the VSA have the authority to enforce limited sections of the BPCPA.
Role of the Registrar
The Registrar is appointed by the VSA Board of Directors, but remains independent from the Board on all regulatory and enforcement matters. Under the MDA, the Registrar has the power to: