Impact Newsletter Q4 2006

A publication of the:
A newsletter for Alberta motor industry’s
licensed businesses and registered salespeople.
IMPACT!
FUNDING AMVIC
AMvic’s mandate is to administer
and enforce automotive industry
regulations under Alberta’s Fair
Trading Act. by doing so, it helps
provide a level playing field and a fair
marketplace for both consumers and
businesses.
standing Policy committee for Justice
and Government services. the board
suggested that consumers participate
in the funding of AMvic by having a
small portion of the registration fee
on a vehicle directed to AMvic. the
committee rejected this proposal.
in order to fulfill its delegated
mandate AMvic needs to:
the board is now carefully
considering other options. one is
to increase fees to businesses and
salespeople. Another is to place a
levy on all vehicles sold by AMvic
licensed businesses. in addition, it
is reviewing best practices in other
provinces and industries.

better serve consumers by having
a full complement of investigative
staff;

ensure everyone working in the
motor vehicle industry is licensed;

augment licensing staff so
applications are processed in a
timely manner;

create and manage a compensation
fund.
the AMvic board is reviewing
every possible option to put the
appropriate funding in place to meet
the above objectives.
if you have any comments or
suggestions, please forward them in
writing to:
bob hamilton, executive director
email: [email protected]
fax:
780.462.0633 .
FALL/WINTER 2006
on september 26, 2006, the board
put forth a funding request to the
PUBLISHED BY:
#303, 9945 - 50 Street, Edmonton, AB T6A 0L4
Tel: 780.466.1140 Fax: 780.462.0633
Email: [email protected]
Toll Free Numbers:
Licensing:
1.877.979.8100
Investigations: 1.877.279.8200
Keith Graham, RECREATIONAL VEHICLE DEALERS, NISKU
Brent Hesje, INDUSTRY-AT-LARGE, EDMONTON
Peter Lokstadt, SERVICE & REPAIR ASSOCIATION, EDMONTON
Edward Nestorowicz, PUBLIC APPOINTEE, LETHBRIDGE
Randy Montgomery, INDUSTRY-AT-LARGE, GRANDE PRAIRIE
Wayne Orsten, AUCTIONEERS ASSOCIATION, CALGARY
Bart West, PUBLIC APPOINTEE, EDMONTON
Return undeliverable mail to the above.
EXECUTIVE:
2006 BOARD OF DIREC TORS:
Bob Hamilton, EXECUTIVE DIRECTOR
Shannon DeLorey, MANAGER OF LICENSING & FINANCE
Bob Knight, MANAGER OF INVESTIGATIONS
Janet Tancsics, SECRETARY TO THE BOARD
ALBERTA MOTOR VEHICLE INDUSTRY COUNCIL
Reg Pattemore, MOTOR DEALERS’ ASSOCIATION, CALGARY
CHAIRPERSON OF THE BOARD
Marc Bergevin, INDUSTRY-AT-LARGE, EDMONTON
EDITING & DESIGN:
LINK PR INCORPORATED
9249 - 48 Street, Edmonton, AB T6A 0L4
Tel: 780.448.2890 Fax: 780.465.6201 Email: [email protected]
Impact! is the official publication of AMVIC. Comments or
mailing address changes should be sent to the publisher.
Impact! welcomes articles about the motor vehicle industry
and its people. Letters to the Editor are welcome.
I m pac t ! A Publication of the ALBERTA Motor vehicle industry council
Staff not registered?
Charges may be
coming!
Starting January 1st, 2007, AMVIC
investigators will immediately lay
charges against the salesperson,
the business entity and the business
owner, when unregistered sales staff
are found working at an automotive
business. To avoid charges, ensure
proper registration for all sales staff.
AMVIC investigators recently met
and reached a consensus that some
businesses continually allow staff to
work without the proper authorization
from AMVIC. It was felt that these
businesses simply did not take the
requirement seriously and would
conform only if an investigator stopped
by. These laws have been in effect for
many years and every business owner
knows the legal requirements in relation
to their salespeople’s registration.
Section 16 of the Automotive Business
Regulation allows charges to be laid
against individuals who are not properly
registered, while section 20.1 allows
the business owners to be charged for
allowing unregistered people to work
for them. The maximum penalties for
these offences are $100,000, and/or up
to two years in jail.
The definition of a salesperson is: a
person who solicits, negotiates or
concludes an agreement to buy, sell,
lease, exchange or consign a vehicle. As
such, every person who deals with the
consumer in any manner relating to the
sale, from the initial salesperson and
his/her manager, up to the financing
officer, is required to have an AMVIC
registration.
AMVIC must receive the registration
application to work as a salesperson
BEFORE one can start selling vehicles.
The individual then has 90 days to
complete the salesperson course. If
the salespeople are working for an
out-of-province marketing company,
they must meet all requirements prior
to working in Alberta. See page four for
more information.
392
Inves tigations Update
Investigation Statistics - Year-To-Date
Complaint Statistics (number of calls)
New purchases
250
Used purchases
881
Repairs and service
392
Information and advice
6,245
Investigation Statistics
Total Fair Trading Act charges laid
119
Total Criminal Code fraud charges
8
Open investigation files
960
Closed investigation files
906
Total arbitration by investigators $2,005,594
Fines and restitution by the courts $16,250
Licensing Investigators
AMVIC’s Board of Directors recently approved the hiring of two new Licensing
Investigators. The new investigators will be responsible for ensuring that all automotive
businesses and salespeople are properly licensed and registered. The province will
appoint them as special constables with the authority to lay charges against any
business, business owner or salesperson when found operating without the required
authority.
AMVIC plans to hire the investigators immediately to start investigating licenses
and registrations. All businesses and their staff should ensure that they are properly
licensed and legally registered with AMVIC. If convicted in court for operating without
proper authority, the Fair Trading Act allows for fines of up to $100,000 and/or two
years in jail.
False Financing Qualifiers
AMVIC received consumer complaints alleging that in order to qualify for financing
to purchase a new or used vehicle they must purchase an extended warranty, life or
disability insurance. In the majority of these cases, AMVIC investigators determined
that there was no such requirement on behalf of the financing company.
All dealers and salespeople should be aware that selling any of these services in this
fashion is a violation under section 6(4)(a) of the Fair Trading Act, which states it is an
offence for a supplier to do or say anything that might reasonably deceive or mislead
a consumer. AMVIC investigators are well aware of the incentives for dealerships to sell
these extra services and take these allegations seriously. The preference is to mediate
resolutions and obtain compliance with the provincial legislation. However, if these
activities persist, AMVIC may have no choice but to seek the help of the courts in
stopping this practice. If the dealer and salespeople always ensure that the promotion
of products and services is in an honest and ethical manner, then there will never be a
conflict with the Fair Trading Act.
fall & winter 2006
Licensing Delays
As with all industries in Alberta, the motor vehicle industry is
not alone with incredible growth in the past two years. New
salespeople are entering the industry at an unprecedented
rate, and all are required to be AMVIC trained and registered.
Additionally, new rules and regulations have brought a large
number of new businesses, such as inspection stations and
recreational vehicles, under AMVIC’s umbrella. AMVIC’s staff
continues to work diligently to keep up with new applications
and renewals, but with this added demand on resources, some
applications have fallen a few weeks behind. Please be patient
while waiting for a licence, registration or salesperson course
dates. Every effort is being made to ensure applications are
processed as quickly as possible.
Checking Criminal Records for
Licensing
From its inception, AMVIC has randomly checked criminal
records of applicants with the Edmonton Police Service. They
could only be spot checked so as not to overburden the system
with running thousands of applications annually.
In spring 2006, AMVIC made application to and received
approval for direct access to the Canadian Police Information
Center (CPIC) from the Royal Canadian Mounted Police. Since
then, in order to help determine if the applicant is fit to be in
the automotive industry, AMVIC has checked for a criminal
record with every new salesperson and business applicant. It is
fully understood that people who have made mistakes in their
life can change for the better, so having a criminal record does
not automatically negate a person from being in the industry.
Prior to making a decision, the executive director considers the
relevance of the crime, the date of the offence, the applicant’s
honesty and any life-changes the applicant has made.
If you have a criminal or youth record...
1. Do not lie on the disclosure sheet with the application.
Help expedite licensing renewals and applications by:

Salespeople: keep your information up-to-date.
Incorrect information on file is a significant challenge for the
licensing department. Salesperson renewals are sent to your
home address. So if you move, don’t forget to update your
records at AMVIC.

Employers: provide AMVIC with a contact name, phone
number and email address.
This will ensure AMVIC is dealing with the proper individuals
and expedite any contact that might be required.

Businesses: ensure that AMVIC has an authorization form
signed by an authorized official for your salespeople.
Without this form, the salespeople cannot receive their
registration.
NOTE: New licensing forms are available online at www.amvic.
org. The new forms are being implemented immediately.
Lying on this application is a reliable
indicator that the applicant cannot
be trusted to be in the automotive
industry, so the license or
registration may be refused on
this basis alone. Obviously, one
should be completely honest on
all documents submitted, and if
there is a past that one may not be
proud of, choose to be forthright
with it, and then promote the
positive changes that one has
made in his or her life.
2. A youth record is still a criminal
record and must be disclosed.
3. Those who are currently registered and
have not disclosed a criminal record,
should do so immediately.
In early 2007, AMVIC will check the criminal record of all previous
applicants. If one misrepresented a criminal record in the past,
it is in their best interest to be proactive in submitting a letter
to AMVIC explaining the circumstances of their past decision, as
opposed to waiting for AMVIC to discover the record on its own.
I m pac t ! A Publication of the Alberta Motor vehicle industry council
Out of Province Marketing Companies
Regulation
Education
Question
Tracey purchased
a vehicle from
Kool Karz. The salesperson, Joe, told
Tracey that the vehicle had been in
an accident but had been properly
repaired. While getting her car serviced
after she purchased it, Tracey’s
mechanic told her that the vehicle
had been poorly repaired and pointed
out several deficiencies in the repairs.
Tracey later discovered that the vehicle
had been previously declared salvage
(written-off ) and been rebuilt. What
was Kool Karz/Joe’s responsibility?
Answer
Kool Karz had a responsibility to have
inspected the vehicle and provided
a Certificate of Mechanical Fitness to
Tracey before she bought the vehicle
outlining the deficiencies on the
vehicle.
Joe the salesperson also should have
disclosed to Tracey that the vehicle
had previously been declared salvage.
Telling her that the vehicle had been
in an accident was not the whole truth
– rather she had a right to know the
extent of the accident’s damage.
Fair g
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In the past few years some dealerships have hired promotional companies to help
dispose of their used car inventory. Typically, the companies bring in a team of
salespeople and create an event using specialized advertising. They often focus on
hard-to-finance consumers.
AMVIC has established specific guidelines for these companies to operate and register
their salespersons in Alberta. The requirements are:

AMVIC must license the company before it conducts any sales in Alberta.

Every salesperson working for the company must complete all requirements
for registration PRIOR to working in Alberta. This also means that they must
successfully complete the Salesperson Course prior to working in any manner.

The company must notify AMVIC of each sales date and location while in Alberta. It
must also submit a list of all salespeople attending each sale.
Companies are continually asking AMVIC to express registrations for these salespeople.
It is AMVIC’s policy not make any special arrangements to rush registrations. AMVIC’s
website (www.amvic.org) maintains a listing of all licensed businesses and registered
salespeople in Alberta.
It is the dealership's responsibility to ensure valid AMVIC registration of ALL
salespeople working at its business, including those employed by a marketing
company.
Dealership owners should also be aware AMVIC has had numerous issues brought to
our attention in the past relating to marketing companies. Three areas of particular
concern are:
1. Falsifying credit applications to get people approved.
2. Coercing consumers to purchase extended warranties or life insurance by stating
they cannot receive financing without these extras.
3. High-pressure selling tactics.
These are all offences under the Fair Trading Act and possibly fraud under the Criminal
Code. Dealership owners and managers need to be aware that they are ultimately
responsible for the behaviour of these individuals and accountable for their actions. It
is imperative that management has appropriate controls in place to ensure compliance
with provincial regulations and maintains vigilance to make certain these out of
province companies and their employees act lawfully.
New Course Name
The Salesperson Course 100 now
has a new name: Fair Trading Act
& Regulations in the Automotive
Industry. The new name reflects
the updated course curriculum.
AMVIC’s website at www.amvic.
org lists the upcoming course
dates.
Wishing you and
yours a joyous holiday
season and a healthy,
prosperous 2007!