Transport Canada’s New Publication Requirements for Automotive Recalls
On January 1, 2025, the Government of Canada published the Regulations Amending Certain Regulations Made Under the Motor Vehicle Safety Act (Recall Information) (the “Regulations”). As the name suggests, under the Regulations, companies in the automotive sector that issue notices of defect1 (more commonly known as recalls) or notices of non-compliance2 will be required to publish information on the notices and recalls on their website in a timely manner. While some companies already do so on a voluntary basis, the Regulations will standardize the type of information required and its availability by providing a deadline by which companies must update their websites, all with the objective of facilitating access to recall information for consumers. The Regulations do not introduce new information requirements; they merely mandate the online publication of the information in notices of defect and non-compliance already sent to the Minister of Transport (the “Minister”) and to vehicle owners and other prescribed persons under the Motor Vehicle Safety Act (“MVSA”) and its regulations.
CLASSIFICATION OF COMPANIES
Companies already subject to recall obligations under the MVSA, such as manufacturers, importers, and dealers of vehicles, tires and equipment used to restrain children and disabled persons in vehicles, are expected to comply with these new publication requirements. Further, these companies will have distinct publication obligations depending on whether they are “designated” or non-designated by the Minister. While the Regulations do not provide criteria for designation or the designation process, an impact analysis from the Government of Canada states that the designation will be carried out by formal correspondence with the company and will likely consider its size.
The primary distinction between designated and non-designated companies lies in their obligations regarding information accessibility. Designated companies are required to develop a search tool on their website to facilitate the retrieval of information, whereas non-designated companies are not obligated to implement such a tool when publishing information on their website. These requirements are discussed further below.
PUBLICATION OF INFORMATION
All companies, designated or not, will need to publish the information prescribed by the Regulations in both French and English on their website used for the Canadian market. This includes contact information for any questions related to a safety recall, the method to report a suspected safety issue, and the process to advise a company of a change in ownership. Designated companies must publish this information through an online search tool on their website that provides safety recall information based on the VIN. Companies that do not have a website are exempt from the Regulations.
There are deadlines that must be respected by both designated and non designated companies with regard to the publication of information on their website:
- The information must be published as soon as feasible, but at the latest within 60 days of giving the notice to the Minister.
- Should there be any changes to the information must also be updated within 7 days of the change or (depending on the information) the information becoming available.
- The information must remain displayed on the company’s website for at least 15 years from the date of the notice being given to the Minister.
If a VIN does not have a notice of defect or non-compliance when a search is carried out on the company’s website (or, more specifically for designated companies, the search tool), the website must still contain: a statement indicating that no defect or non-compliance has been found in respect of such VIN; basic information on the vehicle; and instructions on how to take further action such as obtaining the requested information and contacting the company. If the company’s website or the search tool does not recognize a VIN, the company must provide a statement to that effect and instructions on possible next steps, such as sources for additional information and means to contact the company.
There are also certain accessibility parameters that the company website and search tool must follow. The relevant information or the search tool must be available directly on the website home page or through a hyperlink that contains the word “Recall” or “Recalls” displayed prominently on the home page. In addition, the information must be available free of charge, accessible without the user needing to register or enter any information, and displayed before any other information on the search tool results page.
NON-COMPLIANCE INCONSEQUENTIAL TO SAFETY
The Regulations require companies to publish all incidents of non-compliance, including those deemed inconsequential to safety. Previously, companies only had to notify the Minister of such non-compliance but did not have to inform vehicle owners or others until the Minister determined that in fact the non-compliance was consequential to safety. The new regulations eliminate this exception, requiring publication regardless of the company’s obligation to notify parties other than the Minister.
CONCLUSION
By mandating the timely and accessible publication of safety recall information, the Regulations aim to streamline the process for consumers to access critical information about their vehicles as the number of recalls increase, although with certain costs. The Government of Canada estimates costs associated with the Regulations to be $4.94 million over a 10-year timeframe from 2024 to 2033. These costs will apply to companies for website development, and to Transport Canada for conducting audits. Ultimately, automotive companies will need to mobilize their compliance and website development teams in a timely manner to ensure compliance.
This blog post was prepared and published by McCarthy Tétrault’s Transportation and Logistics Group. The Transportation and Logistics Group has extensive experience advising motor carriers and the transportation industry in respect to provincial and federal regulations. For more information on Transport and Logistics, please contact Kosta Kalogiros or Brian Lipson.
1 Under the MVSA and its regulations, when a company finds a safety defect in the design, manufacture or functioning of a vehicle that affects or is likely to affect safety, it must notify the Minister of Transport, the current vehicle owner and other prescribed persons of the defect and resulting recall.
2 Under the MVSA and its regulations, when a company finds a non-compliance of the vehicle or equipment with the regulations, it must notify the Minister of Transport, the current vehicle owner and other prescribed persons of the non-compliance.