Canada Could Ban Sales of Cars with Open Recalls

Canada’s Senate is considering a bill that would give the country's Minister of Transport more power in handling recalls, including the ability to block dealers from selling certain vehicles that have been recalled but not repaired.

The bill also would give the ministry authority to fine carmakers rather than trying to sue them in court as it must do now. And it would empower the government to order recalls before rather than after manufacturers send affected owners a notice of defect.

Canada’s national safety regulators currently have no authority to order private owners, franchised dealers or independent used-car sellers to make recall repairs before selling a vehicle, Automotive News says. Rules governing used-car sales, title transfers and the mechanical fitness of used vehicles are set at the provincial level.

Currently dealers are allowed to sell used vehicles with outstanding recall repairs by disclosing the recall in the sales agreement. AN says that analysts calculate one in six vehicles on the road in Canada today is in need of unaddressed recall repairs.