Alberta
Government introduces new auto industry rules to protect consumers
New auto industry rules better protect consumers
October 25, 2018 Media inquiries
New rules for vehicle sales and repairs introduce industry-wide standards to protect Albertans and improve business accountability.
Minister Malkinson, centre, with AMVIC board chair Bill Burnett, right, and business owner Ted Zylstra discussing new consumer protection rules.
Improvements to the Automotive Business Regulation will create consistent standards to help consumers make more informed decisions and ensure businesses can compete fairly in a trusted automotive marketplace. The new, industry-wide standards come into effect on Oct. 31, 2018.
“Buying or repairing a car shouldn’t be intimidating. These new rules can give Albertans confidence that they won’t be hit with unexpected costs because they will know exactly what they’re paying for. More transparency is good for consumers and it’s good for Alberta’s many trustworthy auto businesses, too.”
During the 2017 consultation on consumer protection laws, Albertans identified the need for better protections when buying a car and more transparency when it comes to auto repairs as top priorities.
These changes respond directly to Albertans’ feedback to help consumers avoid unexpected and unauthorized costs. The new rules will ensure auto businesses:
- Inform buyers of the history and condition of a vehicle such as the vehicle’s previous use, ownership or details of any damages.
- Provide a comprehensive bill of sale document at the time of the car sale.
- Provide written estimates upon request and get consumer’s consent before starting any work.
- Remove any outstanding liens on a vehicle within seven days of the sale.
- Remove any advertising about a sold vehicle within 14 days of the sale to ensure consumers are not enticed by low prices that won’t be honoured.
“A vehicle is a lifeline for so many Albertans, and they deserve to feel confident when repairing or selling one. We welcome today’s announcement, as it prioritizes consumer protection – a mandate that’s been shared by AMA’s Approved Auto Repair Service since 1977.”
“Increased transparency in automotive transactions means consumers can feel even more confident in their decisions on how to spend their hard-earned money. AMVIC’s mandate is consumer protection through education and industry regulation, and AMVIC has been working closely with industry to ensure they are ready to comply with the new legislation. These new laws benefit all Albertans by creating a fair marketplace for consumers and businesses alike.”
“I think the government’s new legislation is great. It will help protect the consumer while also compelling automotive businesses to be more transparent. At Braeside Automotive, we already provide written quotes and can take pictures of components that we can attach to the quote for our customer. I think these rules will help encourage other businesses to be more innovative, which at the end of the day is good for consumers.”
The new rules also support the government’s work to build stronger public oversight of the Alberta Motor Vehicle Industry Council (AMVIC), by transitioning AMVIC to a public agency. This will ensure Alberta has a strong and trusted regulator that is well-positioned to protect consumers and build integrity in the industry.
Background
- In December 2017, the government passed A Better Deal for Consumers and Businesses Act. Among the many changes introduced through this act was an increased authority to strengthen oversight of the automotive industry to better protect the interests of consumers and ensure integrity in the industry.
- AMVIC is responsible for providing consumer protection in the motor vehicle industry. In addition to licensing businesses and salespeople and ensuring there’s a fair marketplace for consumers and businesses, AMVIC is responsible for investigating violations of consumer protection laws.
- AMVIC will transition to a public agency on Oct. 31. Once in place, AMVIC will be subject to the requirements under the Alberta Public Agencies Governance Act to ensure consumers and industry can have confidence there is strong public oversight of the organization.
From the Fraser Institute
By Tegan Hill
If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America
Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.
Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.
In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).
If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.
And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.
Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).
Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.
To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.
Author:
Making utility bills more affordableAlberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees. Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.
Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.
To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees. Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.
If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.
If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities Act, Government Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable. Quick facts
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