Maintaining records for inspections

| Industry bulletins

Under the Consumer Protection Act, Section 132(1) states that it is a requirement to create and maintain complete and accurate financial records. Every business operator and former business operator must maintain all records and documents created or received while carrying on the activities authorized by the business licence for at least three years after the records were created or received.

These records typically form the main component of an inspection that an AMVIC industry standards (inspector) officer conducts.

What to expect during an inspection:

  • An inspection can take anywhere from an hour to an entire business day depending on the size and complexity of the business, and if follow up is required.
  • Inspections typically include an examination of sample transactions from the previous three year period, which must be made available to the inspector.
  • Documents examined could include, but are not limited to: Mechanical Fitness Assessments, bills of sale, consignment agreements, repair invoices, banking records, vehicle inventory, payroll records, warranty remittances and GST remittances.
  • An inspector will also review previous recent advertisements in multiple formats.
  • An inspector may take copies or photos of documents to include in their reports.  

An inspector may enter the premises of an AMVIC-licensed business at any reasonable time to conduct an inspection. Inspections are prioritized based on the number of consumer complaints, previous risk assessments and other concerns that may necessitate a visit. However, it is important to note that any AMVIC-licensed business may be inspected at any time, with or without notice, even on a random basis. 

AMVIC inspections are a proactive opportunity for licensed automotive businesses to learn more about the applicable legislation and best practices within the industry. The Consumer Protection Act gives AMVIC the authority to inspect all licensed automotive businesses in Alberta, including service and repair businesses. Inspections can help a business come into compliance and help build consumer confidence in Alberta’s automotive industry.

More inspection information can be found on amvic.org.