What happens during an AMVIC inspection?

DATE: | Industry bulletins

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 increase the potential for compliance, build a professional relationship with industry and help build consumer confidence in Alberta’s automotive industry.

Who conducts inspections?

AMVIC industry standards officers conduct inspections. Each inspector carries identification that demonstrates they are an AMVIC inspector and businesses should ask to see their identification.

Why are inspections conducted?

Inspections are a way to enhance consumer confidence by ensuring Alberta’s automotive industry is in compliance with the Consumer Protection Act, Traffic Safety Act and associated regulations.

Under the Consumer Protection Act, 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.  

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: MFAs, bills of sale, consignment agreements, repair invoices, banking records, vehicle inventory, payroll records 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.   

What are the outcomes of an inspection?

After the inspection has been completed, a findings letter will be sent to the business that outlines any compliance concerns found. Although inspectors do not take any enforcement actions directly, should a serious breach of the legislation be identified during the inspection, they will notify the industry standards manager, who may pass along the issue to the investigations department if required. Please see the industry standards policy, available on amvic.org, for more information.

Inspections are a learning tool for businesses to understand the responsibilities in following legislation within a regulated environment. The business is often given a time period to correct issues identified from an inspection and then a follow up inspection is conducted to ensure any identified issues are remedied and compliance is met.