Regulatory Update: Transport Canada Proposes Administrative Monetary Penalties Under Motor Vehicle Safety Act

Financial penalties for regulatory violations could be on the horizon for automotive manufacturers. On October 21, 2020, Transport Canada launched an informal consultation seeking public feedback on the creation of a new safety regulation under the Motor Vehicle Safety Act  (the Act) for administrative monetary penalties (AMPs). If implemented, the proposed Motor Vehicle Safety Administrative Monetary Penalties Regulation  (the Proposed Regulation) will enforce updates to the Act in 2018 which gave Transport Canada the ability to issue financial penalties for violations of requirements or orders made under the Act and the following regulations made under the Act:

• Motor Vehicle Safety Regulations;