A Vehicle Lemon Law in Canada?

Organization

Automobile Consumer Coalition (ACC)

Published

2005

Summary

Since the advent of lemon laws in the United States more than two decades ago, consumers south of the border have been given a powerful tool to fight back against defective vehicles. According to the Center for Auto Safety, a non-profit US consumer group which ranks the effectiveness of state lemon laws, more than 100,000 US vehicles are bought back each year by manufacturers because of chronic mechanical failures or serious safety issues. After examining the US lemon law models and researching the opinions of stakeholders on both sides of the border, Car Help Canada has concluded that a clearly defined lemon law would benefit Canadian consumers if it were administered using a friendly and simple arbitration structure. The authors of this report envision a made-in-Canada solution that would avoid expensive court procedures in our clogged judicial system. One possible scenario would be to utilize the experienced arbitrators and administrators already employed by CAMVAP. However, if they are unable or unwilling to incorporate a lemon law into their current workings, then each province and territory should enact a provincial lemon law to be administered by an independent commission or tribunal. It should be noted at this point that CAMVAP’s leadership refused to participate in this study, so their cooperation on any proposed lemon law remains a large question mark.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database