Notices of Defect and Recall Campaigns

NOTICES OF DEFECT AND RECALL CAMPAIGNS

The attached package contains information designed to assist manufacturers, importers or distributors of motor vehicles who are required to issue a Notice of Defect or to conduct a recall campaign to correct a non-compliance.

The information contained in this package is designed to offer a quick reference to the requirements of Section 10 of the Motor Vehicle Safety Act and Section 15 of the Motor Vehicle Safety Regulations. This information package should not be considered a legal document and should not be considered to contain all applicable paragraphs of the Motor Vehicle Safety Act or its Regulations.

Part 1: Outlines the acceptable procedure for issuing a Notice of Defect to the Minister of Transport or for notifying Transport Canada of the intention to recall.

Part 2: Suggests the contents of the owners' notification letter.

Part 3: Lists the requirements of Section 15 of the Motor Vehicle Safety Regulations.

Part 4: Announces that the recall campaign completion rate reports are required on a quarterly basis and suggests the minimum content of the report.

Further questions concerning recall campaigns should be directed to:

Head of recalls
Road Safety and Motor Vehicle Regulation
Transport Canada, 80 Noël St. 
Gatineau, Quebec J8Z 0A1
Telephone number: (819) 994-3328

RE: Notice of Defect Under Section 10, Motor Vehicle Safety Act and Defect Information, and under section 15, Motor Vehicle Safety Regulations 

This deals with initial information to be sent to the Minister of Transport pursuant to Section 10 of the Act and Section 15 of the Regulations. In respect of any individual defect notification campaign, the initial information should, whenever possible, be sent by facsimile (613) 991-5802 to the following address: 

Head of recalls 
Road Safety and Motor Vehicle Regulation
Transport Canada, 80 Noël St. 
Gatineau, Quebec J8Z 0A1 
Telephone number: (819) 994-3328 

The initial information should, whenever possible, be sent so as to be received by the Minister prior to release of the campaign to the news media. 

The initial information should include the following: 

• name of company giving such notice; 
• make, model, model year, vehicle identification number or serial number range of vehicles included in the campaign: this number shall be the VIN (rather than any other serial number) and the period of manufacture of the vehicles being campaigned; 
• the total number of vehicles in Canada affected, and the estimated percentage that may contain the defect;
• a description of the defect; and 
• a statement of the measures to be taken to repair the defect.

Where Section 10 (4) of the Act requires an evaluation of the safety risk related to the defect, this should be included in the description of the defect and should take the form of the probable consequences to the vehicle should the defect occur.

Other information required pursuant to Section 15 of the Regulations should follow this initial information within 60 days.

PART 2  

DEFECT NOTIFICATION

The Notification of Defect to vehicle owners should contain:

1. Opening statement: - "This notice is sent to you in accordance with the requirements of the Canada Motor Vehicle Safety Act".

2. Second statement: - (Manufacturer's name) has determined that a defect which relates to motor vehicle safety exists in (complete identification of the motor vehicle or item of motor vehicle equipment).

3. Clear description of defect, including:

• Identification of the vehicle system or component in question;
• Description of the malfunction that may occur;
• Operating conditions that may cause the malfunctions; and
• Precautions to be taken before repairs are made.

4. Evaluation of the risk to traffic safety including:

• When there is a potential for a crash, if there will be a warning or not. If there is warning, a description of the warning; and
• Where there is a potential for a crash, an indication of the general type of possible injury to occupants and bystanders.

5. Measures to be taken to correct the defect, including:

• General description of the work to be done;
• estimated date when parts and instructions will be available;
• estimated time required to correct the defect; and
• if the correction will be free of charge.

6. If there will be a charge for the correction, the notification will also include:

• Estimate of the cost of the correction;
• name and part numbers of parts required, where and when available;
• detailed description of the work to be done; and
• the manufacturer's suggestion as to whom can carry out the correction.

7. A statement informing the owner that he may complain to the Road Safety and Motor Vehicle Regulation Directorate if:

• The notification or correction is inadequate;
• the manufacturer fails to correct in accordance with the notification; and
• the manufacturer fails or is unable to correct within 60 days.

8. The notification shall not imply that the defect does not exist.

9. The notification shall be in both official languages.

PART 3 

DEFECT NOTIFICATION

15. (1) The notice of defect referred to in subsections 10(1) and (3) of the Act shall be given in writing and shall indicate

• the name of the company that is giving the notice;
• the identifying classification of each vehicle in respect of which the notice is given, including its make, model, model year, vehicle identification number and the period during which it was manufactured;
• the estimated percentage of the potentially affected vehicles that contain the defect;
• a description of the defect;
• an evaluation of the safety risk arising from the defect; and
• a statement of the measures to be taken to repair the defect.

(2) A company shall, as soon as practicable after a notice of defect is given, submit to the Minister a report referred to in subsection 10(6) of the Act containing, in addition to the information required by subsection (1), the following information:

• the total number of vehicles affected by the notice of defect and the number of such vehicles in each identifying classification;
• a chronology of all principal events that led to the determination of the existence of the defects; and
• copies of all notices, bulletins and other circulars issued by the company in respect of the defect, including a detailed description of the nature and physical location of the defect with diagrams and other illustrations as necessary

(3) For the purposes of subsection 10(6) of the Act, the quarterly reports to be submitted following the report referred to in subsection (2) shall contain the following information:

• the number, title or other identification assigned by the company to the notice of defect;
• the number of vehicles affected by the notice of defect;
• the date that notices of defect were given to the current owners of the affected vehicles; and
• the total number or percentage of vehicles repaired, including vehicles requiring inspection only.

Established by the CONSOLIDATED REGULATIONS OF CANADA, 1978
Amended by: SOR/95-147 effective April 12, 1995

PART 4

QUARTERLY REPORTS - MOTOR VEHICLE RECALL CAMPAIGNS

Quarterly reports on recall campaigns are required in accordance with an amendment to the Motor Vehicle Safety Act. Specific information is requested so that owner response and vehicle correction data may be evaluated.

Section 10(6) and (7) of the Motor Vehicle Safety Act require company that causes notice to be given under subsection (1) shall submit a report containing prescribed information respecting the defect and its correction to the Minister in the prescribed form within the prescribed period and quarterly thereafter.

Unless the Minister otherwise directs, the quarterly reports shall be submitted for a period of two years after the day on which notice was given under subsection (1)

The following is the prescribed form for each report:

• the number, title or other identification assigned by the company to the notice of defect;
• the number of vehicles affected by the notice of defect;
• the date that notices of defect were given to the current owners of the affected vehicles; and
• the total number or percentage of vehicles repaired, including vehicles requiring inspection only.

The reports shall be sent as soon as practicable after the end of each quarter to:

Head of recalls
Road Safety and Motor
Vehicle Regulation
Transport Canada, 80 Noël St. Gatineau, Quebec J8Z 0A1