Mandatory Paper Fuel Consumption Label a 1970s Solution to a Non-Existent Problem

OTTAWA, June 4, 2013 /CNW/ - A proposed regulation from Natural Resources Canada to make mandatory a paper label system that for years has been voluntary for car dealers in Canada represents an antiquated solution to a problem that is largely non-existent in Canada. The Canadian Automobile Dealers Association (CADA) urges the federal government to reconsider making paper fuel consumption labels for new cars and trucks mandatory, as it is currently considering.

"The Harper government has been clearly committed to reducing red tape for small business. This is clearly a step in the opposite direction and represents a 1970s solution to a problem that does not exist," said CADA Chief Economist Michael Hatch. "The reality is that today's consumer does not rely on paper labels to obtain information regarding the vehicles they are buying. The vast majority of our customers get this information online, on their smartphones, or through other literature widely available at all dealerships in Canada."

There currently is a label system in place for new cars in Canada, but it is voluntary. Dealers have the option to remove the labels if they are torn or otherwise damaged in transit or if their placement represents a safety hazard for test drives. The proposed regulation would change this, making paper labels mandatory for all new cars on dealers' lots.

"CADA has no problem requiring that fuel consumption information be made available in dealers' stores. All we ask is that we offer dealers a choice as to how this data is presented," continued Hatch. "Allow them to provide the information through paper labels affixed to cars, brochures in the dealerships, or online. Fuel consumption is the most important technical specification today's consumer is looking for. Dictating that paper must be the only way in which the information is shown to the consumer is wrong.

"For a government committed to the reduction of the paper burden on small business and of red tape at all levels in the Canadian economy, imposing nearly two million pieces of paper per year on our dealers is an antiquated solution to a problem that does not exist," said Hatch.

The Canadian Automobile Dealers Association (CADA) is the national association for franchised automobile dealerships that sell new cars and trucks. Our 3,300 dealers represent a key sector of Canada's economy. Through our dealers, we are represented in nearly every community and those dealers collectively employ over 130,000 people across the country.

SOURCE: CANADIAN AUTOMOBILE DEALERS ASSOCIATION (CADA)

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