A guide for towing and vehicle storage service providers

Overview

There are rules that apply to towing and storage providers under the:

• Consumer Protection Act, 2002 (CPA)- requirements remain in effect until December 31, 2023
• Towing and Storage Safety and Enforcement Act (TSSEA)
• Highway Traffic Act (HTA)
• Repair and Storage Liens Act (RSLA)

This guide explains many of the rules you must follow as a towing and storage service provider and what you need to know when dealing with consumers.

Who should use this guide

The rules in this guide apply to:

Tow service operator

Owns, operates, or drives a commercial vehicle used to provide tow services, and is required to hold or carry a valid Commercial Vehicle Operator’s Registration (CVOR) certificate, or is exempt from the CVOR requirement because the operator meets an equivalent requirement in another Canadian jurisdiction.

Storage service operator

Provides storage services for vehicles towed or transported to their premises by or on behalf of a tow and storage services operator.

Tow truck broker

Arranges for the hiring of tow services provided by a tow truck they do not own or operate.

Tow truck driver

Drives or has care and control of a tow truck for the purposes of providing tow services to a consumer.

Tow truck

A tow truck is a:

• commercial motor vehicle with a flatbed that can tilt to load and is used exclusively to tow or transport other vehicles

• vehicle that is designed, modified, configured or equipped so that it is capable of towing other vehicles. This does not include:
  • off-road vehicles
  • personal use vehicles that are used infrequently to tow other personal use vehicles for no compensation
  • personal use motor homes that tow other vehicles that are for the personal use of the motor home driver
  • commercial towing vehicles using a saddlemount configuration

General rules

As a towing and storage provider, you must:

• get authorization from a consumer or someone acting on their behalf (for example, if the consumer has been removed from the scene of an accident) before providing or charging for the towing and storage services
• record the name and contact information of the consumer or person authorizing the tow, along with the date and time of the authorization
• disclose certain information in writing, including:
  • name of the tow provider
  • contact information (phone number and business address)
  • address to which the vehicle will be towed
• have a current statement of rates posted at all business locations and on your company website (if you have one), and provide it to any person upon request
• provide an itemized invoice listing the services provided, the cost for each service and the total cost, before asking for or receiving payment
• accept payment by credit card or cash
• tell the consumer if you have a direct or indirect interest in a particular storage or repair shop to which the consumer’s vehicle may be towed (for example, if you receive a kickback or financial incentive from the shop)
• allow the consumer to access their vehicle to remove personal property between 8 a.m. and 5 p.m. on business days, at no charge
• not provide recommendations for repair and storage facilities, legal service providers or health care service providers, unless the consumer or person acting on their behalf specifically asks for a recommendation or you offer to make a recommendation and that person accepts
• have insurance coverage for, at a minimum:
  • $2 million in liability insurance for personal injury or death and loss or damage to property
  • $100,000 in consumer vehicle insurance
  • $50,000 in cargo liability insurance
• keep records for three years, including:
  • copies of consumer authorizations and disclosure records
  • copies of invoices
  • copies of the required insurance policy
  • statement of rates

For more information refer to Part VI.1 of the CPA and Part VI.1 of O. Reg. 17/05 under the CPA.

Signage

You must have the following information visible on both sides of the tow truck, at all business locations and on your website (if you have one):

• your name (and if different, the name under which you conduct your business)
• your phone number
• your municipal business licence number (if applicable)

If you operate more than one tow truck, a unique number must appear on both sides of each tow truck. Letters and numbers on the tow truck must be at least 8 cm in height. The information posted at all business premises must be clear, prominent and understandable to all customers.

Exemptions

Roadside assistance

Certain disclosure, authorization, invoice and record-keeping requirements related to these items do not apply if you are not charging the consumer for the specific services provided. This is because the services are provided either:

• under a prepaid agreement or membership in an association, such as the Canadian Automobile Association (CAA)

• in connection with a purchased or leased vehicle

Refer to prepaid agreements and association memberships for more information.

Law enforcement or lawful power of seizure

Only some of the rules apply when a vehicle is towed and stored (or detained and impounded) for law enforcement purposes or under a lawful power of seizure. While these tows are not initiated by the consumer, they are generally responsible for charges.

Refer to impoundment or lawful seizure of vehicles for more information.

Liens

If you met the requirements above relating to disclosure, authorization, invoice, insurance and disclosure of interest under the CPA, you may be able to claim a lien under the Repair and Storage Liens Act.

If you were required to get the consumer’s authorization before towing their vehicle and failed to do so, you cannot claim a lien for that tow service.

Under the CPA, a tow and storage provider must not charge more than:

• their usual price for services merely because the cost is to be paid by an insurer or another third party
• 10% above an estimate that was authorized by the consumer, unless the consumer (or a person acting on their behalf) agreed to change the estimate to cover additional or different services
• their usual price for services because the services were provided for law enforcement purposes, unless there is an agreement in place that contains terms of payment

Giving notice to the vehicle owner

If you are storing a vehicle subject to a lien and received it from someone other than its owner or a person with the owner’s authority, you must notify the owner and other interested parties of the lien in writing (for example, secured parties who have registered their interest in the vehicle, such as lease and finance companies).

15-day notice

For vehicles registered in Ontario, you must provide the consumer with a notice within 15 days after the day you received the vehicle.

If you fail to do so, your lien is limited to the unpaid amount owing for that period. You must provide notice to the consumer within 60 days after the day you receive the vehicle for out-of-province vehicles.

You can give written notice by:

• email
• fax
• delivery in person
• certified or registered mail
• prepaid courier

Repair and storage costs

If the RSLA rules apply and no amount has been agreed upon for repair and storage costs, the court may determine a fair value. The judge must consider certain factors, such as:

• fixed costs
• variable costs
• direct costs
• indirect costs
• profit
• any other relevant factors

For more information, please refer to the RSLA and O. Reg. 427/15 under the RSLA.

Commercial vehicle operator’s registration certificate

All tow truck operators in Ontario must hold or carry a valid Commercial Vehicle Operator’s Registration (CVOR) certificate. The CVOR operator is the person or legal entity (person/company operating the business) responsible for the operation of the tow truck(s), including the conduct of all drivers and the security of loads.

If you are an out-of-province tow truck operator, you may be exempt if you meet an equivalent requirement in another Canadian jurisdiction.

Learn more about the CVOR certificate or contact:

Ministry of Transportation
Carrier Safety and Compliance Branch
301 St. Paul Street, 3^rd Floor
St. Catharines, ON  L2R 7R4

Phone: 416-246-7166
Toll-free: 1-800-387-7736 (within Ontario)
Email: CVOR@ontario.ca

Provincial certificate

As of July, 4, 2023, the Towing and Storage Safety and Enforcement Act (TSSEA) requires tow operators, tow truck drivers and vehicle storage operators to have a provincial certificate to operate.

Find out how to apply for or renew a certificate.

Prepaid agreements and association memberships

Some consumers enter into prepaid agreements or purchase memberships in an association that provides tow and storage services. Many vehicle dealers also provide free roadside assistance with the purchase or lease of a vehicle.

In these situations, if the consumer is not being charged for the specific service you are providing, you do not have to:

• disclose the required information to the consumer or a person acting on behalf of the consumer before the consumer or person gives authorization
• obtain authorization from the consumer or a person acting on behalf of the consumer before providing the specific services
• provide a detailed invoice
• maintain the corresponding records

You are still required to comply with the remaining CPA provisions, such as:

• posting the required identifiers and other information on both sides of all tow trucks, at all business locations and on your website (if you have one)
• having the required minimum level of insurance coverage
• publishing rates and making them available at all business premises, on a website in a form that can be reproduced, if one is maintained, and to any person upon request
• disclosing any direct or indirect interest in a location or facility to which the consumer’s vehicle may be towed before services are initiated. The nature and extent of the interest must be disclosed to the consumer or a person acting on the consumer’s behalf
• maintaining all relevant records under the CPA for at least 3 years
• obtaining and holding a valid Commercial Vehicle Operator’s Registration (CVOR) certificate

Recommendations for services

You cannot provide recommendations for certain services to a consumer or a person acting on their behalf, unless they ask for a recommendation or you offer to make a recommendation and the consumer or person agrees. These services include:

• salvage yard
• repairer
• storage yard
• garage
• building or place to which the vehicle may be towed
• legal services
• health care services

If you provide a recommendation, you must:

• disclose whether or not you or anyone else receives any benefits and considerations (for example, a kickback) from making the recommendation
• provide this disclosure in writing, or create a written record of a verbal disclosure
• provide a copy of the the disclosure to the consumer

Services not covered by prepaid agreement

If a consumer requests additional services that are not covered under the prepaid agreement, membership or roadside assistance, the above exemptions do not apply. You must meet all requirements in the general rules.

Impoundment and lawful seizure of vehicles

Tow and storage services may be needed for a vehicle that is being impounded or detained for law enforcement purposes or under a lawful power of seizure. In these situations, a consumer does not initiate the services but is usually responsible for paying the charges.

In these cases, a limited number of the CPA rules apply. As a provider, you are required to:

• post the required identifiers and other information on both sides of all tow trucks, at all business premises and on a website, if you have one
• publish rates and post them at all business premises, on a website in a form that can be reproduced, if you have one, and to any person upon request
• accept credit card payments
• not provide recommendations for any particular salvage yard, repairer, storage yard, garage, building or place to which the vehicle will be towed, legal services or health care services unless:
  • the consumer or person acting on their behalf specifically asks for a recommendation, or you offer to make a recommendation and they agree
  • you disclose whether or not you or anyone else receives any benefits and consideration from making the recommendation (for example, a kickback)

You cannot charge more than you usually would for tow and storage services only because the services were for law enforcement purposes, unless there is an agreement in place that contains terms of payment.

Contact us

If you have any questions about about your requirements under the Consumer Protection Act, please contact:

Ministry of Public and Business Service Delivery
Consumer Services Operations Division
Box 450
Toronto, ON  M7A 2J6

Tel: 416-326-8800
Toll-free: 1-800-889-9768
TTY: 416-229-6086
Toll-free TTY: 1-877-666-6545
Email: consumer@ontario.ca

If you have questions about your requirements under the Towing and Storage Safety and Enforcement Act, please contact:

Ministry of Transportation
Commercial Safety and Compliance Branch
301 St. Paul Street, 3^rd floor
St. Catharines, Ontario
L2R 7R4

Tel: 416-246-7166
Toll-free: 1-800-387-7736 (within Ontario)
Email: towing@ontario.ca