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Consumer - Towing and Storage Safety and Enforcement Act, 2021 (TSSEA, 2021). Thibault and Ramsay v. Attorney General of Ontario
In Thibault and Ramsay v. Attorney General of Ontario (Ont Divisional Ct, 2025) the Divisional Court dismissed a JR, this challenging part of an Ontario regulation [Towing and Storage Safety and Enforcement Act, 2021 (TSSEA, 2021), Reg. 167/23] on charter and ultra vires grounds. The regulation provision [Reg. 167/23, s.2(d)(i)] challenged disqualified a person from holding a "tow certificate, tow driver certificate or vehicle storage certificate" if "the person is subject to a court order, conditions of parole or an undertaking to a peace officer prohibiting him or her from, ... possessing a weapon".
Here the court reviews the TSSEA, 2021 legislation:[2] The regulatory regime for the tow truck industry was recently overhauled, giving rise to the Act and the Regulation. This major reform followed a decade of reports and submissions to the government identifying serious problems in the industry, including crime and consumer exploitation threatening the well-being and lives of customers, employees, and others.
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New Regulatory Regime for the Towing Industry
[20] The Towing and Storage Safety and Enforcement Act, 2021, was enacted to regulate the towing industry, given the persistent and serious problems in that industry. Widespread problems were identified in a series of reports, including a 2012 report of an anti-fraud task force,[1] a 2014 report from the Towing and Storage Advisory Group,[2] and a 2021 report of the Towing Task Force.[3]
[21] The Ontario government struck the Towing Task Force in 2020 in response to concerns raised about incidents of “criminal activity and violence in the towing industry.”[4] The Task Force consulted widely, including, among others, towing industry representatives and law enforcement agencies. The earlier reports were also the product of significant consultation.
[22] Among other problem areas, the Task Force concluded that recent increases in violence and crime in the sector had created an unsafe environment for customers, enforcement officials and tow operators. A large portion of the respondents to the Task Force indicated that Ontario should prioritize licensing for tow truck drivers.
[23] The Towing Task Force made numerous recommendations to increase safety and enforcement, clarify protections for customers, improve industry standards and strengthen penalties for violators.
[24] The Task Force recommended a comprehensive provincial oversight model. In response, Ontario passed the Towing and Storage Safety and Enforcement Act, 2021.
[25] The Act’s goals include protecting customers receiving towing services and people working in the industry, supporting legitimate operators, and combating crime and fraud in the sector. The Act includes certification requirements for drivers and operators as well as consumer protection measures, professional standards for towing services, prohibitions against harmful practices and fraud, and complaint procedures.
[26] The certification regime at issue in this application begins with ss. 2 and 3 of the Act. Sections 2 (for tow operators) and 3 (for tow truck drivers) prohibit the provision of towing services without a certificate. Section 5 then provides that the Director[5] may issue a certificate if the applicant meets the prescribed qualifications and requirements, except in certain circumstances set out in s. 5(3):(3) Regardless of whether an applicant or certificate holder meets the prescribed qualifications and requirements for a certificate, the Director,
(a) shall refuse to issue or renew the certificate in the prescribed circumstances; ...
(b) may refuse to issue or renew the certificate,
(i) if the applicant or holder owes an outstanding fee, fine or administrative penalty, or any interest or penalty in respect of such a fee, fine or penalty, under this Act, the Highway Traffic Act or the Provincial Offences Act,
(ii) if the Director determines that a prescribed circumstance applies, or
(iii) for any prescribed reason.
[Emphasis added.] [27] Section 64 of the Act then provides for broad regulation-making authority, including regulations governing conditions and requirements for a certificate, giving rise to O. Reg. 167/23.
[28] Before putting forward the Regulation, there were further consultations. Among other things, there was a Technical Advisory Group with key stakeholders. The decision to include criminal record screening requirements in the Regulation was informed by Ontario’s goals to combat criminal activity in the towing industry and protect consumers interacting with the industry. Over one hundred submissions were received, including from towing service providers and law enforcement groups.
[29] After extensive consultations and other research, including a review of the regimes in place at the municipalities that had attempted to address the issues, the Ministry of Transportation put forward the regime for certification that is now included in the Regulation. The Regulation listed specific offences and court orders that would preclude a person from becoming certified. The offences were grouped, and some offences permitted certification after the passage of a period of time.
[30] The submissions sent to Cabinet described how the Act was a response to the growing violence and criminal activity in the towing industry and that the Act was enabling legislation that required regulations. The submissions indicated that the certification system was the “core” of the Act and the “primary mechanism” by which the Act would improve outcomes for the industry and for Ontarians. Among the benefits expected from the Regulation, the submissions noted the reduction of violence and crime.
[31] O. Reg. 167/23 was approved by Cabinet.[6] Section 8 of the Regulation sets out mandatory “qualification and requirements” to obtain a tow certificate for tow operators, one of which is as follows:3. The applicant does not have a disqualifying record of convictions or charges as described in section 2. [Emphasis added.] [32] There is a parallel provision under s. 15 (1) 4 for a tow driver certificate.[7]
[33] Section 2 of the Regulation then provides that a person has a “disqualifying record of convictions or charges” if the person falls within a list of categories, including the following:(d) the person is subject to a court order, conditions of parole or an undertaking to a peace officer prohibiting him or her from,
(i) possessing a weapon, ...
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