Silverstein: It's Time to Revisit Licensing

Soon after closing my shop, I began the mind-numbing task of sorting through decades' worth of Hot Rod and trade magazines. As I sifted through the contents of countless boxes of magazines, separating those bound for recycling from those I would keep, I found myself stopping to reread columns about the business of auto repair that were written many years ago.

The topics were familiar: adapting to new technology, shifting societal expectations, combating public distrust, employee issues, industry regulation, and economic pressures. These recurring subjects caused me to reflect on the current state of the industry and the need for change. The more I read, the more I noted that shop owners still gripe about these same issues and seem just as unwilling now to create the environment they claim to want to see. To this, the saying “doing the same thing over and over and expecting different results is the definition of insanity” is applicable.

Advanced Technology & Regulations

It should come as no surprise to anyone by now that one of the most significant changes in our trade is the rapid advancement of technology. But inasmuch as I am loath to admit it, the technology change requires that we reexamine the need for some manner of regulation. This isn't your father’s Oldsmobile; we need to get serious about training and safety. It's time to have an in-depth discussion about licensing. Make no mistake, I’m not a fan of what I consider to be an overreaching governmental intrusion in my life. I don't want to do this, but if we are to be honest, we must begrudgingly acknowledge that some small amount of government involvement in critical areas of safety is necessary, prudent, and there's ample precedent for it, too.

Effective Regulations Protect Customers

The goal of licensing, whether by professional association or government mandate, should be to provide a safeguard for consumers against unethical behavior and substandard repairs. However, the reality is that attempts at regulation in the U.S. and in Canada have fallen well short of expectations. For instance, lawmakers in Michigan enacted the Motor Vehicle Service and Repair Act in 1974, and yet, after 50 years in existence, complaints are frequently filed each year about deceptive trade practices and the unscrupulous shops that perform them. The punishment for violating the law is a misdemeanor and a fine of up to $1,000 or up to 90 days in jail. If the offense is egregious enough, the shop may lose its ability to legally operate a repair business, which seldom happens.

In Canada, government licensing requirements have also failed to deliver on the promises made. “The Ministry of Government and Consumer Services in Ontario oversees the licensing of automotive technicians and shops. However, a review of the program reveals that it is more focused on administrative tasks, such as license renewals and fees, rather than ensuring shops meet minimum standards of competence and honesty.”

How Effective Regulations Work

These examples highlight the need for a different approach to program design, enforcement, and regulation. Rather than requiring shops to register or obtain a license, effective regulation should:

Focus on establishing clear guidelines for industry best practices while ensuring shops adhere to these standards.
Provide swift enforcement of consequences for non-compliance (something which is currently absent). Regular site inspections, stricter standards for technician training, certification (including skills-based testing), and mandatory continuing education must be present. Guidelines and enforcement alone aren't enough.
The public must be made aware of the necessity to have service work performed by qualified professionals and the potentially devastating consequences if they don't. This public awareness campaign must be funded by the combined efforts of individual repair shops that recognize the necessity of becoming involved in charting a course for the future of our trade.

Effective Regulations Lead to Higher Accountability

By taking a more proactive and consumer-focused approach to regulation, the auto repair industry can build trust with the public and demonstrate its genuine commitment to excellence and safety. The time is ripe for lawmakers and regulatory bodies to work with shop owners to create a system that prioritizes consumer safety and satisfaction. By doing so, we can create a fair and transparent system that benefits everyone involved, from consumers to reputable shop owners and their employees. Ultimately, effective regulation, whether through the government or a professional association, is key to driving out unscrupulous shops and promoting a culture of accountability and professionalism within the industry.