Measurement Canada compliance policy

Issue date:
Effective date:
Revision number: N/A


Table of contents


1.0 Executive summary

Measurement Canada (MC), an agency of Innovation Science and Economic Development Canada (ISED), is responsible for ensuring the integrity and accuracy of trade measurement in Canada through the administration and enforcement of the Weights and Measures Act (WMA) and Regulations as well as the Electricity and Gas Inspection Act (EGIA) and Regulations.

MC is responsible for ensuring that businesses and consumers receive fair and accurate measure in trade transactions involving goods and services. This results in a Canadian marketplace that is efficient and competitive.

The Agency develops and administers the laws and requirements governing measurement; evaluates, approves and certifies measuring devices used in trade and responds to complaints of suspected inaccurate measurement.

As part of its ongoing mission to ensure accuracy and equity in the marketplace and to improve compliance, MC uses authorized service providers (ASPs) to conduct periodic examinations. ASPs are monitored by MC on an ongoing basis.

MC monitors the marketplace by carrying out examinations of trade devices and net quantity verifications of commodities or services sold on the basis of measure. Devices are examined and inspected at prescribed intervals to determine compliance.

2.0 Purpose

The purpose of this policy is to communicate to regulated parties and other interested stakeholders MC's approach to compliance and to set forth the tools used by the Agency to promote compliance with the EGIA and the WMA. The overarching objective of this policy is to standardize the approach to compliance management and enforcement actions.

3.0 Definitions

Authorized service provider

Organization with delegated authority to perform work such as device examinations, verifications and reverifications. Organizations that perform device examinations under the Weight and Measures Act are accredited or registered, while those that perform verifications and reverifications under the Electricity and Gas Inspection Act are accredited.

Contractor

Any person or organization that sells electricity or gas on the basis of measurement. Contractors can also be meter owners.

Dealer

Person who in the course of his or her business sells, consigns, imports, leases or lends devices.

Examination

Testing of a device used in trade by a designated or authorized person or verification of the quantity of a product or service by a designated person to verify compliance with the Weights and Measures Act. This activity was previously referred to as an inspection.

Inspection

Testing of an electricity or gas meter by a designated person or accredited organization to verify that it complies with the Electricity and Gas Inspection Act.

Non-compliance

For the purposes of this document and any other compliance or enforcement-related documents, a non-compliance refers to a contravention of any section of the Electricity and Gas Inspection Act or the Weights and Measures Act. A non-compliance is sometimes referred to as a violation, infraction, non-conformity or contravention.

Stakeholder

Individual or organization that may be affected by trade measurement accuracy and Measurement Canada's policies.

Trader

Anyone who sells, purchases, exchanges, consigns leases or provides any commodity, right, facility or service on the basis of measure. This also includes anyone who provides facilities for measuring. Traders can be device owners.

4.0 Guiding principles of the compliance policy

MC is guided by the following general principles:

  • Regulated parties are responsible for knowing the legislative requirements to which they are subject and for ensuring the accuracy of their device or of stated quantities of commodities.
  • MC works with regulated parties to help them understand legislative requirements.
  • Enforcement activities are carried out in an objective and consistent manner.
  • MC continually improves compliance programs and policies.
  • Compliance options are exercised in a manner that fosters conformity with regulatory requirements while considering the economic impact on the public.
  • Enforcement activities are carried out by trained and designated personnel.
  • MC personnel carry out their activities in a manner consistent with ISED's Values and Ethics Code.
  • Alleged violators have access to recourse mechanisms established in the legislation.

5.0 Roles and functions

5.1 General

Several parties have important roles and responsibilities in regulating and contributing to national compliance with the EGIA and the WMA. The key authority and responsibility centres are presented below.

5.2 Regulatory parties

Minister of Industry

Responsible for the general administration of the EGIA and the WMA.

President

Responsible for the direction and general supervision of activities related to the administration of the EGIA and WMA, as well as the enforcement of compliance with the EGIA and the WMA. The President exercises the authority of the Director for the purposes of the EGIA.

Innovative Services Directorate

Plans, develops, implements and monitors the Agency's quality management systems, technical training and Alternative Service Delivery programs.

Program Development Directorate

Plans and develops national policies, procedures and specifications, as well as legislative and regulatory reforms, and assesses their impact.

Corporate Services

Provides planning and performance evaluation, business applications coordination, client services, communication services, Web publishing and administrative, human resources and financial services.

Engineering and Laboratory Services Directorate

Provides engineering consultation and advice, measuring device approval evaluation and measurement standards calibration services.

Regional directors

Responsible for ensuring that policies and requirements are effectively and consistently implemented and administered within their region.

District managers

Responsible for ensuring that policies and requirements are effectively and consistently implemented and administered within their district.

Inspectors

Responsible for promoting, monitoring and enforcing compliance with the EGIA and the WMA. Agency personnel with various titles and specializations (e.g., managers, officers, specialists, auditors and inspectors) are officially designated as inspectors under the EGIA and the WMA.

Attorney General of Canada

Responsible for all litigation relating to the EGIA and the WMA. MC presents information to the Department of Justice which, on behalf of the Attorney General, considers whether to proceed with a prosecution under the applicable statute.

Federal, provincial and territorial courts

Responsible for making the final decisions regarding prosecutions for offences and the imposition of penalties.

5.3 Regulated parties

Device owners are responsible for:

  • ensuring that all measuring devices in their possession or under their control and used in trade comply and continue to comply with regulatory requirements both before and during use
  • keeping records containing associated information related to the administration of the EGIA

Traders are responsible for ensuring that:

  • all measuring devices in their possession and used in trade meet the applicable requirements of the WMA
  • any goods or services bought or sold on the basis of measure meet all the applicable accuracy and labelling requirements outlined in the Weights and Measures Regulations (WMR)

Dealers are responsible for ensuring that they follow all applicable sections of the WMA regarding the selling, leasing, lending, consigning or importing of measuring devices.

Contractors are responsible for:

  • registering as sellers of electricity or gas when the sale is based on measurement
  • using only approved and verified meters for this purpose
  • ensuring that these meters are appropriately processed in regards to reverification
  • providing, within reason, the equipment and facilities necessary for the purposes of providing EGIA services

Device manufacturers, as applicants for device pattern approvals, are responsible for:

  • demonstrating that their devices meet and will continue to meet regulatory approval requirements throughout their production and service
  • providing all performance and regulatory conformance data and any related quality, reliability and technical information to objectively support their application
  • ensuring all design or production changes that can affect measurement accuracy are properly authorized

Authorized service providers have the delegated authority to conduct device verifications, reverifications and examinations under an accreditation or a registration agreement and are responsible for:

  • verifying the compliance of trade devices with the requirements of the EGIA and the WMA
  • adhering to the policies and procedures of their documented quality management systems in the case of accredited organizations and to the applicable requirements of the accreditation or registration agreements
  • keeping associated records necessary for the administration of the EGIA and the WMA
  • meeting all conditions of accreditation listed in the EGIA and in the MC document S-A-01—Criteria for the Accreditation of Organizations to Perform Inspections Pursuant to the Electricity and Gas Inspection Act and the Weights and Measures Act, in the case of ASPs carrying out electricity and gas inspections
  • meeting all conditions of accreditation listed in MC document S-A-01—Criteria for the Accreditation of Organizations to Perform Inspections Pursuant to the Electricity and Gas Inspection Act and the Weights and Measures Act, in the case of ASPs carrying out weights and measures examinations under the accreditation program
  • meeting the conditions of registration outlined in the Registration Program Terms and Conditions in the case of ASPs carrying out weights and measures examinations under the registration program

6.0 Compliance activities

6.1 General

MC performs the following activities in the areas of promotion, monitoring, enforcement, and program review and improvement to increase compliance with the EGIA and the WMA. Where warranted, MC uses risk-based analysis to determine the appropriate actions to promote and enforce compliance.

6.2 Promotion

6.2.1 Providing information and education

The Agency provides information on its legislative and regulatory requirements, services, alternative service delivery and publications on its website. Informational meetings or educational seminars, including ad hoc meetings with industry associations and working groups, may also be held as demand and interest warrants.

6.2.2 Public consultation

The public is asked to participate in consultations on new regulatory requirements. This provides affected Canadians the opportunity to express their views and to help shape the new requirements.

6.2.3 Communications

MC communicates with stakeholders, including traders, contractors, vendors and consumers through formal or informal meetings, brochures, presentations, consultations, information bulletins and other online tools and publications on its website.

MC may also publish the following documents on its website:

  • notices of violations and compliance agreements resulting from non-compliance with the EGIA or the WMA
  • a list of ASPs in good standing and those whose accreditation or registration has been suspended or revoked

6.3 Marketplace monitoring

6.3.1 Device examinations

MC annually plans and conducts random and selected examinations of measuring devices used in trade, where strategically necessary, to monitor and enhance marketplace compliance. The Agency collects data on the performance and compliance of devices to help guide its monitoring and enforcement programs and to analyze trends in an effort to identify potential issues in the marketplace.

6.3.2 Re-examinations of repaired devices

MC performs follow-up examinations of devices that don't comply with the WMA and the WMR and require repairs or adjustments.

6.3.3 Audits

The Agency performs periodic surveillance audits of accredited organizations' quality management systems as well as product audits of devices examined by the accredited organizations.

6.3.4 Follow-up examinations

MC conducts annual meetings with registered service providers and performs follow-up examinations to monitor the work these organizations are authorized to conduct.

6.3.5 Measurement disputes

The Agency provides expertise to resolve measurement-related disputes that may occur between contractors and purchasers. The information obtained can be used for marketplace monitoring.

6.3.6 Commodity examinations

MC also monitors the marketplace for compliance with the WMA by randomly conducting net quantity examinations of prepackaged products destined for non-retail use, products sold in bulk and commodities that are weighed or measured in the presence of the purchaser at the time of sale.

6.3.7 Complaint investigations

As part of its marketplace monitoring program, the Agency investigates reports of:

  • device inaccuracy
  • performance-related defects and non-conformities
  • short measures of products and services sold on the basis of measurement

It also investigates allegations of organizations' non-compliance with legal requirements.

6.4 Responses to non-compliance

In instances of non-compliance with the EGIA or the WMA, MC uses a progressive enforcement approach depending on the nature and severity of the offence or violation. MC's enforcement approach consists of the following enforcement tools.

6.4.1 Education

In order to correct non-compliances and to prevent non-compliance, MC educates traders, contractors and vendors through formal or informal meetings, information letters, brochures, presentations, consultations, information bulletins and other online publications.

6.4.2 Warning letters

The purpose of warning letters is to advise regulated parties that a non-compliance has occurred and that further enforcement action will follow if corrective measures are not taken. MC may issue warning letters when a serious non-compliance occurs or when a minor non-compliance arises after inadequate correction of a previous minor non-compliance.

6.4.3 Corrective action requests

Agency representatives issue written requests to regulated parties to take action to correct non-compliance where warranted. Written requests include identification of the non-conformance and specify a date by which a formal response is expected. Corrective actions should prevent future recurrences of the non-conformance and the implementation of the corrective actions should be followed up where warranted.

6.4.4 Notices of non-compliance

MC issues notices of non-compliance for devices that do not conform to the requirements of the WMA and the WMR, and do not meet the criteria for seizure established by MC's enforcement policies. These devices remain in service, but must be repaired or adjusted within a specified time frame.

6.4.5 Seizure

Devices and measured commodities that do not conform to the requirements of the WMA and meet the criteria for seizure established by MC's enforcement policies are placed under seizure and are only released when acceptable corrective actions have been taken to ensure they meet the requirements of the Act.

6.4.6 Administrative orders

The Director adheres to specific instructions set forth in the EGIR with respect to content or publication in the Canada Gazette and secures the Minister's agreement as necessary in order to issue written administrative orders with respect to non-compliance.

Orders address such matters as the suspension or revocation of permission under the EGIA, a meter approval or an accreditation, or the withdrawal of meters from service.

6.4.7 Administrative monetary penalties

MC uses administrative monetary penalties as an option in response to non-compliances with the EGIA or the WMA. This option is typically used as an alternative to prosecution for serious or repeat non-compliances, to escalate the enforcement when less severe enforcement actions do not correct the problem. In certain circumstances, administrative monetary penalties may be used in conjunction with other enforcement actions, except prosecutions.

6.4.8 Prosecutions

MC makes recommendations to the Department of Justice regarding prosecution of any case of non-compliance that has escalated to the point that less severe enforcement actions in response to non-compliance have been ineffective and no other solution is evident, or where the seriousness of the case does not lend itself to appropriate alternative responses within the Agency's direct authority.