Every state in the U.S. has a lemon law that gives consumers redress when they find that they’ve purchased a defective car and the manufacturer can’t (or won’t) fix it. In addition, there are a number of U.S. federal laws (like the Magnuson-Moss Warranty Act) that can be used to fight on behalf of consumers who have lemon vehicles.

In Canada, there is no national lemon law, but each province has some consumer protection statutes. Ontario tried to pass a lemon law in 2002, but the efforts were not successful. Consumers can, however, submit disputes to the Canadian Motor Vehicle Arbitration Plan (CAMVAP) for neutral third-party resolution.

According to the CAMVAP website,

CAMVAP covers most domestic and imported passenger cars, light trucks, sport utility vehicles, vans and multi-purpose passenger vehicles purchased or leased in Canada, as long as the vehicle is the current model or one of four previous model years.

Unlike U.S. arbitration, which is typically binding for the manufacturer but non-binding for the consumer, CAMVAP arbitration is binding for both parties. In other words, once the arbitrator has reached a decision, that’s the final word on the matter.

CAMVAP arbitration also limits the kinds of refunds and reimbursements that consumers can receive. For example, it can’t reimburse expenses to buy or lease a vehicle, void a purchase or lease agreement, or award exemplary or punitive damages.

As with any arbitration, if you enter into CAMVAP, you should have a lawyer at your side. Although it’s not mandatory to do so, keep in mind that car manufacturers have teams of lawyers who do nothing but fight lemon law claims. You’ll only be on equal footing if you have legal representation.

The bottom line? Canadian consumers seem to have far fewer protections than their U.S. counterparts.

Sergei Lemberg of Lemon Justice is sitting in the guest blogger’s chair today. He has some great info about what you can do if you wind up with a defective new or used vehicle.