In Canada, you wouldn't be allowed to call them an engineer if they didn't have professional certification as an engineer. It's against the law. People have been taken to court over it.
It's certainly something that could get them in trouble as it is against the law. It relies on reporting, so if no one reports the company, nothing specific will be done.
For example, Microsoft lost a lawsuit regarding the MCSE designation.
No. There are no real restrictions on the title of engineer in the US. In some industries (health, civil eng.) you need a PE for public safety reasons but it is rare for engineers to have them in general. A PE can be hard to get in many places because you need at least one coworker with a PE who can vouch for your work. Without one it is an impossibility. A system like Canada's would be nice to have to eliminate the cheapening of the title.
>A system like Canada's would be nice to have to eliminate the cheapening of the title.
Are the egos of the "real" engineers really worth the additional burden of this regulation? At best, it stops people using a word that was coveted by others. At worst it means more regulatory hoops to jump through when there was no problem in the first place.