2024 – Issue 2
OMVIC is pleased to announce the publication of our 2023 Annual Report, showcasing progress towards OMVIC becoming a modern, responsive regulator for Ontario’s motor vehicle sales industry. The report highlights new programs and initiatives, underscoring our commitment to achieving operational objectives.
The highlights:
Read the full report to learn more about the work that OMVIC is doing to enhance registrant professionalism and consumer protection for all Ontarians.
OMVIC has just launched our new 2024-2026 Strategic Plan. This plan marks a significant milestone in our commitment to enhancing the motor vehicle industry in Ontario. Developed through extensive consultations and collaboration with industry experts and stakeholders, our strategic plan is designed to address the evolving needs of dealers, salespersons, and the broader market.
Key highlights of the plan include:
This strategic plan will elevate OMVIC’s regulatory role and provide improved support to registrants. Together, OMVIC will navigate the future of the motor vehicle industry with compliance and professionalism.
As dealers and registrants, your active participation in realizing these strategic goals is important. OMVIC encourages you to review Our Strategic Plan and familiarize yourself with our strategic priorities.
OMVIC’s 2024 Annual Meeting, held on Wednesday, June 19, at the Novotel Toronto North York, was a significant event featuring notable achievements and updates.
Board Chair Virginia West and CEO Maureen Harquail highlighted OMVIC’s 2023 accomplishments, emphasizing the organization’s dedication to its mission and goals. West concluded her three-year term as board chair, providing exceptional leadership through significant milestones and challenges. OMVIC is grateful for her commitment and guidance.
The Honourable Todd J. McCarthy, Minister of Public and Business Service Delivery and Procurement, also spoke on the importance of OMVIC’s work and its collaboration with the ministry.
The agenda included corporate Articles of Amendment, the presentation of the 2023 audited financial statements, and the election of Board members. Daniel Hanna and Bruce G. Matthews concluded their one-year terms, and OMVIC thanks them for their dedicated service.
Congratulations to Patricia Perkins, appointed by the Minister of Public and Business Service Delivery and Procurement, to her new role as board chair for a one-year term. OMVIC would also like to welcome Rob Leggat of Team Honda Powerhouse of Milton who was elected as a new industry director, and Ken Kawall, MBA, CPA, CMA, who was elected as a new public director. This diverse and highly capable board, with its wealth of experience and expertise, will govern OMVIC for the 2024-25 term.
A complete list of the OMVIC Board of Directors can be found here. The board will hold an orientation session for new directors in August, with regular board and committee meetings commencing in September.
To view a recording of the Annual Meeting, you can view here.
A reminder that as of April 1, 2024, OMVIC’s transaction fee increased from $10.00 to $12.50. The fee applies to cars, vans, trucks, SUVs, and motorcycles. Dealers must self-report and remit fees annually, ensuring accuracy and truthfulness for inspections.
OMVIC stresses adherence to the $12.50 fee, noting some dealers have incorrectly charged $13. Dealers must include this fee in the total advertised price and itemize it in contracts to comply with regulations. Non-compliance will result in administrative action. For more information, read the full dealer bulletin here.
OMVIC recently carried out a major curbsiding operation. This example illustrates the prevalence of unregistered activity in Ontario and the risks associated with buying a car privately.
A tip to the Curber Hotline in April of 2023 led OMVIC investigators to uncover a large-scale curbsiding operation in North York. Five people were charged with a total of 150 charges related to unregistered activity (MVDA (Motor Vehicle Dealers Act)) and unfair practice (CPA). The curbsiders bought vehicles sold as “scrap” on various platforms and resold them to unsuspecting consumers at a significant profit. Many of these vehicles were not roadworthy and had hidden, undisclosed accident damage.
The following individuals have been charged:
Similar to consumer trades, when dealers trade vehicles amongst themselves, either directly or through an auction, they are obligated to disclose certain facts about the vehicle’s prior history and use. These disclosure requirements are contained in the Code of Ethics. If dealers have a complaint about the vehicle they purchased from another dealer through an auction, OMVIC’s Dealer Support team is here to assist. For more information, OMVIC has released a dealer guideline pertaining to auctions.
Ideally, all representations of vehicles appearing in advertisements should be of the vehicle being offered. When using a “stock photo” to promote a new vehicle, ensure the photo is of a model with features and a trim level that is available at the advertised price. For example, advertising a base model price with a photo of an upgraded trim level is misleading and does not comply with the Standards.
OMVIC has received complaints from dealers about ads that depict an extended cab version of a truck, but the price and other details are for a regular cab. This practice is unacceptable. Additionally, if a limited number of vehicles is available at the advertised price this should be indicated in a clear, comprehensible and prominent manner.
Used vehicles can vary greatly in their condition and features, and, as such, used vehicle advertisements that include an illustration should provide a specific photo of the vehicle being offered for sale. If the advertisement is for a number of similar models, ensure the photo provided is of a unit being offered at the advertised price.
Availability
If an advertisement includes the price of a vehicle, that vehicle must be available for sale at the time the advertisement is published.
If the vehicle has sold, or is no longer available at the advertised price, dealers should remove or edit the advertisement immediately to avoid “bait and switch” complaints. If an ad is for a limited supply of vehicles, it must indicate how many are available for the advertised price.
Advertising vehicles that are not in stock
If a factory order is required, this fact must be clearly and prominently disclosed in the ad. If it is an incoming vehicle not yet in stock, this fact must be clearly and prominently disclosed in the ad.
Imagery
If an advertisement includes a picture, but the picture is not of the actual vehicle, the picture must accurately reflect the make, model, trim level, model year and condition of the vehicle. If a dealer advertises a price for a new vehicle using an image provided by the manufacturer but the image is of a higher-priced trim level (or colour), the ad must also clearly and prominently include an explanation of the trim level (or colour) of the vehicle pictured and the all-in price for that model.
Yes, dealers are allowed to advertise a cash price and a financing price. Dealers and salespersons must remember that it is important to comply with the all-in price advertising law.
If an advertisement includes a vehicle’s price, the vehicle must be available for sale when the advertisement is published. If the vehicle is no longer available at the advertised price (e.g., it has been sold), dealers must promptly remove or update the advertisement.
Dealers who agree to pay off a trade-in’s outstanding loan must do so promptly. Failing to do so breaches their contract and violates section 9(5) of the Code of Ethics.
What it is:
What it isn’t:
Given that the legislation came into effect over 10 years ago, OMVIC is now enforcing stricter penalties. Repeat offenders may face higher fines, orders to cease false advertising, or other disciplinary measures.
