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Some dealers still face disclosure, advertisement noncompliance issues, OMVIC inspectors find

February 10, 2021
Dealer Bulletins Selling

After over two thousand virtual and in-person inspections in 2020, OMVIC’s enforcement team issued 952 inspection finding reports to dealers identifying compliance challenges. The most common non-compliance issues included:

1.   disclosing material facts

2.   advertising legally

 3.   submitting third-party warranties

4.   completing contracts correctly

Data from OMVIC’s enforcement team shows dealer compliance is improving – almost 60 per cent of mystery shopped dealers passed in 2020, a 15 per cent increase from 2019 – however, disclosure and advertisement compliance are still a problem for some.

“Compliance with the law is critical to a fair and informed marketplace” OMVIC’s Director of Enforcement Steven Byrd said. “OMVIC has the tools to educate dealers and salespeople: if they are unsure, they should always ask first. We are here to help.”

With the province’s stay-at-home announcement on January 14 and restrictions lifting on certain regions, OMVIC’s inspectors may continue conducting inspections virtually. OMVIC supports all levels of government as they prioritize Ontarians’ health and safety.

What can dealers expect during virtual inspections?

OMVIC’s enforcement team will contact dealers due for an inspection by e-mail or phone. Dealers should be ready for a required list of items to electronically share or prepare for the inspection.

OMVIC inspectors may e-mail dealers inspection findings or closing notes after the inspection.

Documents registrants share with inspectors are retained under OMVIC’s access and privacy policy.

Learn to stay compliant

OMVIC offers free educational services about the MVDA to help registrants address non-compliance areas and succeed in 2021.

Stay compliant: check out OMVIC’s helpful resources for disclosure and advertising. Visit OMVIC’s MVDA requirements webpages for detailed information about disclosure, advertising, warranties and contracts.

OMVIC is committed to promoting a fair and informed marketplace for registered dealers. Its mandate includes a commitment to educate and help registrants comply with the Motor Vehicle Dealers Act (MVDA).

Have advertising questions? Contact OMVIC’s business standards team or book a free educational webinar with OMVIC staff today.