Toronto Star

Meet the council protecting consumer rights

- Larry Lantz

When someone buys a new vehicle in Ontario, dealership­s must act not only in accordance with provincial laws, but also to a set of regulation­s and guidelines that governs the new-car industry.

These regulation­s and guidelines are enforced by the Ontario Motor Vehicle Industry Council (OMVIC), a self-managed body that administer­s Ontario’s Motor Vehicle Dealers Act (MVDA). More specifical­ly, OMVIC regulates and monitors the activities of registered motor vehicle dealers and protects the rights of consumers.

The Trillium Automobile Dealers Associatio­n (TADA) played a key role in helping to form OMVIC in 1997.

Our associatio­n worked with the Ontario government and consumer groups to draft the original framework and guidelines that serve as policies for OMVIC today. OMVIC is made up of a board of directors, including elected auto dealers and consumer representa­tives appointed by the consumer minister.

OMVIC is responsibl­e for all registered dealership­s and sales staff, dealer inspection­s and investigat­ions, complaint handling and maintainin­g profession­al standards. Anyone who operates a dealership or sells vehicles at a dealership in Ontario must submit to a screening process and meet the requiremen­ts outlined in the MVDA.

In addition to providing background checks on people who work in the industry, handling consumer complaints, inspecting dealership­s to ensure continued compliance with the law, conducting investigat­ions and prosecutio­ns, OMVIC also administer­s a code of ethics and discipline process, and oversees a mandatory training course on automotive law.

If non-compliance issues are suspected, OMVIC can conduct investi- gations of dealership­s. If a dealership or a staff member engages in activities that contravene the MVDA, OMVIC can take disciplina­ry action, including prosecutio­n. Consumers may wonder about OMVIC’s level of enforcemen­t, given that dealers are effectivel­y monitoring other dealers. The fact is, since OMVIC was introduced, it has conducted thousands of inspection­s and investigat­ions.

In February, a Mississaug­a man was sentenced to 50 days in jail for illegal vehicle sales — the industry term for this offence is “curbsiding.” Curbsiders are individual­s who are illegal, unlicensed dealers who prey on unsuspecti­ng car buyers, often using false identifica­tion, false vehicle informatio­n and false circum- stances throughout the sales process.

Curbsiders often promote vehicles using newspaper advertisem­ents, used-car websites and online classified sites such as Craigslist and Kijiji.

Another area that OMVIC oversees is advertisin­g. Prior to the establishm­ent of OMVIC, clear standards for dealer advertisin­g didn’t exist, and dealership ads could (and occasional­ly did) include improper claims with no repercussi­ons.

Readers may be aware of a current OMVIC ad campaign that promotes the message of all-in price advertisin­g. An all-in price includes all fees, predeliver­y inspection, freight, etc. Legally, the only amount of money the consumer may pay outside of the “all-in” advertised price would be the HST and licence costs. However, when the new MVDA came into effect in 2010, the Ontario government decided to exempt advertisem­ents placed by auto manufactur­ers from the legislatio­n.

As a consequenc­e, there are two sets of rules: one for registered dealers, who are obligated to include all fees in their ads, and one for manufactur­ers, who are not. This double standard has led to confusion and frustratio­n on the part of consumers and dealers. (It should be noted that some manufactur­ers have adopted the dealer advertisin­g model for their advertisin­g.)

The TADA fully supports all-in pricing and believes it makes the car-buying experience much easier and allows more transparen­cy for consumers.

For the past two decades, OMVIC has provided a blueprint for monitoring the activities of the retail automobile industry, ensuring that dealers operate with the highest profession­al standards and business ethics. It has also maintained a fair and informed marketplac­e by protecting the rights of consumers.

To make an inquiry or a complaint, contact OMVIC at 1-800-943-6002, ext. 3942, or online at omvic.on.ca. This column represents the views and values of the TADA. Write to president@tada.ca or go to tada.ca. Larry Lantz is president of the Trillium Automobile Dealers Associatio­n and is a new-car dealer in Hanover, Ont.

 ?? DREAMSTIME ?? For the past two decades, the Ontario Motor Vehicle Industry Council has maintained an informed marketplac­e by protecting the rights of consumers.
DREAMSTIME For the past two decades, the Ontario Motor Vehicle Industry Council has maintained an informed marketplac­e by protecting the rights of consumers.
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