Creating a fair market for buyers and sellers
In August, the Ontario Motor Vehicle Industry Council (OMVIC) ran a media campaign to promote all-in price advertising. The campaign was designed to inform consumers about the all-in price advertising requirements: “one of the key protections received when buying from an OMVIC-Registered Dealer.”
The all-in pricing message is part of an ongoing initiative by OMVIC to provide more public awareness about the laws and guidelines that govern registered motor vehicle dealers across Ontario.
OMVIC is a self-managed body that administers Ontario’s Motor Vehicle Dealers Act (MVDA). Selfmanagement means that while the government makes the rules, OMVIC administers and enforces the rules on a day-to-day basis.
Its official mandate is to “maintain a fair and informed marketplace in Ontario by protecting the rights of consumers, enhancing industry professionalism and ensuring fair, honest and open competition for registered motor vehicle dealers.”
The Trillium Automobile Dealers Association (TADA) worked with the Ontario government and consumer groups to build the framework and guidelines that eventually became policies for OMVIC. Since 1997, OMVIC has regulated and monitored the activities of registered motor vehicle dealers and protected the rights of consumers.
The council 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 meet the requirements outlined in the MVDA.
If non-compliance issues are suspected, OMVIC can conduct investigations of dealerships. If a dealership or a staff member engages in activities that contravene the MVDA, OMVIC can take disciplinary action, including prosecution.
If a dispute arises between a consumer and a dealership, or between dealerships, OMVIC will attempt to resolve the issue in a fair and equitable manner.
One area of activity in which OMVIC is particularly vigilant is “curbsiders,” or illegal unlicensed dealers. Curbsiders prey on unsuspecting car buyers, often using false identification, false vehicle information and false circumstances throughout the sales process.
OMVIC actively investigates industry misconduct and curbsiding. To date in 2015, 30 individuals and businesses have been convicted on curbsiding charges laid by OMVIC. The penalties have included a sixmonth jail term and fines up to $50,000. Another 69 cases are currently before the courts.
OMVIC also promotes education programs for dealerships and public awareness campaigns for consumers. OMVIC even has guidelines to protect consumers against misleading advertising.
OMVIC scrutinizes dealer advertising on a regular basis. The font size of a disclaimer, disclosure information and the use of certain words and phrases in automobile ads are items that fall under OMVIC’s scrutiny.
Most registered dealerships have procedures to address issues of full disclosure, customer complaints and public awareness. To better understand how consumers are protected when purchasing a new vehicle, visit carsandjobs.com.
Most new-car dealerships operate in accordance with OMVIC’s guidelines and business practices, and OMVIC’s role in regulating and monitoring our industry is working. In 2014, OMVIC registered dealers sold approximately 1.2 million vehicles. Out of those 1.2 million transactions, OMVIC only received 1,048 formal complaints.
OMVIC relies on input from the public and other dealers. If you want to make an inquiry or a complaint, contact OMVIC at 416-226-4500, toll-free at 1-800-943-6002 or online at omvic.on.ca. This column represents the views of TADA. Email president@tada.ca or visit tada.ca. Doug Sullivan, president of the Trillium Automobile Dealers Association, is a new-car dealer in Huntsville, Ont.