on.ca Winter 2013

.on.ca
Winter 2013
BREAKING
NEWS
Dealer Fined $12,500
for Non-compliant
Advertising
In this issue:
• 85 Charged in
Advertising Sweep
• Another Curbsider
Gets Jail Time
85 Charged in
Advertising Sweep
What started out as a curbsider sweep through Kijiji and
AutoTrader ads instead netted 85 dealers and salespersons
allegedly posing as private sellers.
Many of those charged advertised vehicles “for sale by owner” and
did not identify themselves as registered dealers. Others did list the
vehicle as “for sale by dealer” but did not include the dealership
name – both are contraventions of the Motor Vehicle Dealers Act
(MVDA), which requires dealers to include the dealership name and
registered phone number in all advertisements.
• New Seminar Available
to Dealers
• New Windshield Sale Signs
Assist with Compliance
FOR SALE
• From the Discipline Files
• Registration Reminder
PRIVATE SELLER
OR DEALERSHIP
89
85
3
1
CHARGES
LAID
FOR FAILING TO
IDENTIFY AS A DEALER
FOR FAILING TO
MAINTAIN RECORDS
FOR FAILING TO
TRANSFER OWNERSHIP
Read more inside
The Dealer Standard
is published by the
Ontario Motor Vehicle Industry Council
789 Don Mills Road, Ste. 800
Toronto, ON M3C 1T5
T: 416-226-4500
F: 416-226-3208
Toll Free: 1-800-943-6002
Executive Director: Carl Compton
Writer: Terry O’Keefe
Registration Reminder.
Renewing? Don’t Lapse Out!
The MVDA requires all registrants be registered in order to operate.
Late renewals may take many weeks to process so avoid business
interruptions; renew registration on time. Remember your renewal
date –­don’t rely on an OMVIC reminder – keep your registration in good standing.
New Seminar
Available to Dealers
When selling a used car, dealers are required
to disclose:
a if a vehicle was involved in a collision that
resulted in $3,312 damage
b if a vehicle was registered in Alberta five
years ago
c if a vehicle’s ABS system isn’t working
(but the brakes do pass safety inspection)
d if a vehicle’s A/C system isn’t cooling
properly
e a & c but not b & d
f
a, b &c but not d
Okay, it was a trick question – by law, dealers
must disclose “all of the above,” and yet OMVIC
complaint handlers routinely hear from
consumers who have not been made fully
aware of the history or condition of the vehicles
they were sold.
The MVDA requires dealers to make a full
disclosure of 22 specific details related to the
past-use, history and condition of each vehicle
sold or leased as well as the more general
disclosure of material fact. So, do you know all
of the required disclosures? If not, OMVIC’s new
Disclosure Seminar may help. This seminar,
like the advertising seminar launched in 2012,
is available from your OMVIC Inspector, or by
contacting the Communications and Education
team ([email protected] ) – and there’s
no charge.
All right, one more question: if a dealer
provides disclosure verbally, and has a witness
to the conversation, does that disclosure meet
the requirements of the MVDA?
NO. Disclosure must also be provided
in writing on the contract in a clear,
comprehensible and prominent manner.
New Windshield
Sale Signs Available
to Assist with Compliance
required disclosure statement in clear,
comprehensible and prominent language.
OMVIC has created “windshield signs” dealers
can use to advertise the price of their vehicles.
There are signs for all-in prices, as-is and unfit
sales, and finance offers; and each has the
OMVIC made them available to help dealers
comply with MVDA advertising regulations.
“Dealers must remember that an advertisement
is any inducement to buy or lease – that includes
signage on the vehicle itself,” said Terry O’Keefe,
OMVIC Manager of Communications and
Education. “We encourage dealers to download
and use the signs; they’re free, they help ensure
compliance and they provide transparency and
build trust with customers.”
The signs can be downloaded from OMVIC’s
website, omvic.on.ca.
FOR SALE
More on OMVIC’s advertising sweep...
Dealer Advertising MUST Meet the
Requirements Outlined in the MVDA
PRIVATE SELLER
OR DEALERSHIP
Dealers may substitute the word “DEALER” for their full dealership name only when there are space or time
constraints – and such constraints do not exist on Kijiji or in AutoTrader. “Over the past two years, OMVIC has
published reminders in bulletins and newsletters that dealer ads must include the dealership name and phone
number,” stated Carey Smith, OMVIC Director of Investigations. “Failing to do so denies consumers the
transparency the Act requires and it’s unfair to all those dealers who comply with the requirements.”
Investigation Results – Charged Are:
WORLD’S FINEST CARS CORPORATION
Richmond Hill
ROBERT EARLHamilton
KK MOTORS CANADA INC.Toronto
WALID KENOUNWhitby
EVON’S AUTO CLINIC INC.Toronto
NADIR NASSERIMarkham
FEICHT RAYMOND O/A AYR AUTO SALESWilmot
1444500 ONTARIO INC. O/A MANVILLE AUTO REPAIRToronto
ORV’S COLLISION CENTRE INC.London
JAROUDI, IMAD O/A SHOP N TRAD AUTO SERVICEOttawa
MIKE GALAZKA SERVICE CENTRE LTD.Ottawa
WALSH’S AUTO SERVICE LIMITED O/A
ETOBICOKE’S FINEST AUTO SALES PRISTINE MOTORS INC.London
DILLON AUTO CENTRE INC.Windsor
MUHAMMAD YOUNUS GHORI O/A FRIENDS
AUTO AND ENGINEERING JACKSON CHRISTOPHERMilton
PASZKIEWICZ, CZESLAW O/A C & M MAGIC AUTOOttawa
Caledon
DOWDALL, GREGORY O/A AUTO 4 YOUPerth
WOODSTOCK CHRYSLER SALES (1970) LTDWoodstock
CHAMESEL-DIN HASSAN O/A SELECT AUTOOttawa
ANTHONY PETEROUS VAN BOMMEL O/A
TONY VAN BOMMEL USED CARS
1745195 ONTARIO LIMITED O/A
SUPER GAS AND EQUIPMENTKingston
Ilderton
BAROUD RONY O/A RONY’S AUTO SALESOttawa
RACHAD EL-HOUSSAMIWindsor
BRIAN MCFARLANELondon
DESMOND LAFFERTY
St. Catharines
SHAPOOR GHARIBZADAToronto
EVON BROCKETTN/A
LARRY ROMPHFIlderton
DENNIS MCARAWaterloo
HANS SCHINKER
Grey Highlands
DANNY PASNYKKitchener
BRAZEAU MARC E O/A
MARC AUTO CENTREClarence-Rockland
JIA HONGJUN ZHAO GUOLING O/A
HORNGYM AUTOMOTIVE SERVICE Windsor
STYPSIANOS JOHN I O/A YANNIS AUTOSHamilton
RAMI M SAAD O/A GALAXY AUTO SALESScarborough
PRECISION AUTO SALES LTD.London
1803952 ONTARIO INC. O/A CITY AUTOMOTIVEToronto
HALE MELANIE O/A TRIPPS AUTO RECYCLERSPeterborough
R K AUTO CENTRE (CANADA) INC.Toronto
KHOSRO MALEKJAHANIToronto
CRUISIN AUTO SALES BROCKVILLE LTD. O/A
CRUISIN AUTO SALESMallorytown
JOHN DE OLIVEIRABrampton
EMIL’S AUTO BODY LIMITEDKitchener
KAJENDRAN KASIPPILLAIMississauga
729752 ONTARIO INC O/A COLLINGWOOD
AUTO EXCHANGECollingwood
HAJI AHMADToronto
ALI KAZMIKeswick
TERRY MCGILLWelland
LESIECZKO,BOGDAN O/A CARBANIK CAR SALESBrantford
HAMAD GULZAR O/A ASRA AUTOScarborough
Continued on the next page
Page 2
Toronto
89
85
3
1
CHAR
LAID
FOR
IDEN
FOR
MAIN
FOR
TRAN
Dealer Fined $12,500
for Non-compliant
All-In Price Advertising
IRSHAD, NAEEM & QURESHI, ZAFAR O/A
BUY RIGHT AUTOToronto
KAVANAUGH GARNET O/A CLASS “A” DEALSWindsor
SOUSA KEVIN O/A AUTOMAXLondon
659676 ONTARIO LIMITED O/A
KIPLING CAR AND TRUCK SERVICEToronto
LAFFERTY EARL J. O/A
EARL & SON CUSTOM AUTO BODY
For the second time in 13 months, Cowan Buick GMC Limited
was convicted for advertising a vehicle price that was not an
all-in price, in contravention of the MVDA.
St. Catharines
MAJANO JUAN O/A FRIENDLY AUTO & MORELondon
In July 2012, OMVIC investigators observed used vehicle
advertisements placed by Cowan in a local Clarington
newspaper. The advertisements made no mention that taxes
were not included in the advertised price as is required by
the MVDA. Posing as a consumer, an investigator attended
the dealership to enquire if the advertised price of $29,995
for a 2010 Acadia was the final drive-away price.
A salesperson told the investigator there were other fees
to be added including: $179 administration fee + $179
etching fee + $5 OMVIC fee + $3,946.54 taxes – making
the actual price $34,304.54. A week later and again posing
as a consumer, an investigator returned with another
advertisement and, as before, additional fees (admin,
etching, OMVIC, gas) and taxes were added to the
advertised price.
JAI SINGH O/A J AUTO SALES & SERVICEToronto
2032811 ONTARIO INC O/A
HARRAD AUTO SERVICESBrampton
RAMA AUTO INC.Toronto
545665 ONTARIO LIMITED O/A
CONESTOGA CAR SALESKitchener
2243693 ONTARIO LIMITED O/A SEAWAY MOTORSBrockville
AKHI EHSAN O/A TEAM AUTO SALELondon
TRANSIT CARAVANE & AUTOS LTEEPlantagenet
ZHANG DAXIN O/A UCARS KENNEDYToronto
FALLS CHEVROLET CADILLAC BUICK GMC LTD.
Niagara Falls
DRAGOMIEROW LODMIEL NIKOLOW O/A
CARS FOR YOUWindsor
HAJAK IVAN O/A HAYAK’S AUTO BODYCambridge
The dealer was charged, pled guilty and was fined $12,500
(includes 25% Victim Fine Surcharge).
RIVERVIEW SERVICE CENTRE LIMITED O/A
CRAWFORD MOTORSChatham
All Dealers are again reminded of the following advertising
requirements:
MATHEW JOHN O/A ROSH DISTRIBUTIONScarborough
R.S CAR SALES LTD.Mississauga
ADAMS NICK O/A KARS R USMississauga
ALL-IN PRICING
CHAUDHRY, BABAR O/A CARS DOMEMississauga
If a dealer ad includes a price for a vehicle, that
price must include ALL charges related to the sale
of the vehicle. This includes:
2047868 ONTARIO LTD O/A CARS R USLondon
2174943 ONTARIO INC. O/A I DRIVE AUTO SALESWhitby
DIB,HOUSSAM O/A A & H AUTOMOTIVE TRADINGOshawa
All-In Price
BEST AUTOBODY & SERVICE INC. O/A
BEST AUTO SALEToronto
$ 18,500
OUTRAM, KEITH O/A UNIQUE RIDES AUTO SALESMississauga
LALLY SALES AND SERVICE LTD. O/A
LALLY FORD SALESTilbury
+ HST & Licensing
No Hidden Fees or Charges
BILLA CAR & TRUCK SALES INCBrampton
COLLIER MICHAEL & SHEPPARD BARBARA O/A
B AND M SALES
EXCLUSIVE FINE CARS INC.
• freight
• inspection charges
• safety inspection and emission
testing charges (unless vehicle
is advertised with required
“unfit” or “as-is” statement)
• administration fees,
other fees, levies and HST
Mount Brydges
Note – Dealers do not have to include HST (or licensing) in
the advertised price so long as the ad indicates in a clear,
comprehensible and prominent manner that HST and
licensing are not included.
North York
B & E CUSTOM INC.Smithville
Page 3
.on.ca
$18,000
Discipline Fine for
Failing to Disclose Unfit Status
Kamyar Agahi, operating as Prestige Carline,
has been ordered to pay an $18,000 fine
after the dealer’s advertising was found in
contravention of the Code of Ethics. In early
2012, the dealer placed numerous advertisements
that did not properly disclose vehicles were
being sold “unfit.” The dealer was reminded
of the requirement to include the proper
unfit disclosure statement in advertisements.
Later in 2012, the dealer placed a further
29 advertisements for unfit vehicles that also
lacked the required disclosure.
Dealers are once again reminded
of the following advertising
requirements:
AS-IS – If an ad includes a price for a vehicle being sold
as-is, it is NOT sufficient to simply state the vehicle is
being sold as-is. The ad must include in a clear,
comprehensible and prominent manner the following
statement:
“This vehicle is being sold “as-is,” unfit, not e-tested
and is not represented as being in road worthy condition,
mechanically sound or maintained at any guaranteed
level of quality. The vehicle may not be fit for use as a
means of transportation and may require substantial
repairs at the purchaser’s expense. It may not be possible
to register the vehicle to be driven in its current condition.”
UNFIT – If an ad includes a price for a vehicle that is not
certified and/or e-tested, the ad must state in a clear,
comprehensible and prominent manner:
“This vehicle is not drivable, not certified and not
e-tested.”
If a dealer intends to offer certification and e-testing for
a vehicle advertised as unfit, the following statement
must also be included in a clear, comprehensible and
prominent manner:
“Certification and e-testing are available for $XXX.”
“The $18,000 fine levied in this
case should make it clear OMVIC
intends to enforce the MVDA and
Code of Ethics vigorously,” said
Laura Halbert, OMVIC Director
of Compliance. “Dealers who fail
to abide by the rules don’t
provide transparency to
consumers and seek an unfair
advantage over the vast majority
of dealers who comply. That is
simply unacceptable.”
The exact fee must be disclosed in the aforementioned
statement. Certification and e-testing cannot be
mandatory charges. Vehicles advertised unfit may not be
sold at or above the advertised price using the as-is
clause on the bill of sale.
Note – If neither the AS-IS nor the UNFIT statement is
used, it is assumed the advertised price includes the cost
of the safety standards certificate and emissions test.
Dealer Fails to Comply with Discipline Decision: Fined
Additional $3,000 – In 2012, Erinwood Ford Sales Inc.
and David Raymond were found in breach of the Code of
Ethics for retaining an unregistered salesperson; failing
to provide written disclosure of a vehicle’s accident
history; and failing to disclose a former daily rental
history in an advertisement. At that time the dealer was
fined $6,000 and agreed “all current and future managers
in positions of authority over sales…will complete the
current OMVIC Certification Course” within 90 days.
Despite a reminder and extension, the dealer failed to
meet the requirement to have managers complete the
Certification Course, which led to another discipline
proceeding where the dealer was found in breach of
section 9 of the Code of Ethics that states “a registrant
shall not engage in any act or omission that, having regard
to all the circumstances, would reasonably be regarded as
disgraceful, dishonourable, unprofessional or unbecoming
of a registrant.” The dealer was fined a further $3,000.
The managers have now completed the course.
Page 4
Another Curbsider Gets Jail Time
Andre N. Campbell of Mississauga was sentenced to 32 days
in jail after being convicted on 16 counts of curbsiding.
Evidence presented at sentencing showed Campbell
had been convicted twice previously for curbsiding −
in 2001 and 2004. The fines imposed for those
convictions were never paid. In passing sentence,
His Worship Delano Europa agreed with the
prosecution’s submission that incarceration was
warranted in light of Campbell’s failure to pay past
fines and the aggravating factor that the accident
history of the vehicles sold was not disclosed to the
buyers, one of whom was a driver’s education
instructor who told Campbell the vehicle would be
used by his students.
“This sentence sends an important message to curbsiders,” stated OMVIC Director of Investigations
Carey Smith. “Retail automotive sales is a regulated industry in Ontario, and these regulations exist to
ensure a fair, safe and informed marketplace. OMVIC’s mandate is to ensure persons acting as
dealers meet the requirements set out by law.”
A Closing Thought
Much of this issue of The Dealer Standard dealt with
instances of non-compliance and the resulting
enforcement, but OMVIC recognizes dealers and
salespeople generally strive to provide superior service
and products to their customers. So, in keeping with
that spirit, we wanted to share the following video –
while the author may refer to car “salesmen,” we know
the sentiments expressed apply to all car salespeople.
So, here’s why “the universe gave us car salesmen.”
http://youtu.be/PAACjJ20-G0
Publication Mail
Agreement #40021863
The Dealer Standard
Return undeliverable
Canadian addresses to:
789 Don Mills Road, Ste. 800
Toronto, ON M3C 1T5