OMVIC Dealer Standard – Fall 2013

.on.ca
Fall 2013
In this issue:
• OMVIC Wraps Up Another
Successful Consumer
Awareness Campaign
• OMVIC’s Website Gets
a Facelift
• Problematic Trends
• Advertising Warranties
on CPO Vehicles
• Serious Fines in Recent
Discipline Decision
• Windsor Dealer Receives
Jail Sentence
• Say It Ain’t So…
• Season’s Greetings
Season’s Greetings
OMVIC staff would like
to wish all dealers and
salespersons a joyful
holiday season and a
happy New Year. OMVIC remains
committed to providing excellence
in service to all stakeholders as
we continually strive to ensure a
fair and informed marketplace
for Ontario consumers and
dealers alike.
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
Writers:Terry O’Keefe
Sarah Choudhury
OMVIC Wraps Up Another
Successful Consumer
Awareness Campaign
OMVIC’s annual Fall Consumer Awareness Campaign is wrapping up
and early results prove it to be another success. The theme of this year’s
campaign was “You’re Protected.” Launched in mid-September, the
campaign promoted awareness of the protections consumers receive
from Ontario’s consumer protection laws when they buy from an OMVICregistered dealer (specifically all-in pricing, full disclosure of vehicle
history, rescission rights (for specified non-disclosures), and access to
the Motor Vehicle Dealers Compensation Fund), while making it clear
that private purchasers
receive none of these
protections. Secondary
messages of the
campaign warned
consumers of the
dangers posed by
curbsiders and increased
awareness of OMVIC’s
role as regulator.
Read more inside
OMVIC’s Website Gets a Facelift
Dealers and salespeople may have
noticed major improvements to
OMVIC’s websites (omvic.on.ca and
buywithconfidence.ca). Designed with
a fresh new look and user-friendly
navigation, the website offers quick and
easy access to important information
for registrants and consumers alike.
Problematic Trends
OMVIC inspectors continue to see a growing
number of dealers selling vehicles to so-called
exporters, without conducting any due diligence to
ensure the buyers are actually OMVIC-registered
exporters. The Used Car Dealers Association
(UCDA) also reports that it continues to hear about
this issue from its members despite bulletins
being issued. Put a stop to this problematic trend
by doing the following:
Ensure Exporter is OMVIC-Registered
The Motor Vehicles Dealers Act, 2002 (MVDA)
requires exporters (i.e., dealers in the business of
purchasing vehicles for the purpose of exporting
outside of Ontario) to be registered with OMVIC.
Individuals in the business of exporting vehicles
without OMVIC registration are considered
curbsiders. Selling to curbsiders is a serious
breach of the MVDA and OMVIC expects dealers to
take reasonable steps to ensure they do not supply
curbsiders with inventory. If dealers are unsure
of the registration status of a buyer who claims
to be an exporter they can check the purchaser’s
registration on OMVIC’s website (https://www.
omvic.on.ca/RegistrantSearch/index.aspx); dealers
can also ask to see the person’s registration
certificate. The MVDA requires all dealers and
salespersons to carry their certificate while
conducting business and to present it to anyone
who asks to see it. Dealers can also contact
OMVIC directly to confirm the status of an exporter
by calling 1-800-943-6002 ext. 5105.
Request Proper Bill of Lading
The only acceptable proof of export is in the form
of a bill of lading. A bill of lading can only be issued
once the vehicle has been delivered to a shipping
company – also known as a common carrier. It is
the common carrier that provides the bill of lading
which must clearly identify the overseas destination.
The UCDA advises that “pre-made” or “in-house”
bills of lading are not sufficient documentation and
cannot be used for tax exemptions.
Importance of Charging HST
Dealers are cautioned to ensure adherence to
the Canada Revenue Agency (CRA) requirements
surrounding HST. Vehicles are only exempt from
HST if the dealer ensures they are delivered to a
buyer outside of Canada. Otherwise, HST must
be collected.
Advertising Warranties on CPO Vehicles
It has recently come to OMVIC’s attention that some dealers are advertising certified pre-owned (CPO)
vehicles that include a manufacturer’s warranty stated in term/mileage (e.g., 6 years or 120K). While this
in and of itself is fine, if the manufacturer’s warranty is actually based on the vehicle’s original in-service
date then the advertisement must clearly and prominently state the actual warranty available is the
balance or remainder of a manufacturer’s warranty (e.g., comes with balance of 6 year/120K warranty).
The Code of Ethics requires dealer advertising to be clear and truthful; an ad suggesting the full
warranty applies, when it does not, is neither clear nor truthful.
More than 120 MILLION Impressions
to be Generated from OMVIC’s
Consumer Awareness Campaign
OMVIC conducted the 2013 campaign using diversified forms of media including
online (Kijiji.ca and autoTRADER.ca − specifically targeting consumers shopping for
vehicles), TV, print, billboards and through engagement with mainstream media.
OMVIC also sponsored the Lemon-Aid Car Show on
Rogers Community Channel 10 in Toronto; the show
airs weekly on Tuesday nights at 9 p.m. with five
weekly repeats until May 2014.
This year, a new “tool” was introduced as part of
the awareness campaign: an interactive online quiz.
The Car-Buying Quiz, permanently available from
OMVIC’s website, is a fun and engaging way to let
consumers test their vehicle-buying knowledge while
educating them on their car-buying rights in Ontario
(see some of the survey results below).
Page 2
Why conduct a campaign?
Educating
consumers (and
registrants) is
vitally important
and a key part of
OMVIC’s mandate.
Ensuring consumers
know what their rights are, when those rights apply
(i.e., only when buying from a registered dealer) and
when they don’t (when buying privately) provides an
important service to Ontario consumers and helps
build trust in OMVIC-registered dealers. Betterinformed consumers helps prevent
problems and ensures that
those who value
consumer protection
seek out the services
of a registered dealer.
Findings & Results (at the time of writing)
Media Outlet
Impressions (possible views)
Online (Kijiji.ca, autoTRADER.ca, Toronto Sun)
28,734,600
Television (CP24 and OMNI)
34,624,200
Out of Home (digital billboards)
32,790,000
4,082,700
Public Relations/Media
It’s expected the campaign will generate in excess of 121,000,000 impressions (possible views), each an
opportunity to educate Ontarians that “You’re Protected” when you buy from an OMVIC-registered dealer.
Quiz Results
As was mentioned previously, this year’s campaign
introduced a Car-Buying Quiz. Kijiji and autoTRADER ads
challenged readers to take the quiz and test their carbuying savvy. The quiz was hugely popular and yielded
some interesting results:
65%
knew a curbsider was an
unlicensed dealer
75%
understood retail vehicle sales in
Ontario were regulated by OMVIC
74%
understood that they are only
protected by consumer protection laws
when they buy from a registered dealer
43%
said they would buy privately even
knowing they were not protected by
consumer protection legislation
21%
mistakenly believed they were
protected when buying privately
The results from this year’s consumer awareness
campaign will undoubtedly assist Ontario vehicle-buyers
and dealers. 2013’s theme “You’re Protected” will
continue to resonate in OMVIC’s future messaging.
Take OMVIC’s Car-Buying Quiz!
Visit omvic.on.ca/portal/quiz
Page 3
.on.ca
Serious Fines in Recent Discipline Decision
421342 Ontario Ltd, o/a Kingston Nissan
and CarOne, as well as Trevor Cotton,
were recently fined a total of $27,000
for breaches of OMVIC’s Code of Ethics
regulation (CoE).
In an agreed statement of facts the
discipline panel heard the dealer failed to
provide required disclosures including:
ailure to disclose out-of-province
• F
history on a contract
ailure to disclose former daily rental
• F
history on a contract
The panel also found the dealer’s
advertising to be non-compliant in the
following areas:
dvertisements failed to prominently
• A
disclose vehicles were being sold as-is
dvertisements failed to disclose the
• A
former daily rental status of vehicles
dvertisements failed to include an
• A
all-in price
As well, it was found the dealer
employed unregistered sales staff and an
unregistered business manager.
In determining the fines, the discipline
panel stated “the penalty is appropriate
to the circumstances” and the panel was
satisfied “the penalty was sufficient to
deter the registrant from similar acts,
while sending an appropriate message to
other registrants about their obligations
with respect to advertising and disclosure
of material facts in writing.” It should
be noted Discipline Panels are made up of
three individuals, two of whom are dealers.
In finding the parties in breach of the CoE
and MVDA the panel ordered the following
penalties:
Kingston Nissan fined $8,000
• CarOne branch fined $8,000
• Cotton ordered to pay $9,000
• The parties were also ordered to pay the
Registrar’s costs ($2,000) and Cotton was
ordered to successfully complete the OMVIC
Certification Course.
All Discipline Decisions must be made
public as mandated by the MVDA. To access
this discipline decision in full and to
view previous decisions, visit OMVIC’s
website at: http://www.omvic.on.ca/portal/
DealersSalespersons/EnforcementCompliance/
DisciplinaryProcess/DisciplineDecisions.aspx
Windsor Dealer Receives Jail
Sentence
Hussain Al Manhsor
was sentenced to
180 days jail time and his deal
ership
1659560 Ontario Inc. operatin
g as
Sandwich Auto has been fined $90,
000 on
multiple counts of breaching
the MVDA.
The Windsor-area man and comp
any were
convicted of:
• T
rading off premises
• R
etaining unregistered sales
staff
(two counts)
• F
alsifying documents
• F
ailing to provide a purchase
r with
required financing information
(CPA)
• Failing to maintain required
records
(six counts)
• F
ailing to provide a copy of
the Bill
of Sale
Manhsor was sentenced to 15 days
(to be
served consecutively) on eac
h of the
12 charges. Sandwich Auto was
fined
$7,500 on each count.
Page 4
Say It Ain’t So…
It is with heartfelt thanks and appreciation that OMVIC bids farewell
to Melinda Williams, OMVIC Project Director at Georgian College’s
Automotive Business School of Canada (ABSC); Melinda retires
December 19 after more than 16 years of service.
Melinda began her Georgian College career in
administration for International Studies in 1997.
In 1999, she found herself in charge of the fledgling
“OMVIC Project,” a new department responsible for
developing and administering the OMVIC Certification
Course. Fourteen years later, it’s clear Melinda’s
talented management, ongoing efforts to improve the
program and commitment to the partnership between
Georgian College and OMVIC has been the foundation
of its great success. Melinda’s team at ABSC now
delivers the Automotive Certification Course to
5,500 students every year!
the partnership OMVIC shares with Georgian College,”
states Marie-Noëlle Bonicalzi, Dean of ABSC.
OMVIC’s Manager of Education, Terry O’Keefe
couldn’t agree more. “Melinda’s genuine interest
in providing a superior educational experience to
students, her exemplary customer service skills and
her unquestionable dedication to excellence will be
truly missed. OMVIC would like to thank Melinda for
her years of dedicated hard work; not just for OMVIC,
but for each and every dealer and salesperson who
successfully completed the Certification Course.
We wish her much happiness and good fortune.”
“Melinda is well respected by her colleagues for her
ability to facilitate and anticipate the needs of the
industry without ever compromising the integrity of
Publication Mail
Agreement #40021863
The Dealer Standard
Return undeliverable
Canadian addresses to:
789 Don Mills Road, Ste. 800
Toronto, ON M3C 1T5