OMVIC OMVIC Advertising and Disclosure Rules 2 — Questions and Answers
Question 1: Under OMVIC's advertising standards, which of the following must be disclosed in a vehicle advertisement that promotes a specific sale price?
- All fees, charges, and taxes payable by the consumer to drive the vehicle off the lot (Correct answer)
- Only the base vehicle price excluding HST
- The dealer's cost price and profit margin
- The original manufacturer's suggested retail price only
Correct answer: All fees, charges, and taxes payable by the consumer to drive the vehicle off the lot
OMVIC requires that advertised prices must represent the total amount the consumer will pay, including all mandatory fees and charges (except HST and licensing fees, which must still be clearly disclosed). Hidden charges not included in the advertised price are prohibited.
OMVIC's Registrar's Standards require that vehicle advertisements include all mandatory fees in the advertised price or clearly disclose them. The goal is to prevent bait-and-switch tactics where a low headline price attracts buyers who then face additional charges. Dealers must ensure any price shown is the true price the consumer pays (plus HST and licensing), and all other fees such as freight, PDI, and admin fees must be included or explicitly broken out.
Question 2: A dealership's website lists a used car as 'Certified Pre-Owned' without it having undergone any manufacturer-approved inspection program. This advertisement would be:
- Misleading and in violation of OMVIC advertising standards (Correct answer)
- Acceptable as long as the dealer performed their own inspection
- Permitted if the vehicle is less than 5 years old
- Allowed if a disclaimer is added in small print
Correct answer: Misleading and in violation of OMVIC advertising standards
Using the term 'Certified Pre-Owned' implies the vehicle has met specific manufacturer program standards. Using this label without the vehicle having gone through the actual program is false and misleading advertising under OMVIC standards and the Motor Vehicle Dealers Act.
OMVIC's advertising standards and the Consumer Protection Act prohibit misleading representations. 'Certified Pre-Owned' is a specific designation tied to manufacturer-backed inspection programs with warranties. Applying this label to vehicles that haven't completed such a program misleads consumers about the vehicle's condition and warranty coverage. Even a disclaimer in fine print does not cure a fundamentally misleading headline claim.
Question 3: When advertising a lease deal, OMVIC standards require that dealers disclose:
- The monthly payment, total lease cost, down payment, lease term, annual kilometre allowance, and residual value (Correct answer)
- Only the monthly payment and lease term
- The monthly payment and total number of payments
- Just the down payment and monthly payment
Correct answer: The monthly payment, total lease cost, down payment, lease term, annual kilometre allowance, and residual value
OMVIC requires full transparency in lease advertising. All material terms affecting the consumer's total cost and obligations must be clearly disclosed, including monthly payment, down payment, term, kilometre limits, and residual/buyout value.
Under OMVIC advertising standards, lease advertisements must disclose all key terms so consumers can make informed comparisons. This includes: the monthly payment, required down payment or cash due at signing, lease term in months, annual kilometre allowance and excess kilometre charge, and the residual value or purchase option price. Omitting any of these key terms makes the advertisement incomplete and potentially misleading.
Question 4: A dealer advertises a vehicle with the phrase 'No credit? No problem!' but only approves customers with a minimum credit score of 650. This is:
- A false and misleading advertisement that violates OMVIC standards (Correct answer)
- Acceptable because it is a common marketing expression
- Permitted if the full credit criteria are listed on the dealer's website
- Fine as long as the dealer approves at least some customers with poor credit
Correct answer: A false and misleading advertisement that violates OMVIC standards
Advertising 'No credit? No problem!' while imposing standard credit requirements is a false and misleading representation. It induces consumers with poor credit to visit the dealership under false pretenses, which violates OMVIC advertising standards and the Consumer Protection Act.
OMVIC considers any advertisement that creates a false impression — regardless of intent — to be misleading. The phrase 'No credit? No problem!' leads reasonable consumers with poor or no credit to believe they will be approved. If the dealer applies standard credit criteria, this is a deceptive inducement to visit the dealership. OMVIC can take disciplinary action against dealers who use such tactics, and the dealer could also face liability under the Consumer Protection Act.
Question 5: Under OMVIC's advertising rules, which statement about online used vehicle listings is correct?
- Dealers must ensure online listings are accurate and updated promptly when a vehicle is sold (Correct answer)
- Online listings are exempt from OMVIC advertising standards because they are not traditional media
- Dealers may leave sold vehicles listed online for up to 30 days as a good faith measure
- Online photos need not accurately represent the actual vehicle being sold
Correct answer: Dealers must ensure online listings are accurate and updated promptly when a vehicle is sold
OMVIC advertising standards apply to all advertising media including online listings. Keeping a sold vehicle listed online misleads consumers and wastes their time. Dealers must remove or update listings as soon as a vehicle is sold or unavailable.
OMVIC's advertising standards are media-neutral — they apply to websites, social media, online marketplaces (AutoTrader, Kijiji Autos), and any other digital platforms equally. Dealers must not allow ghost listings to remain active after a vehicle is sold. Doing so can attract consumers under false pretenses and constitutes misleading advertising. Prompt removal is a basic obligation of accurate and honest advertising.
Question 6: A dealer's advertisement states a vehicle is 'accident-free' based solely on the customer trade-in's CarProof showing no reported accidents. OMVIC's position on this claim is:
- The claim could be misleading if the dealer has not independently verified the vehicle's history through a physical inspection (Correct answer)
- The claim is fully acceptable because a CarProof report is an authoritative source
- The claim is acceptable as long as CarProof is cited in the advertisement
- The claim is always acceptable for vehicles under 3 years old
Correct answer: The claim could be misleading if the dealer has not independently verified the vehicle's history through a physical inspection
CarProof/Carfax reports only capture reported incidents. An 'accident-free' claim can mislead consumers if the dealer relies solely on a database report without conducting a proper physical inspection to verify the vehicle's actual condition.
OMVIC expects dealers to exercise due diligence before making affirmative claims about vehicle condition or history. A vehicle history report only reflects incidents that were officially reported; many repairs and collisions go unreported. Claiming a vehicle is 'accident-free' without a proper physical inspection or structural assessment can mislead consumers into believing the vehicle has no damage history when it may. Dealers should qualify such claims appropriately or perform sufficient inspection to support them.
OMVIC OMVIC Advertising and Disclosure Rules 2
Under OMVIC's advertising standards, which of the following must be disclosed in a vehicle advertisement that promotes a specific sale price?