OMVIC OMVIC All-In Price Advertising and Standards 1 — Questions and Answers
Question 1: Under OMVIC's advertising standards, what does the 'all-in price' requirement mean for a vehicle advertisement?
- The price must include HST and licensing fees
- The advertised price must include all fees and charges except HST and licensing (Correct answer)
- The price must be the lowest price available in the market
- The price must include a minimum 30-day warranty value
Correct answer: The advertised price must include all fees and charges except HST and licensing
OMVIC's all-in price advertising rule requires that every advertised price include all dealer fees, documentation charges, and administration fees — only HST and licensing are excluded.
Question 2: A dealer advertises a vehicle for $19,995 but then adds a $999 'documentation fee' at the time of sale. Under OMVIC's all-in advertising rule, this practice is:
- Acceptable if the fee is disclosed verbally during negotiations
- A violation — all fees except HST and licensing must be included in the advertised price (Correct answer)
- Acceptable if the fee is itemized separately on the bill of sale
- Acceptable if the dealer's website lists the fee in the fine print
Correct answer: A violation — all fees except HST and licensing must be included in the advertised price
Adding any fee beyond HST and licensing to the price after advertising it is a violation of OMVIC's all-in price advertising standard.
Question 3: Which of the following fees CAN legally be added to the advertised all-in price at time of sale?
- Administration fee
- Nitrogen tire fill charge
- Harmonized Sales Tax (HST) (Correct answer)
- Documentation/processing fee
Correct answer: Harmonized Sales Tax (HST)
HST is a government-regulated tax that must be collected at source and is the only major charge, along with actual licensing fees, that can be added to the all-in advertised price.
Question 4: A dealer's advertisement shows a vehicle at $24,500 and separately lists a $500 'freight and PDI' charge. Under OMVIC advertising standards, this is:
- Acceptable because freight and PDI are manufacturer charges
- A violation — freight and PDI must be included in the advertised all-in price (Correct answer)
- Acceptable if the ad mentions that the price excludes freight and PDI
- Acceptable only for new vehicles under $30,000
Correct answer: A violation — freight and PDI must be included in the advertised all-in price
Freight and PDI (Pre-Delivery Inspection) are dealer costs that must be included in the advertised all-in price; they cannot be listed as separate add-ons.
Question 5: Under OMVIC's Code of Ethics, what general principle underlies the all-in price advertising requirement?
- Dealers must price vehicles at fair market value
- Advertising must be clear, accurate, and not mislead consumers about the true cost (Correct answer)
- All dealers must use uniform provincial pricing
- Advertising is only regulated for vehicles over $10,000
Correct answer: Advertising must be clear, accurate, and not mislead consumers about the true cost
OMVIC's advertising standards are rooted in the Code of Ethics principle that all consumer-facing communications must be truthful, accurate, and not deceptive about costs.
Question 6: A dealership advertises the same vehicle at different prices in a newspaper ad versus on its website. Under OMVIC rules, this situation:
- Is acceptable since different media have different pricing norms
- Is a potential violation as advertising must be consistent and not mislead consumers (Correct answer)
- Is acceptable if the website has been updated more recently
- Is permitted if the newspaper ad is more than 7 days old
Correct answer: Is a potential violation as advertising must be consistent and not mislead consumers
Advertising inconsistencies that could mislead consumers about the actual price of a vehicle are a violation of OMVIC's advertising standards.
Question 7: A dealer includes the phrase 'plus applicable taxes' in an all-in price advertisement. Under OMVIC standards, which taxes are permissible to exclude from the advertised price?
- Only HST (Harmonized Sales Tax)
- HST and any applicable licensing fees (Correct answer)
- HST, licensing fees, and environmental levies
- All government fees and charges
Correct answer: HST and any applicable licensing fees
OMVIC's all-in price rule permits exclusion of HST and actual licensing/registration fees only; the phrase 'plus applicable taxes' is acceptable for these specific charges.
OMVIC OMVIC All-In Price Advertising and Standards 1
Under OMVIC's advertising standards, what does the 'all-in price' requirement mean for a vehicle advertisement?