OMVIC OMVIC Curbsiding and Illegal Sales Practices 1 — Questions and Answers
Question 1: Under the Ontario Motor Vehicle Dealers Act 2002, what is 'curbsiding'?
- A registered dealer selling vehicles from a temporary outdoor lot
- An unregistered individual selling motor vehicles for profit on a repeated basis (Correct answer)
- A licensed dealer transferring vehicles between branch locations
- A consumer reselling a single personal-use vehicle
Correct answer: An unregistered individual selling motor vehicles for profit on a repeated basis
Curbsiding occurs when an unregistered person repeatedly sells vehicles for profit, which is illegal under the MVDA 2002 without OMVIC registration.
Question 2: Which of the following is the most reliable indicator that a seller may be a curbsider?
- The seller has a detailed service history for the vehicle
- The vehicle is listed at market value on an online platform
- The seller lists multiple different vehicles for sale simultaneously from the same phone number (Correct answer)
- The seller insists on a safety standards certificate before sale
Correct answer: The seller lists multiple different vehicles for sale simultaneously from the same phone number
Multiple simultaneous listings from the same contact strongly suggests a pattern of trade, a key sign of curbsiding.
Question 3: What is the maximum fine an individual can face for curbsiding under the MVDA 2002?
- $5,000
- $25,000
- $50,000 (Correct answer)
- $100,000
Correct answer: $50,000
Under the MVDA 2002, an individual convicted of acting as an unregistered dealer can face fines up to $50,000.
Question 4: Why do consumers face greater risk when buying from a curbsider compared to a registered dealer?
- Curbsiders charge higher prices than registered dealers
- Curbsiders are not subject to OMVIC's Code of Ethics and offer no consumer protections under the MVDA (Correct answer)
- Curbsiders only sell vehicles with expired safety certificates
- Registered dealers are required to provide extended warranties while curbsiders are not
Correct answer: Curbsiders are not subject to OMVIC's Code of Ethics and offer no consumer protections under the MVDA
Consumers lose all MVDA protections — including the right to a written contract, disclosure, and OMVIC dispute resolution — when purchasing from an unregistered seller.
Question 5: Under the MVDA 2002, which party is legally required to be registered with OMVIC in order to sell motor vehicles in Ontario?
- Any person who sells more than five vehicles per calendar year
- Any person who sells motor vehicles in the course of trade as a business (Correct answer)
- Only corporations or partnerships selling vehicles
- Only franchised new-vehicle dealerships
Correct answer: Any person who sells motor vehicles in the course of trade as a business
Anyone who trades in motor vehicles as a business — regardless of volume or structure — must be registered under the MVDA 2002.
Question 6: A curbsider commonly disguises their activity as a private sale. Which tactic is most commonly used?
- Listing the vehicle on OMVIC's official website
- Claiming each vehicle is a personal vehicle no longer needed (Correct answer)
- Providing OMVIC registration documents to the buyer
- Offering a dealer-level warranty on each vehicle
Correct answer: Claiming each vehicle is a personal vehicle no longer needed
Curbsiders frequently claim vehicles are personal-use to avoid appearing as a business, thereby evading MVDA registration requirements.
Question 7: Which action should a consumer take if they suspect they have purchased a vehicle from a curbsider?
- Contact the Ministry of Transportation only
- File a complaint with the Better Business Bureau
- Report the activity to OMVIC for investigation (Correct answer)
- Notify their insurance company and take no further action
Correct answer: Report the activity to OMVIC for investigation
OMVIC is the regulatory body empowered to investigate unregistered trade, and consumers should file complaints directly with OMVIC.
OMVIC OMVIC Curbsiding and Illegal Sales Practices 1
Under the Ontario Motor Vehicle Dealers Act 2002, what is 'curbsiding'?