OMVIC Advertising and Disclosure Rules 2 — Questions and Answers
Question 1: Under Ontario's all-in pricing rules, which of the following fees must be included in a dealer's advertised vehicle price?
- License plate fee, which varies by buyer
- Dealer administration fee (Correct answer)
- Extended warranty chosen by the buyer
- Optional rustproofing add-on
Correct answer: Dealer administration fee
Mandatory fixed fees such as dealer administration fees must be included in the all-in advertised price; fees that vary by the individual buyer (like license plates) may be excluded.
Question 2: A dealer advertises a vehicle at $22,999 but charges a $599 'documentation fee' at the point of sale that was not reflected in the ad. This practice:
- Is acceptable if disclosed verbally before signing
- Is only a violation if the fee exceeds $1,000
- Violates OMVIC's all-in pricing advertising rules (Correct answer)
- Is permitted as long as it is itemized on the contract
Correct answer: Violates OMVIC's all-in pricing advertising rules
OMVIC's all-in pricing rules require that all mandatory fees be included in the advertised price; adding hidden fees at point of sale is a violation.
Question 3: When a dealership advertises a 'sale price' as a reduction from an original price, OMVIC requires that the original price:
- Be at least 20% higher than the sale price
- Represent a genuine price at which the vehicle was actually offered (Correct answer)
- Be the manufacturer's MSRP regardless of dealer markup
- Be disclosed only in fine print
Correct answer: Represent a genuine price at which the vehicle was actually offered
Advertised discounts must be calculated from a genuine offering price; fabricating an inflated original price to create the appearance of a larger discount is misleading under OMVIC rules.
Question 4: A dealer's advertisement features a photo of a fully loaded trim level but the advertised price applies only to the base trim. Under OMVIC standards, this is:
- Acceptable with a small disclaimer
- A violation of misleading advertising rules (Correct answer)
- Permitted if both trims share the same model name
- Standard industry practice
Correct answer: A violation of misleading advertising rules
Using images that misrepresent the vehicle being offered at the advertised price constitutes misleading advertising under OMVIC's Code of Ethics.
Question 5: Which of the following charges is typically exempt from inclusion in Ontario's all-in advertised vehicle price?
- Freight and PDI charges
- Air conditioning tax
- Dealer admin fee
- License and registration fees that vary by the individual buyer (Correct answer)
Correct answer: License and registration fees that vary by the individual buyer
Fees that vary based on individual buyer circumstances, such as license and registration, are generally exempt from the all-in advertised price requirement.
Question 6: Under OMVIC advertising rules, if an ad states 'prices starting from $189/month,' what additional information is required for the ad to be compliant?
- Only the name of the lending institution
- The vehicle's MSRP
- Key financing terms including down payment, interest rate, and term (Correct answer)
- The salesperson's name
Correct answer: Key financing terms including down payment, interest rate, and term
When advertising periodic payment amounts, OMVIC requires material financing terms—such as down payment, interest rate, and loan term—to be clearly disclosed.
Question 7: A dealer runs an ad claiming their prices are 'the lowest in Ontario.' Under OMVIC's Code of Ethics, this claim must be:
- Filed with OMVIC before publication
- Based on accurate, verifiable comparative data (Correct answer)
- Avoided entirely as it is always considered misleading
- Approved by the Ontario Automobile Dealers Association
Correct answer: Based on accurate, verifiable comparative data
Superlative claims like 'lowest prices' are only permissible if the dealer can substantiate them with accurate and verifiable comparative information.
OMVIC Advertising and Disclosure Rules 2
Under Ontario's all-in pricing rules, which of the following fees must be included in a dealer's advertised vehicle price?