OMVIC - Ontario Motor Vehicle Industry Council Advertising and Disclosure Rules Questions and Answers

Question 1

A dealership advertises a used car for $15,000.
When a customer arrives, they are informed that this price does not include a mandatory $599 administration fee and a $399 fee for nitrogen-filled tires that were pre-installed.
According to OMVIC's all-in pricing rules, which of the following is true?

Accepted Answer

The only charges that can be added to the advertised price are HST and licensing.

Answer

The administration fee is acceptable, but the fee for nitrogen tires must be included in the advertised price.

Answer

Both the administration fee and the nitrogen fee are optional and can be added if the customer agrees.

Answer

The dealership is compliant as long as they verbally disclose the extra fees before the contract is signed.

Question 2

A salesperson creates a social media post to advertise a vehicle available at their dealership. Which piece of information is mandatory to include in the ad to comply with OMVIC regulations?

Accepted Answer

The dealership's registered name and contact information.

Answer

The vehicle's stock number.

Answer

The total cost of borrowing if financing is offered.

Answer

The salesperson's personal OMVIC registration number.

Question 3

Which of the following vehicle histories requires mandatory disclosure in an advertisement, according to OMVIC guidelines?

Accepted Answer

The vehicle was previously used as a police or emergency services vehicle.

Answer

The vehicle was previously owned by a commercial fleet.

Answer

The vehicle had its brake pads replaced last year.

Answer

The vehicle was used for a daily commute of over 100 km.

Question 4

A dealership advertises a vehicle 'as-is'. According to the Motor Vehicle Dealers Act (MVDA), what specific disclosure must be included in the advertisement?

Accepted Answer

A specific statement that the vehicle is unfit, not e-tested, and may require substantial repairs at the purchaser's expense.

Answer

A statement that the vehicle comes with a limited 30-day powertrain warranty.

Answer

The estimated cost to bring the vehicle to safety-certified condition.

Answer

A list of all known defects with the vehicle.

Question 5

A dealer's advertisement includes an image of a premium, top-trim level model of a car with a price listed. However, the advertised price is for the base model, which lacks many of the features shown in the picture. This practice is a violation of which principle under the OMVIC Code of Ethics?

Accepted Answer

That all representations must be legal, decent, ethical, and truthful.

Answer

Financial responsibility.

Answer

Accountability.

Answer

Professionalism in all dealings.

Question 6

Under what circumstances can a dealer's advertised price lawfully exclude a specific fee?

Accepted Answer

When the advertisement is a joint ad from two or more dealers whose administration fees differ.

Answer

When the fee is for a government levy like the air conditioning tax.

Answer

When the fee is for freight, as this is set by the manufacturer.

Answer

When the advertisement is exclusively online and not in print.