OMVIC OMVIC All-In Price Advertising and Standards 3 — Questions and Answers
Question 1: Under OMVIC standards, which statement about 'bait and switch' advertising is correct?
- It is legal if the dealer offers a comparable vehicle at a similar price
- It is a prohibited practice where a dealer advertises a vehicle with no intent to sell it at that price (Correct answer)
- It is only prohibited for vehicles under $20,000
- It is legal if the advertised vehicle was recently sold
Correct answer: It is a prohibited practice where a dealer advertises a vehicle with no intent to sell it at that price
Bait and switch advertising — advertising a vehicle at an attractive price with no intent or ability to sell it at that price — is explicitly prohibited under OMVIC's advertising standards.
Question 2: A dealer runs a 'limited time' sale advertisement. Under OMVIC rules, what must be true about this advertisement?
- The sale price must be lower than any competitor's price
- The sale period and any conditions must be clearly stated and the advertised price must be genuinely available (Correct answer)
- The ad must be approved by OMVIC before publication
- Limited time sales are only permitted twice per calendar year
Correct answer: The sale period and any conditions must be clearly stated and the advertised price must be genuinely available
Limited time sale advertisements must clearly state the sale period and any conditions, and the advertised price must actually be available to consumers during that period.
Question 3: A dealer's all-in price advertisement for a used vehicle does not mention that a safety certificate is not included. Under OMVIC standards:
- This is acceptable as safety certificates are optional for used vehicles
- The dealer should clearly disclose whether the vehicle is certified or sold uncertified (Correct answer)
- This is acceptable if the buyer can see the vehicle is uncertified from inspection
- Safety certificate status is irrelevant to advertising standards
Correct answer: The dealer should clearly disclose whether the vehicle is certified or sold uncertified
Advertising must not be misleading; whether a used vehicle is sold certified or uncertified is a material fact that should be clearly stated in the advertisement.
Question 4: Under OMVIC's advertising requirements, which statement about internet (online) advertising is correct?
- Online ads are exempt from OMVIC's all-in price requirement
- The same all-in price advertising standards apply to all forms of dealer advertising including online (Correct answer)
- Online ads only need to comply with federal advertising rules, not OMVIC's
- Social media posts are exempt from OMVIC's advertising standards
Correct answer: The same all-in price advertising standards apply to all forms of dealer advertising including online
OMVIC's advertising standards apply to all dealer advertising regardless of the medium — print, radio, television, internet, and social media all fall under the same rules.
Question 5: A dealer advertises a vehicle at an all-in price of $31,000 but the vehicle is already sold when the buyer arrives. What must the dealer do to avoid an OMVIC violation?
- Show the buyer a more expensive alternative immediately
- Remove the advertisement promptly once the vehicle is sold and not use unavailable vehicles to attract customers (Correct answer)
- Offer a rain check for the same price on a future vehicle
- Reduce the price of a similar available vehicle to match the advertised amount
Correct answer: Remove the advertisement promptly once the vehicle is sold and not use unavailable vehicles to attract customers
Continuing to advertise sold vehicles to attract customers is a deceptive practice; dealers must remove ads for sold inventory promptly.
Question 6: Which organization has the primary mandate to establish and enforce advertising standards for motor vehicle dealers in Ontario?
- The Advertising Standards Canada (ASC)
- OMVIC (Ontario Motor Vehicle Industry Council) (Correct answer)
- The Ministry of Transportation of Ontario
- The Competition Bureau of Canada
Correct answer: OMVIC (Ontario Motor Vehicle Industry Council)
OMVIC is the delegated authority under the MVDA to regulate and enforce advertising standards for Ontario's registered motor vehicle dealers.
Question 7: A dealer adds a charge for mandatory winter tires that are installed on every vehicle sold at their lot. Under the all-in price rule, this charge:
- Can be listed separately since tires are a vehicle modification
- Must be included in the all-in advertised price if they are mandatory on every vehicle (Correct answer)
- Can be excluded if the tires have a separate manufacturer warranty
- Is exempt because winter tires improve safety
Correct answer: Must be included in the all-in advertised price if they are mandatory on every vehicle
Any mandatory charge that every buyer must pay — including mandatory tire packages — must be included in the all-in advertised price.
OMVIC OMVIC All-In Price Advertising and Standards 3
Under OMVIC standards, which statement about 'bait and switch' advertising is correct?