OMVIC OMVIC All-In Price Advertising and Standards 4 — Questions and Answers
Question 1: A dealer advertises that a vehicle is 'certified pre-owned' but only performs a basic safety inspection. Under OMVIC standards, what is the issue?
- Nothing, as 'certified pre-owned' has no specific legal definition
- The advertisement is misleading if 'certified pre-owned' implies standards not actually met by the vehicle (Correct answer)
- It is acceptable as long as the dealer has a written policy defining the term
- OMVIC only regulates price advertising, not descriptive claims
Correct answer: The advertisement is misleading if 'certified pre-owned' implies standards not actually met by the vehicle
Using terms like 'certified pre-owned' in a way that implies greater inspection or quality standards than were actually applied is misleading advertising under OMVIC's Code of Ethics.
Question 2: Under OMVIC's all-in price rules, a 'dealer admin fee' that varies by customer is:
- Acceptable as long as it is disclosed before contract signing
- Prohibited — all fees must be uniform and included in the advertised all-in price (Correct answer)
- Acceptable if the maximum amount is posted in the showroom
- Only prohibited if it exceeds $500
Correct answer: Prohibited — all fees must be uniform and included in the advertised all-in price
Variable fees that differ by customer are inconsistent with the all-in price advertising standard, which requires a transparent, consistent price inclusive of all dealer charges.
Question 3: A dealer's advertisement uses the phrase 'from $XX,XXX' for a vehicle model. Under OMVIC standards, this is compliant only if:
- The stated price is the MSRP base price
- A vehicle can genuinely be purchased at that price at the dealer without additional mandatory fees (Correct answer)
- The dealership stocks at least three vehicles at the starting price
- The phrase is used for new vehicles only
Correct answer: A vehicle can genuinely be purchased at that price at the dealer without additional mandatory fees
Using 'from $XX,XXX' is only compliant if at least one purchasable vehicle is actually available at that all-in price without any mandatory additions.
Question 4: What is the purpose of requiring dealers to advertise on an all-in price basis in Ontario?
- To allow the government to accurately calculate sales tax revenues
- To enable consumers to comparison shop on a true cost basis and avoid surprise fees (Correct answer)
- To ensure dealers earn consistent profit margins across the industry
- To reduce the administrative burden on dealerships
Correct answer: To enable consumers to comparison shop on a true cost basis and avoid surprise fees
All-in price advertising enables consumers to accurately compare vehicle prices across dealers without being surprised by hidden fees at the time of purchase.
Question 5: A dealer in Ontario sells to an out-of-province buyer and claims OMVIC advertising rules do not apply. Is this correct?
- Yes, provincial regulations only protect Ontario residents
- No, OMVIC advertising standards apply to all registered Ontario dealers regardless of buyer location (Correct answer)
- Yes, federal advertising laws take precedence for interprovincial sales
- It depends on whether the sale is conducted online or in-person
Correct answer: No, OMVIC advertising standards apply to all registered Ontario dealers regardless of buyer location
OMVIC's advertising standards govern the conduct of Ontario-registered dealers; they apply to the dealer's practices regardless of where the buyer resides.
Question 6: A dealer's ad states: 'Buy any SUV this weekend at $29,900 — only 3 available!' Under OMVIC advertising rules, what must be true for this ad to be compliant?
- The $29,900 must be the MSRP for the cheapest available trim
- The dealer must actually have 3 SUVs available at the all-in price of $29,900 during that weekend (Correct answer)
- The ad must run for at least the full weekend regardless of stock level
- The $29,900 price must be lower than any other dealer's advertised price
Correct answer: The dealer must actually have 3 SUVs available at the all-in price of $29,900 during that weekend
Limited availability claims must be genuine; the dealer must have the advertised vehicles at the advertised all-in price available during the stated promotion period.
Question 7: Under OMVIC's advertising standards, what must a dealer do if an advertised price was listed in error?
- Honor the price for anyone who contacts them about the ad
- Correct the advertisement as quickly as possible and clearly communicate the error to consumers who inquired (Correct answer)
- Simply remove the ad without notifying any consumers who enquired
- Add a disclaimer to all future ads about potential pricing errors
Correct answer: Correct the advertisement as quickly as possible and clearly communicate the error to consumers who inquired
When advertising errors occur, dealers must promptly correct the advertisement and communicate the correction to consumers who inquired based on the incorrect price.
OMVIC OMVIC All-In Price Advertising and Standards 4
A dealer advertises that a vehicle is 'certified pre-owned' but only performs a basic safety inspection.
Under OMVIC standards, what is the issue?