Advertising and Disclosure Rules Flashcards
7 cards from real OMVIC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Advertising and Disclosure Rules flashcards as text
When a dealer advertises '0% financing for 84 months' but the vehicle price under that promotion differs from the cash purchase price, OMVIC requires the dealer to:
Answer: Disclose that the financed price may differ from the cash price
When promotional financing affects the vehicle price, OMVIC requires this to be clearly disclosed so consumers can compare the true cost of financing versus paying cash.
A dealer advertises a lease offer showing only the monthly payment amount. Under OMVIC's advertising standards, this ad is:
Answer: Non-compliant without disclosure of key lease terms such as down payment, term, and total obligation
Lease advertising must include material terms such as the required down payment, lease term, and total lease obligation so consumers can make informed comparisons.
A dealer's advertisement claims 'Guaranteed Credit Approval—Everyone Qualifies!' Under OMVIC standards, this claim:
Answer: Must be substantiated; if it is not literally true, it constitutes misleading advertising
Absolute claims such as 'guaranteed approval' must be literally true and substantiable; making such claims when exceptions exist is misleading advertising under OMVIC's Code of Ethics.
Under OMVIC regulations, which party bears primary responsibility for ensuring advertising content complies with OMVIC rules?
Answer: The registered dealer or dealership that authorized and placed the ad
The registered dealer is ultimately responsible for all advertising placed on their behalf, regardless of whether a third-party agency created the content.
A dealer's salesperson verbally tells a prospect that a used vehicle 'has never been in an accident' without verifying this fact, and the claim turns out to be false. Under OMVIC rules:
Answer: The dealer is responsible for misrepresentations made by their registered salespersons
Dealers are responsible for the conduct and representations of their registered salespersons; a misrepresentation by staff is a violation attributable to the dealership.
A dealer advertises a vehicle as 'certified pre-owned' but it has not been inspected or certified under any recognized certification program. Under OMVIC advertising rules, this is:
Answer: Misleading advertising because the claim implies a standard of inspection that was not performed
Using 'certified pre-owned' without meeting the standards implied by that term misleads consumers into believing the vehicle underwent a rigorous certification process when it did not.
Under OMVIC's Code of Ethics, which of the following best describes a dealer's obligation when they become aware that a previous advertisement contained inaccurate information?
Answer: The dealer should correct or retract the inaccurate advertisement promptly
OMVIC's Code of Ethics requires dealers to act with honesty and integrity, which includes correcting known advertising errors promptly to avoid ongoing consumer deception.