Advertising and Disclosure Rules Flashcards

A dealer's online listing reads: '$24,995 + $799 admin fee + applicable taxes.' Under OMVIC's advertising standards, which statement is most accurate?

Answer: The ad violates OMVIC standards because the admin fee must be incorporated into the advertised price

OMVIC's all-in pricing rule requires that the advertised price include all dealer-imposed charges, including documentation and administration fees. Only government-mandated charges — HST and vehicle licensing fees — may be listed separately, provided they are clearly disclosed. An admin fee is a dealer-imposed cost and must be baked into the headline price.

A salesperson at a registered dealership posts a private-looking ad on an online marketplace using only their personal first name and no dealership branding, intending to generate leads for the dealership's inventory. Under OMVIC rules, this practice is:

Answer: Prohibited, because all dealer advertising must identify the registered dealership, regardless of platform or format

OMVIC prohibits dealers and their salespersons from advertising inventory in a way that conceals the dealer's registered status. All advertising — including informal marketplace listings — must clearly identify the registered dealer. Posing as a private seller to generate leads or avoid consumer protections is a violation of OMVIC's Code of Ethics and the MVDA.

A dealer advertises a lease: '$399/month for 48 months.' Under OMVIC's advertising requirements for leases, which additional disclosure is most critically missing from this ad?

Answer: The total lease obligation over the full term

When a dealer advertises a lease payment (a 'trigger term'), OMVIC regulations require that the total obligation — the full amount payable over the lease term — be disclosed in the same advertisement. This prevents consumers from being drawn in by a low monthly figure without understanding the total financial commitment. While mileage and residual value are important, the total obligation disclosure is the mandatory companion to any advertised payment.

A consumer visits a dealership after seeing an online ad for a specific vehicle at $19,500 all-in. The salesperson informs them the price was a website error and the correct price is $21,200. The consumer has not paid a deposit. Under OMVIC standards, the dealer's obligation is to:

Answer: Honor the advertised price, as OMVIC's standards hold dealers responsible for the accuracy of their own advertising

OMVIC's advertising standards require that dealers honor prices as advertised. Dealers are responsible for the accuracy of all their advertising — including digital listings — and cannot use internal errors as a post-hoc justification for raising prices once a consumer acts on the ad. Failure to honor an advertised price is a violation subject to OMVIC discipline, regardless of whether a deposit was taken.

A dealer acquires a vehicle that was previously registered in the United States, reconditions it, and lists it for sale without mentioning its U.S. history. Under OMVIC disclosure rules, the dealer is required to:

Answer: Disclose the U.S. origin in writing, within the purchase agreement, prior to the consumer signing

OMVIC requires dealers to disclose in writing — within the purchase agreement — that a vehicle was previously registered outside of Canada. U.S.-origin vehicles may have different safety standards, warranty implications, or insurance complications, making this a material fact. The disclosure must be proactive and documented, not triggered only by consumer inquiry.

A dealer's radio ad claims: 'We have the lowest prices on pre-owned SUVs in the GTA — guaranteed!' Under OMVIC's advertising standards, this claim is:

Answer: Prohibited as an absolute superlative claim that cannot be substantiated and is therefore misleading advertising

OMVIC's standards prohibit advertising claims that are false, misleading, or deceptive. An absolute superlative such as 'lowest prices in the GTA — guaranteed' is an unverifiable claim that implies a price comparison the dealer cannot realistically substantiate. Unlike subjective puffery ('great selection'), this is a factual-sounding assertion about price supremacy that could mislead consumers — making it a violation regardless of disclaimers.