OMVIC Advertising and Disclosure Rules Flashcards

A dealership advertises a used vehicle at $21,995 with the tagline 'Drive Away Today — Nothing More to Pay!' At delivery, the dealer charges a $349 'certification administration fee' processed through a third-party inspection service the dealer has a standing arrangement with. Is this advertisement compliant under OMVIC's all-in pricing requirements?

Answer: Non-compliant, because any fee the dealer arranges or requires must be included in the advertised price

Under OMVIC advertising rules, the advertised price must include ALL fees and charges the consumer must pay — except HST and licence/plate fees. If the dealer requires the consumer to pay a certification administration fee, even one processed through a third party the dealer has arranged, it must be included in the advertised price. The fact that the fee passes through a third party does not exempt it from the all-in pricing requirement.

A dealer sells a vehicle 'as-is' and explicitly states this in both the purchase agreement and all advertising. Post-sale, the buyer discovers the vehicle has significant frame damage from a prior collision that the dealer's own technician had noted in an internal pre-acquisition inspection report. Under OMVIC's disclosure framework, which statement is most accurate?

Answer: The dealer violated disclosure requirements, because 'as-is' language does not extinguish the duty to disclose known material facts

'As-is' clauses do not override OMVIC's statutory obligation to disclose known material facts. A material fact is any information that a reasonable consumer would consider important in deciding whether to buy and at what price. Frame damage documented in the dealer's own records is unambiguously a known material fact, and the dealer's duty to disclose it persists regardless of any 'as-is' disclaimer.

A dealer's advertisement offers '0% APR financing for 48 months' on a specific SUV model. The same manufacturer is also providing a $2,500 cash rebate on that vehicle — but consumers cannot receive both the 0% financing rate AND the cash rebate simultaneously; the 0% rate is only available to customers who forgo the rebate. What does OMVIC require the advertising to disclose?

Answer: The advertisement must clearly disclose that the 0% rate is conditional on forgoing the cash rebate, and the rebate amount must be stated

OMVIC requires that all material conditions attached to an advertised offer be clearly disclosed. When a financing rate is only available in lieu of a cash alternative, this is a material condition — the consumer is effectively paying for the low rate by surrendering the rebate. Failing to disclose this creates a misleading impression that 0% financing is a straightforward benefit. Both the conditionality and the rebate value must be disclosed so consumers can make an informed comparison.

A registered salesperson at a dealership posts vehicle listings on their personal Instagram account using their own name and photo, with no mention of the dealership's name or OMVIC registration number. They include only their personal cell number for inquiries. A potential buyer contacts them and eventually purchases a vehicle. Which of the following reflects OMVIC's position on this advertising?

Answer: Non-compliant, because all advertising by a registered person must clearly identify the dealer they are registered with, regardless of the platform used

OMVIC advertising obligations apply to all advertising by registered persons — there is no exemption for personal social media platforms or accounts. A salesperson cannot advertise vehicles for sale without clearly identifying themselves and the registered dealership on whose behalf they are acting. Platform, account type, and follower count are irrelevant to this obligation. Using personal channels to circumvent dealer identification requirements is a direct violation of OMVIC's advertising rules.

A dealer acquires a current-model-year vehicle that was used exclusively by the general manager as their personal commuter vehicle for eight months and 14,000 km, but was never formally registered as a demo or titled to any customer. The dealer now wants to advertise it as a 'new' vehicle at a slight discount. Under OMVIC regulations, which of the following is correct?

Answer: The vehicle must be advertised as used because prior operation as a demonstrator or company vehicle disqualifies it from 'new' status regardless of registration history

Under OMVIC's framework, a vehicle that has been used as a demonstrator or operated by dealership personnel — even if never registered to a retail customer — cannot be advertised or sold as 'new.' The vehicle's operational history, not just its title or registration record, determines its classification. The dealer must disclose its prior use and apply the full used-vehicle disclosure requirements, including the Used Vehicle Information Package. 'Executive demo' language does not substitute for proper used-vehicle classification.

A dealer's automated inventory management system pushes live listings to a major third-party automotive marketplace. Due to a system sync error, a vehicle sold three days ago remains listed at its original advertised price. A consumer drives two hours to the dealership specifically to purchase that vehicle. The dealer discovers the listing error only when the customer arrives. What is the dealer's obligation under OMVIC?

Answer: The dealer is responsible for ensuring all listings accurately reflect available inventory; advertising a sold vehicle is non-compliant regardless of how the listing was published

OMVIC holds dealers responsible for the accuracy of all their advertising, including listings published through automated feeds on third-party platforms. Advertising a vehicle that is not actually available for purchase is a violation regardless of the technical mechanism that published the ad. The dealer cannot transfer responsibility to the platform or the software. Dealers must have processes in place to promptly remove listings for sold vehicles across all channels where they advertise. While OMVIC does not require dealers to honor prices on sold vehicles, the non-compliant advertisement itself is the violation.