OMVIC Advertising and Disclosure Rules Flashcards

A dealership runs a social media promotion where a salesperson posts on their personal Instagram: 'Amazing deal on a 2023 SUV — DM me!' The post includes the vehicle price but omits the dealer's registered name and OMVIC registration number. Under OMVIC advertising rules, who bears primary regulatory responsibility for this non-compliant advertisement?

Answer: The dealership (registered motor vehicle dealer), because all advertising by its registrants is attributable to the dealer

Under OMVIC's advertising standards, any advertisement placed by a salesperson or other registrant on behalf of — or in connection with — a dealership is treated as the dealer's advertisement. The registered dealer is ultimately responsible for ensuring all advertising, including personal social media posts used to solicit business, complies with OMVIC rules. The dealer's registered name must appear in all advertising.

A dealer advertises a certified pre-owned vehicle at an 'all-in' price of $22,999. When a customer arrives, the dealer adds a $499 'documentation fee' and a $299 'window tint protection' charge at the point of sale, stating these are mandatory. Under OMVIC's Price Advertising Rule, which statement is most accurate?

Answer: Both charges violate the all-in price rule because any mandatory fee must be included in the advertised price

Ontario's all-in price advertising rule requires that the advertised price represent the total price a consumer pays, excluding only HST and licensing/registration fees. Any charge that is mandatory — regardless of what it is called — must be included in the advertised price. Both a mandatory documentation fee and a mandatory dealer-installed product fee are prohibited add-ons when not reflected in the advertised price.

A dealer advertises a vehicle with a financing offer: 'Own it for $299/month!' In a smaller font, the ad states '84-month term.' The ad does not disclose the Annual Percentage Rate (APR), the total cost of borrowing, or the required down payment of $5,000. Under OMVIC and the Cost of Borrowing regulations, which element is the MOST critical missing disclosure that triggers full financing disclosure requirements?

Answer: The advertisement of a specific payment amount, which triggers mandatory disclosure of APR, term, total cost of borrowing, and down payment

Under OMVIC advertising standards (aligned with Ontario's Consumer Protection Act and Cost of Borrowing regulations), advertising a specific financing payment amount is a 'trigger term.' Once a specific monthly payment is stated, the advertisement must also disclose the APR, the total number of payments, the total cost of borrowing, and any required down payment. Simply stating a payment amount without these accompanying disclosures is non-compliant.

A dealership sells a vehicle that was previously used as a service loaner for eight months and accumulated 14,000 km. The dealer lists it in online inventory as a 'new' vehicle at a new vehicle price, without disclosing its prior use. The vehicle still has its full factory warranty intact and was never titled to a retail customer. Under OMVIC disclosure rules, this practice is:

Answer: A violation, because a vehicle used as a service loaner must be disclosed and designated as a 'demonstrator' or 'previously unregistered used vehicle,' not sold as new

OMVIC rules require that any vehicle used by a dealership as a demonstrator, loaner, or service vehicle — regardless of whether it was titled — must be disclosed as such. It cannot be advertised or sold as 'new.' Ontario's Motor Vehicle Dealers Act requires dealers to disclose material facts about a vehicle's history, and prior use as a service loaner is a material fact. The intact warranty or mileage threshold does not override this disclosure obligation.

A dealership advertises a specific used vehicle at $18,500 with a photo and VIN. Before any customer inquires, the vehicle sells. Three days later, the dealer continues running the same ad without updating it, resulting in two customers making the drive to the dealership specifically for that vehicle. Under OMVIC's bait advertising provisions, which statement is correct?

Answer: A violation likely occurred, because dealers must promptly remove or update advertising for vehicles that are no longer available for sale

OMVIC's advertising standards prohibit bait advertising, which includes continuing to advertise a specific vehicle that is no longer available for sale. Intent is not a required element — the effect on consumers is what matters. Dealers have an obligation to promptly update or remove advertisements when a vehicle sells. Leaving an ad live for three days after a sale, causing consumers to make the trip based on that ad, constitutes a breach of the fair advertising standard even without deliberate intent.

An OMVIC-registered dealer in Ontario advertises on a nationally-focused website, targeting buyers across Canada. The ad meets all federal advertising standards but omits the dealer's OMVIC registration number and does not include the all-in price as required by Ontario rules. The dealer argues that since the platform is national, Ontario-specific rules do not apply. Under OMVIC's jurisdiction, this argument is:

Answer: Invalid, because any advertisement by an Ontario-registered dealer that could reach Ontario consumers must comply with OMVIC advertising standards regardless of the platform's geographic scope

OMVIC's advertising standards apply to all Ontario-registered dealers regardless of the medium or platform used. The key factor is not where the platform is based or its intended geographic audience — it is that the dealer is registered in Ontario and the advertisement can reach Ontario consumers. A national platform does not exempt an Ontario-registered dealer from OMVIC's disclosure and pricing requirements. The dealer's registration number and all-in pricing must appear in all advertising.