OMVIC Advertising and Disclosure Rules Flashcards
6 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 6 OMVIC Advertising and Disclosure Rules flashcards as text
OMVIC's advertising standards prohibit 'bait and switch' tactics. Which scenario is an example of bait and switch?
Answer: Advertising a vehicle at a low price when little or no stock is available at that price, then steering consumers toward higher-priced vehicles
Bait and switch involves advertising a product at an attractive price without genuine intent or ability to sell it at that price, then redirecting consumers to more expensive alternatives. This is explicitly prohibited by OMVIC's advertising standards.
When a dealer advertises a vehicle as 'as-is', what disclosure obligation does OMVIC impose?
Answer: The dealer must still disclose any known material defects and cannot use 'as-is' to hide known problems
Even when selling a vehicle 'as-is', a dealer registered under OMVIC must disclose all known material defects. 'As-is' cannot be used to conceal known problems from the buyer — it only means the dealer is not providing an additional warranty beyond what is legally required.
Under Ontario's Motor Vehicle Dealers Act, a dealer who fails to include required disclosure information in a vehicle advertisement may face:
Answer: Disciplinary action by OMVIC including conditions, suspension, or revocation of registration
OMVIC has broad disciplinary powers under the MVDA. Failing to comply with advertising standards can result in conditions on registration, suspension, or revocation, as well as administrative penalties. OMVIC can also refer matters to the courts.
A dealer advertises that a used pickup truck has been 'fully inspected and road-tested by our certified technicians.' What obligation does this create?
Answer: The dealer must have actually performed the inspection and be able to substantiate the claim
Any claim a dealer makes about a vehicle in advertising must be truthful and substantiated. Claiming an inspection was performed means it was actually performed. If the inspection was not done or was cursory, the claim is a misrepresentation.
Which of the following is a required element when a dealer advertises a specific financed payment (e.g., '$299/month')?
Answer: The full financing terms including interest rate, loan term, down payment required, and total cost of borrowing
When a financed payment is advertised, OMVIC requires that all material financing terms be disclosed so consumers can assess the true cost, including the interest rate (APR), term, required down payment, and total cost of borrowing.
A dealer posts on social media that a particular used SUV has 'zero accidents — guaranteed!' A consumer later discovers the vehicle had an unreported collision repair. Which principle does this violate?
Answer: The prohibition on false and misleading representations under OMVIC's advertising standards and the Consumer Protection Act
Making a definitive 'guaranteed' claim about vehicle history when the dealer has not verified it through adequate inspection violates the prohibition on false and misleading representations. OMVIC advertising standards and the Consumer Protection Act both apply to social media.