OMVIC OMVIC Advertising and Disclosure Rules 3 — Questions and Answers
Question 1: Under OMVIC regulations, if a dealer advertises a vehicle as 'certified,' what must be disclosed?
- The certification program name and what it covers (Correct answer)
- Only the vehicle's mileage
- The dealer's OMVIC registration number only
- The original purchase price of the vehicle
Correct answer: The certification program name and what it covers
Dealers must identify the certification program name and disclose what the certification actually covers so consumers can make informed decisions.
Question 2: A dealer runs an ad stating '0% financing for 36 months.' Under OMVIC rules, what additional information is typically required?
- Any conditions, qualifications, or restrictions on the financing offer (Correct answer)
- The dealer's physical address only
- The salesperson's name who handles financing
- The trade-in value formula used
Correct answer: Any conditions, qualifications, or restrictions on the financing offer
Financing offers must include all material conditions, such as required credit approval, down payment, or vehicle eligibility, so the offer is not misleading.
Question 3: When advertising a 'no accident history' vehicle, which statement best reflects OMVIC's disclosure expectations?
- The claim must be based on a verifiable source such as a vehicle history report (Correct answer)
- The dealer may state it based solely on visual inspection
- No disclosure is needed if the dealer believes the vehicle is clean
- The claim is acceptable as long as it appears only in print ads
Correct answer: The claim must be based on a verifiable source such as a vehicle history report
Claims about accident history must be supportable by a reliable third-party source like CARFAX, as unsubstantiated claims can be misleading under OMVIC's Code of Ethics.
Question 4: Which of the following practices violates OMVIC's advertising rules regarding vehicle pricing?
- Advertising a price that excludes mandatory fees not disclosed in the ad (Correct answer)
- Listing the MSRP and sale price side by side
- Displaying HST as a separate line item
- Posting the total cost of ownership estimate
Correct answer: Advertising a price that excludes mandatory fees not disclosed in the ad
OMVIC requires that advertised prices reflect all mandatory charges, or those charges must be clearly disclosed, to prevent misleading consumers about the true cost.
Question 5: A dealership places a banner ad showing a photo of a red SUV but the advertised price applies only to a base trim sedan. This is an example of:
- Misleading advertising under OMVIC regulations (Correct answer)
- Acceptable comparative advertising
- A permissible stock-photo disclaimer practice
- Competitive pricing disclosure
Correct answer: Misleading advertising under OMVIC regulations
Pairing a higher-end vehicle image with a price for a different, lower-trim model is misleading because it creates a false impression in the consumer's mind.
Question 6: Under OMVIC's framework, a 'bait and switch' advertising scheme involves:
- Advertising a vehicle at an attractive price with no genuine intention to sell it at that price (Correct answer)
- Offering a rebate and a low financing rate simultaneously
- Displaying two prices for the same vehicle and letting the buyer choose
- Listing optional features as standard equipment in promotional material
Correct answer: Advertising a vehicle at an attractive price with no genuine intention to sell it at that price
Bait and switch is advertising a deal the dealer cannot or will not honor, then steering consumers to more expensive alternatives, which is prohibited by OMVIC.
Question 7: When must a dealer disclose that a used vehicle was previously used as a rental car?
- Before the consumer signs a purchase agreement (Correct answer)
- Only if the consumer specifically asks
- After financing is approved
- Only if the vehicle has more than 50,000 km
Correct answer: Before the consumer signs a purchase agreement
Prior use as a rental vehicle is a material fact under OMVIC's disclosure rules and must be proactively revealed before the consumer commits to purchase.
OMVIC OMVIC Advertising and Disclosure Rules 3
Under OMVIC regulations, if a dealer advertises a vehicle as 'certified,' what must be disclosed?