OMVIC OMVIC Advertising and Disclosure Rules 4 — Questions and Answers
Question 1: Under OMVIC rules, what must a dealer do if an advertised vehicle sells before the ad campaign ends?
- Remove or update the ad promptly to avoid misleading additional consumers (Correct answer)
- Continue the ad to maintain brand visibility
- Replace the vehicle with a similar model without changing the ad
- Wait until the ad contract expires before making changes
Correct answer: Remove or update the ad promptly to avoid misleading additional consumers
Advertising a vehicle that is no longer available is misleading; OMVIC expects dealers to pull or correct ads as soon as the advertised unit is sold.
Question 2: A dealer advertises 'Wholesale Prices!' in a consumer-facing ad. Under OMVIC guidelines, this type of claim is:
- Potentially misleading if the prices are not actually at wholesale level (Correct answer)
- Always acceptable as a marketing expression
- Required to be paired with the dealer cost invoice
- Permitted only for fleet vehicles
Correct answer: Potentially misleading if the prices are not actually at wholesale level
Superlative or absolute claims like 'wholesale prices' must be accurate and supportable, otherwise they mislead consumers about the true nature of the pricing.
Question 3: Which statement about online vehicle advertisements and OMVIC compliance is correct?
- Online ads are subject to the same OMVIC advertising rules as print or broadcast ads (Correct answer)
- Online listings are exempt from OMVIC disclosure requirements
- Only ads on a dealer's own website must comply with OMVIC rules
- Social media posts promoting vehicles are not considered advertising under OMVIC
Correct answer: Online ads are subject to the same OMVIC advertising rules as print or broadcast ads
OMVIC's advertising standards apply regardless of the medium — online platforms, social media, and third-party listing sites are all covered.
Question 4: A dealer advertises a vehicle at '$299/month' without disclosing the term, down payment, or total cost. OMVIC would consider this:
- Misleading because material financing details are omitted (Correct answer)
- Acceptable as a teaser rate to generate leads
- Compliant if the dealer explains terms when the customer calls
- Permissible under short-form advertising exemptions
Correct answer: Misleading because material financing details are omitted
Payment-based advertising must include key terms such as lease or loan period, required down payment, and total obligation so consumers can assess the real cost.
Question 5: Under OMVIC, when advertising a manufacturer rebate, the dealer must:
- Clearly state the rebate conditions and whether it is applied to the purchase price or financing (Correct answer)
- Include the rebate only in fine print at the bottom of the ad
- Advertise the full price and mention the rebate verbally at the dealership
- Never combine a rebate with a reduced selling price in the same ad
Correct answer: Clearly state the rebate conditions and whether it is applied to the purchase price or financing
Rebate advertising must transparently show how the rebate is applied and any eligibility requirements so consumers understand the true deal.
Question 6: A car dealer uses the word 'Free' in an advertisement (e.g., 'Free winter tires with purchase'). OMVIC's stance on this is that:
- The cost of the 'free' item must not be hidden in an inflated vehicle price (Correct answer)
- The word 'free' is never permitted in vehicle advertising
- Dealers may use 'free' only for accessories under $500 in value
- Free offers must be approved by OMVIC before publishing
Correct answer: The cost of the 'free' item must not be hidden in an inflated vehicle price
Bundling the cost of a 'free' item into an elevated vehicle price makes the offer misleading; true free items cannot involve an offsetting price increase.
Question 7: Which of the following is a required disclosure when advertising a vehicle 'as-is' to a private consumer under OMVIC rules?
- The consumer must clearly understand they are waiving statutory warranty protections (Correct answer)
- As-is sales require no special disclosures to consumers
- The vehicle must be priced below book value to qualify as as-is
- As-is can only apply to vehicles over 10 years old
Correct answer: The consumer must clearly understand they are waiving statutory warranty protections
Dealers must ensure consumers understand what 'as-is' means legally, particularly the waiver of implied warranty protections under Ontario consumer protection law.
OMVIC OMVIC Advertising and Disclosure Rules 4
Under OMVIC rules, what must a dealer do if an advertised vehicle sells before the ad campaign ends?