OMVIC OMVIC Advertising and Disclosure Rules 5 — Questions and Answers
Question 1: A salesperson verbally promises a buyer that the advertised price includes a full tank of gas, but this is not in the written contract. Under OMVIC's rules:
- Written contracts govern; verbal promises not in writing are unenforceable and can be misleading if used as a sales tactic (Correct answer)
- Verbal promises by salespeople are always binding under OMVIC
- The dealer must honor any verbal commitment made by staff
- The consumer must prove the promise in small claims court before OMVIC acts
Correct answer: Written contracts govern; verbal promises not in writing are unenforceable and can be misleading if used as a sales tactic
OMVIC requires all material terms to be in writing; using verbal promises to close a deal that aren't documented can constitute a deceptive act.
Question 2: An OMVIC-registered dealer advertises a vehicle with a 'Dealer Demo' label. What must be disclosed to the consumer?
- The vehicle's actual mileage and that it was previously used by the dealership (Correct answer)
- Only that the vehicle is new with minor use
- That the vehicle qualifies for a full new-car warranty regardless of use
- The names of all staff who drove the demo vehicle
Correct answer: The vehicle's actual mileage and that it was previously used by the dealership
Demo vehicles have prior use and actual mileage that must be disclosed, as this affects the vehicle's warranty start date and perceived value.
Question 3: Under OMVIC's advertising standards, comparative claims such as 'Lowest prices in Ontario' must:
- Be substantiated by factual, current market data (Correct answer)
- Be removed from advertising after 30 days
- Be approved by a competing dealer before use
- Include the OMVIC license number next to the claim
Correct answer: Be substantiated by factual, current market data
Superlative comparative claims must be based on verifiable and current evidence; unsubstantiated comparisons mislead consumers about relative pricing.
Question 4: A dealer fails to disclose in an ad that a vehicle was previously used as a police cruiser. OMVIC would likely view this as:
- A failure to disclose material information that could affect a buyer's purchase decision (Correct answer)
- Acceptable because police use is not legally required to be disclosed
- Only a problem if the consumer specifically asks about prior use
- Not an issue since the vehicle has been repainted and serviced
Correct answer: A failure to disclose material information that could affect a buyer's purchase decision
Prior use as a police or emergency vehicle is material information under OMVIC because it can significantly affect resale value, wear, and buyer preference.
Question 5: Which of the following advertising scenarios would NOT violate OMVIC rules?
- An ad that clearly states 'Price excludes HST and licensing fees' alongside the advertised price (Correct answer)
- An ad that lists a price applying only to a fully-loaded trim while showing a base-model image
- An ad claiming 'no administration fees' when an equivalent charge is included in a different line item
- An ad for a 'brand new' vehicle that was previously registered to a previous owner
Correct answer: An ad that clearly states 'Price excludes HST and licensing fees' alongside the advertised price
Clearly disclosing excluded taxes and fees is compliant because it gives consumers an accurate picture of what additional costs to expect.
Question 6: How does OMVIC treat an advertisement that uses small, hard-to-read disclaimer text to contradict a prominent headline claim?
- It is considered misleading if the fine print negates or significantly modifies the headline claim (Correct answer)
- Fine print disclaimers are always sufficient to satisfy disclosure obligations
- OMVIC has no jurisdiction over font size in advertisements
- Disclaimers in any size print are valid as long as they are present somewhere in the ad
Correct answer: It is considered misleading if the fine print negates or significantly modifies the headline claim
OMVIC's standard is that disclosures must be clear and prominent — fine print that contradicts a bold headline creates a misleading overall impression.
Question 7: Under OMVIC regulations, which entity is ultimately responsible for ensuring that all advertising produced on behalf of the dealership complies with OMVIC rules?
- The registered motor vehicle dealer (the dealership) (Correct answer)
- The advertising agency that created the ad
- The individual salesperson featured in the ad
- The manufacturer whose vehicles are being promoted
Correct answer: The registered motor vehicle dealer (the dealership)
The OMVIC-registered dealer bears ultimate responsibility for all advertising issued on their behalf, even if an external agency or manufacturer produced the materials.
OMVIC OMVIC Advertising and Disclosure Rules 5
A salesperson verbally promises a buyer that the advertised price includes a full tank of gas, but this is not in the written contract.
Under OMVIC's rules: