OMVIC’s Website Gets a Facelift

.on.ca

Fall 2013

The Dealer Standardis published by the Ontario Motor Vehicle Industry Council789 Don Mills Road, Ste. 800 Toronto, ON M3C 1T5T: 416-226-4500F: 416-226-3208Toll Free: 1-800-943-6002Executive Director: Carl ComptonWriters: Terry O’Keefe Sarah Choudhury

In this issue:• OMVIC Wraps Up Another

Successful Consumer Awareness Campaign

• OMVIC’s Website Gets a Facelift

• Problematic Trends

• Advertising Warranties on CPO Vehicles

• Serious Fines in Recent Discipline Decision

• Windsor Dealer Receives Jail Sentence

• Say It Ain’t So…

• Season’s Greetings

OMVIC’s annual Fall Consumer Awareness Campaign is wrapping up and early results prove it to be another success. The theme of this year’s campaign was “You’re Protected.” Launched in mid-September, the campaign promoted awareness of the protections consumers receive from Ontario’s consumer protection laws when they buy from an OMVIC-registered dealer (specifically all-in pricing, full disclosure of vehicle history, rescission rights (for specified non-disclosures), and access to the Motor Vehicle Dealers Compensation Fund), while making it clear

that private purchasers receive none of these protections. Secondary messages of the campaign warned consumers of the dangers posed by curbsiders and increased awareness of OMVIC’s role as regulator.OMVIC staff would like

to wish all dealers and salespersons a joyful holiday season and a happy New Year. OMVIC remains committed to providing excellence in service to all stakeholders as we continually strive to ensure a fair and informed marketplace for Ontario consumers and dealers alike.

Season’s Greetings

Dealers and salespeople may have noticed major improvements to OMVIC’s websites (omvic.on.ca and buywithconfidence.ca). Designed with a fresh new look and user-friendly navigation, the website offers quick and easy access to important information for registrants and consumers alike.

OMVIC Wraps Up Another Successful Consumer Awareness Campaign

Read more inside

Problematic TrendsOMVIC inspectors continue to see a growing number of dealers selling vehicles to so-called exporters, without conducting any due diligence to ensure the buyers are actually OMVIC-registered exporters. The Used Car Dealers Association (UCDA) also reports that it continues to hear about this issue from its members despite bulletins being issued. Put a stop to this problematic trend by doing the following:

Ensure Exporter is OMVIC-RegisteredThe Motor Vehicles Dealers Act, 2002 (MVDA) requires exporters (i.e., dealers in the business of purchasing vehicles for the purpose of exporting outside of Ontario) to be registered with OMVIC.

Individuals in the business of exporting vehicles without OMVIC registration are considered curbsiders. Selling to curbsiders is a serious breach of the MVDA and OMVIC expects dealers to take reasonable steps to ensure they do not supply curbsiders with inventory. If dealers are unsure of the registration status of a buyer who claims to be an exporter they can check the purchaser’s registration on OMVIC’s website (https://www.omvic.on.ca/RegistrantSearch/index.aspx); dealers can also ask to see the person’s registration certificate. The MVDA requires all dealers and

salespersons to carry their certificate while conducting business and to present it to anyone who asks to see it. Dealers can also contact OMVIC directly to confirm the status of an exporter by calling 1-800-943-6002 ext. 5105.

Request Proper Bill of LadingThe only acceptable proof of export is in the form of a bill of lading. A bill of lading can only be issued once the vehicle has been delivered to a shipping company – also known as a common carrier. It is the common carrier that provides the bill of lading which must clearly identify the overseas destination.

The UCDA advises that “pre-made” or “in-house” bills of lading are not sufficient documentation and cannot be used for tax exemptions.

Importance of Charging HSTDealers are cautioned to ensure adherence to the Canada Revenue Agency (CRA) requirements surrounding HST. Vehicles are only exempt from HST if the dealer ensures they are delivered to a buyer outside of Canada. Otherwise, HST must be collected.

Advertising Warranties on CPO VehiclesIt has recently come to OMVIC’s attention that some dealers are advertising certified pre-owned (CPO) vehicles that include a manufacturer’s warranty stated in term/mileage (e.g., 6 years or 120K). While this in and of itself is fine, if the manufacturer’s warranty is actually based on the vehicle’s original in-service date then the advertisement must clearly and prominently state the actual warranty available is the balance or remainder of a manufacturer’s warranty (e.g., comes with balance of 6 year/120K warranty).

The Code of Ethics requires dealer advertising to be clear and truthful; an ad suggesting the full warranty applies, when it does not, is neither clear nor truthful.

OMVIC conducted the 2013 campaign using diversified forms of media including online (Kijiji.ca and autoTRADER.ca − specifically targeting consumers shopping for vehicles), TV, print, billboards and through engagement with mainstream media.

OMVIC also sponsored the Lemon-Aid Car Show on Rogers Community Channel 10 in Toronto; the show airs weekly on Tuesday nights at 9 p.m. with five weekly repeats until May 2014.

This year, a new “tool” was introduced as part of the awareness campaign: an interactive online quiz. The Car-Buying Quiz, permanently available from OMVIC’s website, is a fun and engaging way to let consumers test their vehicle-buying knowledge while educating them on their car-buying rights in Ontario (see some of the survey results below).

Why conduct a campaign?Educating consumers (and registrants) is vitally important and a key part of OMVIC’s mandate. Ensuring consumers

know what their rights are, when those rights apply (i.e., only when buying from a registered dealer) and when they don’t (when buying privately) provides an important service to Ontario consumers and helps build trust in OMVIC-registered dealers. Better-

informed consumers helps prevent problems and ensures that

those who value consumer protection seek out the services of a registered dealer.

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More than 120 MILLION Impressions to be Generated from OMVIC’s Consumer Awareness Campaign

Quiz ResultsAs was mentioned previously, this year’s campaign introduced a Car-Buying Quiz. Kijiji and autoTRADER ads challenged readers to take the quiz and test their car-buying savvy. The quiz was hugely popular and yielded some interesting results:

65% knew a curbsider was an unlicensed dealer

75% understood retail vehicle sales in Ontario were regulated by OMVIC

74%understood that they are only protected by consumer protection laws when they buy from a registered dealer

43%said they would buy privately even knowing they were not protected by consumer protection legislation

21% mistakenly believed they were protected when buying privately

The results from this year’s consumer awareness campaign will undoubtedly assist Ontario vehicle-buyers and dealers. 2013’s theme “You’re Protected” will continue to resonate in OMVIC’s future messaging.

Take OMVIC’s Car-Buying Quiz!Visit omvic.on.ca/portal/quiz

Page 3

Media Outlet Impressions (possible views)

Online (Kijiji.ca, autoTRADER.ca, Toronto Sun) 28,734,600

Television (CP24 and OMNI) 34,624,200

Out of Home (digital billboards) 32,790,000

Public Relations/Media 4,082,700

Findings & Results (at the time of writing)

It’s expected the campaign will generate in excess of 121,000,000 impressions (possible views), each an opportunity to educate Ontarians that “You’re Protected” when you buy from an OMVIC-registered dealer.

Page 4

.on.ca

Media Outlet Impressions (possible views)

Online (Kijiji.ca, autoTRADER.ca, Toronto Sun) 28,734,600

Television (CP24 and OMNI) 34,624,200

Out of Home (digital billboards) 32,790,000

Public Relations/Media 4,082,700

Serious Fines in Recent Discipline Decision421342 Ontario Ltd, o/a Kingston Nissan

and CarOne, as well as Trevor Cotton,

were recently fined a total of $27,000

for breaches of OMVIC’s Code of Ethics

regulation (CoE).

In an agreed statement of facts the

discipline panel heard the dealer failed to

provide required disclosures including:

• Failure to disclose out-of-province

history on a contract

• Failure to disclose former daily rental

history on a contract

The panel also found the dealer’s

advertising to be non-compliant in the

following areas:

• Advertisements failed to prominently

disclose vehicles were being sold as-is

• Advertisements failed to disclose the

former daily rental status of vehicles

• Advertisements failed to include an

all-in price

As well, it was found the dealer

employed unregistered sales staff and an

unregistered business manager.

In determining the fines, the discipline

panel stated “the penalty is appropriate

to the circumstances” and the panel was

satisfied “the penalty was sufficient to

deter the registrant from similar acts,

while sending an appropriate message to

other registrants about their obligations

with respect to advertising and disclosure

of material facts in writing.” It should

be noted Discipline Panels are made up of

three individuals, two of whom are dealers.

In finding the parties in breach of the CoE

and MVDA the panel ordered the following

penalties:

• Kingston Nissan fined $8,000

• CarOne branch fined $8,000

• Cotton ordered to pay $9,000

The parties were also ordered to pay the

Registrar’s costs ($2,000) and Cotton was

ordered to successfully complete the OMVIC

Certification Course.

All Discipline Decisions must be made

public as mandated by the MVDA. To access

this discipline decision in full and to

view previous decisions, visit OMVIC’s

website at: http://www.omvic.on.ca/portal/

DealersSalespersons/EnforcementCompliance/

DisciplinaryProcess/DisciplineDecisions.aspx

Windsor Dealer Receives Jail SentenceHussain Al Manhsor was sentenced to 180 days jail time and his dealership 1659560 Ontario Inc. operating as Sandwich Auto has been fined $90,000 on multiple counts of breaching the MVDA. The Windsor-area man and company were convicted of:

• Trading off premises• Retaining unregistered sales staff (two counts)

• Falsifying documents

• Failing to provide a purchaser with required financing information (CPA)• Failing to maintain required records (six counts)

• Failing to provide a copy of the Bill of Sale

Manhsor was sentenced to 15 days (to be served consecutively) on each of the 12 charges. Sandwich Auto was fined $7,500 on each count.

Return undeliverable Canadian addresses to:

789 Don Mills Road, Ste. 800Toronto, ON M3C 1T5

Publication Mail Agreement #40021863

The Dealer Standard

It is with heartfelt thanks and appreciation that OMVIC bids farewell to Melinda Williams, OMVIC Project Director at Georgian College’s Automotive Business School of Canada (ABSC); Melinda retires December 19 after more than 16 years of service.

Melinda began her Georgian College career in administration for International Studies in 1997. In 1999, she found herself in charge of the fledgling “OMVIC Project,” a new department responsible for developing and administering the OMVIC Certification Course. Fourteen years later, it’s clear Melinda’s talented management, ongoing efforts to improve the program and commitment to the partnership between Georgian College and OMVIC has been the foundation of its great success. Melinda’s team at ABSC now delivers the Automotive Certification Course to 5,500 students every year!

“Melinda is well respected by her colleagues for her ability to facilitate and anticipate the needs of the industry without ever compromising the integrity of

the partnership OMVIC shares with Georgian College,” states Marie-Noëlle Bonicalzi, Dean of ABSC.

OMVIC’s Manager of Education, Terry O’Keefe couldn’t agree more. “Melinda’s genuine interest in providing a superior educational experience to students, her exemplary customer service skills and her unquestionable dedication to excellence will be truly missed. OMVIC would like to thank Melinda for her years of dedicated hard work; not just for OMVIC, but for each and every dealer and salesperson who successfully completed the Certification Course. We wish her much happiness and good fortune.”

Say It Ain’t So…