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Toronto, May 2, 1997- So far
this year, over 40 new
investigations have been started
by the Ontario Motor Vehicle
Industry Council (OMVIC),
against phantom car dealers, curbsiders and salespersons,
with additional charges being
laid weekly.
OMVIC is now responsible to the
government for administering the
province's Motor Vehicle Dealers
Act (MVDA) and ensuring a "fair,
safe and informed marketplace"
in Ontario's motor vehicle
industry. As a result, consumer
protection has taken a high
priority and unscrupulous
performers are feeling the heat.
Formerly regulated by the
Ministry of Consumer and
Commercial Relations, Ontario's
Motor Vehicle Dealers is the
first regulated business Sector
to become self-managed.
According to OMVIC Investigator
Don MacAndrew, in one instance,
to avoid being charged, a
dealership president bought a
car back from a customer for
over $8,200. That happened the
day after OMVIC advised him that
the car, sold by one of his
salespersons, had been written
off as a wreck in another
province. The intended buyer
later called MacAndrew to say
she could not thank him enough
for getting her money back.
In another incident, a curbsider
was charged for not being
registered with OMVIC, as
required by law, after he sold a
car for $2,000 when in fact, it
still had a $4,000 lien against
it. After being charged, the
curbsider pleaded guilty, was
fined $500, had the lien removed
and made restitution to the
purchaser. "Curbsiders" is car
industry jargon for those
unregistered dealers or
salespersons who take advantage
of unwary consumers, while
phantom car dealers are
registered, but they avoid
regulation by not operating at
their registered business
address.
In its first three months of
operation, OMVIC has taken
action against 306 phantom
dealers compared to 310 in all
of 1996. In addition to starting
over 40 investigations, it has
revoked eight licenses to date,
as opposed to three during 1996.
A 27-year veteran of the Metro
Toronto Police Force and an
11-year investigator with the
Ministry of Consumer and
Commercial Relations, MacAndrew
says the risk to consumers is
greatest when dealing with
curbsiders. According to
MacAndrew, the most common
complaints against curbsiders
are: the odometer has been
turned back; failure to disclose
the car was in an accident; and
invalid mechanical certification
or false claims as to the car's
condition.
Commenting on the strengthened
enforcement, MVDA Registrar Carl
Compton noted, "While it may be
a good start, we intend to go
even further. We are quite
serious about improving consumer
protection and consumer
confidence in the industry. It
also suggests that the best
consumer protection ground rule
is to deal only with a
registered dealer or
salesperson."
Ontario currently has
approximately 9,000 car dealers
and approximately 18,000
salespersons registered under
the Act. The OMVIC mandate
features important measures to
enhance consumer protection
while increasing the
professional standards of the
industry including:
- mediation of disputes between
consumers and dealers;
- certification requirements for
new applicants;
- across-the-board inspections of
every new dealer;
- inspection of registered dealers
on a regular basis;
- follow-up inspections to ensure
compliance with MVDA, where
deficiencies have been found;
- prosecution and termination of
illegal vehicle sellers (i.e.,
curbsiders and phantom dealers);
and
- consumer education programs
About OMVIC
The new OMVIC offices are in
North York at 36 York Mills Road
(at Yonge), Suite 110. They can
be reached by phone, at (416)
226-4500 fax (416) 226-3208. The
toll-free number is:
1-800-943-6002. A web site will
be introduced later this year.
Business hours are Monday -
Friday from 8:30 a.m. to 5:00
p.m.
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