OMVIC Starts Province-wide Crackdown


Toronto, June 4, 1997- The Ontario Motor Vehicle Industry Council (OMVIC) has launched a series of inspections throughout the Province in order to check if licensed dealers are actually operating out of their registered premises. The intention of this aggressive four-month campaign is to verify that dealers comply with this important requirement of the Ontario Motor Vehicle Dealers Act (MVDA). To date, more than 1,900 site visits have been conducted.

As planned, OMVIC is giving its enforcement activities a noticeable boost. In addition to the site visits, 115 investigations have been launched since OMVIC’s inception in January of this year. These investigations, plus a series of mediations, have resulted in the restitution to consumers of more than $70,000.

One of the biggest problems that OMVIC intends to address with these enforcement activities is the existence of curbsiders. The term curbsider refers to anybody that sells vehicles for commercial purposes, yet engages in this activity by posing as a private individual. By operating in this manner, curbsiders avoid registration, taxation and other legal and financial requirements that legitimate auto dealers must fulfill. These obligations include contribution to the Motor Vehicle Compensation Fund, the industry’s own consumer protection mechanism.

“Curbsiders frequently sell vehicles of dubious quality. In contrast, consumers are entitled to feel confident when conducting business with registered dealers,” says Carl Compton, Executive Director and Registrar of the Council. “OMVIC, the industry’s self-management body, is the result of motor vehicle dealers’ commitment to consumer protection, business leadership and industry professionalism. Their positive response to and support of our inspections shows how strong such commitment really is.”

For further information, or to identify a curbsider, call OMVIC at (416) 226-4500 or 1-800-943-6002.