Dealer Self-management Organization Holds First Annual General Meeting


Toronto, April 07, 1998 - The first Annual General Meeting of the Ontario Motor Vehicle Industry Council (OMVIC) was held yesterday (April 6) in Toronto at the Regal Constellation Hotel.

Since January 7, 1997, OMVIC has been performing all of the responsibilities relating to the administration of the Motor Vehicle Dealers Act previously performed by the Ministry of Consumer & Commercial Relations. These activities include registration of dealers and salespersons, dealership inspections, investigations, prosecutions, handling consumer inquiries and mediating complaints.

In his speech to attendees, Chairman of the Board John Carmichael described the accomplishments of the Council in its first year of operation. OMVIC has initiated a number of programs designed to increase the professionalism of the industry. A Code of Ethics has been developed, Rules of Business Practice have been drafted, and a certification program for new dealers and salespersons is planned for the fall of 1998. The certification program is being developed in conjunction with the Canadian Automotive Institute at Georgian College.

In its first year of operation, OMVIC staff have handled a record number of consumer inquiries, and successfully mediated some 1100 disputes. Dealership inspections have increased and the number of entities charged and convicted, particularly curbsiders, is equal to the combined total of the previous four years.

Under OMVIC, registration requirements under the MVDA - honesty, integrity and financial responsibility - are being more strictly enforced than ever before. The number of Registrar’s actions, including registration refusals and revocations, is several times higher than the year immediately prior to OMVIC’s creation. According to Carmichael, “This increase in the level of activity of the Registrar’s office reflects OMVIC’s commitment to the people of Ontario to significantly raise the standards of the motor vehicle retail industry in the shortest possible time."

OMVIC was delegated responsibility for administering Ontario's Motor Vehicle Dealers Act (MVD Act) on January 6, 1997, pursuant to the Harris government's Safety & Consumer Statutes Administration Act (SCSA Act).

The SCSA Act allows Consumer Minister David Tsubouchi to delegate responsibility for a number of statutes to non-profit associations formed for the specific purpose of administering the legislation. The motor vehicle industry was the first sector to achieve self-management pursuant to the SCSA Act.

According to Minister Tsubouchi, "Our government believes that mature industries are far more effective in regulating the marketplace than government. OMVIC has demonstrated its commitment to consumer protection through successful initiatives such as its crackdown on curbsider." Carmichael pointed out that OMVIC's performance in its first year of operation certainly confirmed that belief.

Other administrative authorities created pursuant to the SCSA Act include the Real Estate Council of Ontario, the Travel Industry Council of Ontario and the Technical Standards and Safety Authority.