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Toronto, October 01, 1998 - New
advertising rules governing new
and used motor vehicle sales in
Ontario will help "level the
playing field" for both
consumers and dealers alike,
according to the Ontario Motor
Vehicle Industry Council
(OMVIC). The new rules come into
effect today.
"Ontario's new marketing
standards are about the toughest
you'll find anywhere. Their
intent is clear and simple: no
false statements, no empty
promises and no deceptive
representations of products or
services, " said John
Carmichael, Chairman of OMVIC's
Board of Directors. "Along with
the standards themselves, under
the mandate which OMVIC received
from the Ontario government, we
are releasing the measures we
will use to enforce the
standards. This is a major step
forward for consumers and
dealers alike."
The OMVIC Marketing Standards
are a product of a long
consultation process with
industry and dealer
associations, Advertising
Standards Canada and the
Canadian Automobile Association.
The Marketing Standards go to
the heart of the most common
consumer concerns about
automobile advertising. The
standards restrict the use of
words and phrases like "free,"
"factory price" and "dealer
price." Clear information about
pricing and warranties will
ensure that consumers know
exactly what they will be paying
and what is not included. For
example, price advertising must
list extras such as industry
specific taxes, freight charges,
pre-delivery inspections and
administration charges.
Warranties must not imply that
they cover the entire car or
last for an unlimited time
unless that is the case.
Information about how to obtain
full-warranty terms and
conditions must be included in
the advertisement. The
information that appears in
advertising to consumers must be
"sufficiently clear and
prominent" so potential
customers can easily see it and
understand it. "These Standards
are aimed at lessening the
natural anxiety consumers have
about buying a motor vehicle and
ensuring that Ontario consumers
have greater confidence in their
ability to make good buying
decisions," said Carl Compton,
Executive Director of OMVIC and
Registrar under the Motor
Vehicle Dealers Act.
"These new Marketing Standards
have received a very positive
response from dealers in
Ontario. The vast majority of
dealers are honest and they are
the first to want to see
unethical practices topped,
because it hurts their
reputations. OMVIC was set up to
deal with these issues and the
Marketing Standards are just one
of the many improvements we have
made since we assumed the
responsibility for motor vehicle
sales regulation in January
1997."
The Honourable David Tsubouchi,
Minister of Consumer &
Commercial Relations, delegated
responsibility for the
day-to-day administration of the
Motor Vehicle Dealers Act to
OMVIC on January 7, 1997. OMVIC
is the first industry
self-management body created by
the provincial government. In
its first year of operation
OMVIC introduced a Code of
Ethics for Dealers; launched a
consumer awareness campaign
against "curbsiders" and laid
over 200 charges resulting in
over 100 convictions of unfair
practices in the sale of motor
vehicles.
Ontario has 9,000 motor vehicle
dealers and 18,000 salespeople
registered under the Motor
Vehicle Dealers Act.
A copy of the OMVIC Marketing
Standards can be obtained by
contacting OMVIC at (416)
226-4500.
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