|
Toronto, November 17, 1998 – The
unnamed 'Ontario agency that
regulates car dealers and has
adopted new guidelines to crack
down on misleading advertising'
referenced in the November 17
broadcast of CTV's W5 is the
Ontario Motor Vehicle Industry
Council (OMVIC).
Ontario’s new mandatory
Marketing Standards for motor
vehicle sales, which came into
effect on October 1, 1998, help
protect consumers from the types
of objectionable advertising
practices that were identified
on the broadcast, according to
Carl Compton, OMVIC’s Registrar
and Executive Director.
“Ontario’s new rules are among
the toughest you’ll find
anywhere,” said Mr. Compton.
“They are mandatory rules, not
guidelines, and address the
types of advertising that were
highlighted in the show. They
are designed so that new and
used motor vehicle dealers tell
the whole truth and nothing but
the truth in their advertising.
It’s that simple. And they are
backed by tough enforcement
measures.”
The OMVIC Marketing Standards go
to the heart of many of the most
common consumer concerns about
automobile advertising. There
are restrictions in the
Standards on the use of words
and phrases like “demo/used,”
“free,” “factory price” and
“dealer price.” When it comes to
information about pricing and
warranties, the Standards
require that consumers be told
exactly what they are getting
and what is not included. For
example, price advertising must
list any costs not included 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 true.
Information about how to obtain
full warranty terms and
conditions must be included in
the advertisement. Additionally,
the Standards stipulate that all
information set out in
advertising, including the “fine
print,” must be “sufficiently
clear and prominent” so
potential customers can easily
see and understand the
information.
“There has been a noticeable
improvement in car advertising
in Ontario in the six weeks that
the Standards have been in
effect,” said Mr. Compton. “The
vast majority of automobile
dealers are doing their best to
comply with the new rules.
Honest dealers know that clear
standards and rigorous
enforcement are required for a
level playing field and
increased consumer confidence.”
OMVIC is working collaboratively
with the Ontario Automobile
Dealers Association, the Toronto
Automobile Dealers Association
and the Used Car Dealers
Association to ensure that
dealers adhere to the Standards.
OMVIC has the authority to lay
charges, publish the names of
dealers who are not in
compliance, bring offenders
before disciplinary panels, and
impose remedies, which could
include fines (up to $25,000 for
individuals, $100,000 for
corporations), strict terms and
conditions attached to a
Dealer’s Registration,
suspension and/or revocation of
the Registration.
A copy of the Marketing
Standards can be obtained on the
Internet at
http://www.omvic.on.ca or by
phoning (416) 226-4500 or (800)
943-6002.
Ads that are not compliant with
the Standards can be forwarded
to OMVIC for action.
OMVIC was delegated
responsibility for the
day-to-day administration of the
Motor Vehicle Dealers Act on
January 7, 1997. OMVIC is the
first industry self-managed
regulatory body created by the
provincial government. In its
first 22 months of operation,
OMVIC introduced a Code of
Ethics for Dealers, launched a
consumer awareness campaign
against “curbsiders,” introduced
the Marketing Standards and
Enforcement Measures, and laid
667 charges, which resulted in
278 convictions.
Ontario has 9,000 motor vehicle
dealers and 18,000 salespeople
registered under the Motor
Vehicle Dealers Act.
|
