Sudbury Dealer Loses Licence to Operate

Toronto, June 18, 2003 - Registration under the Motor Vehicle Dealers Act (MVDA) has been revoked for Auto Mart Sudbury Ltd. and its owner Rick Toulouse.

Under the MVDA – a public protection statute – all motor vehicle dealers and salespeople in Ontario must be registered with the Ontario Motor Vehicle Industry Council (OMVIC) and carry on business in accordance with the law and with honesty and integrity. In addition to the MVDA, all registrants must also adhere to OMVIC’s Standards of Business Practice.

A Proposal to Revoke the licences of Auto Mart Sudbury and Toulouse was issued by OMVIC’s Registrar after a routine inspection uncovered instances where the dealer failed to disclose material facts to consumers during the sale of various motor vehicles. Material facts (facts which could alter the consumer’s mind about purchasing a vehicle) must be disclosed on bills of sale -- failure to do so is a serious breach of the terms of registration and reflect a lack of honesty and integrity.

Evidence related to Auto Mart Sudbury’s failure to disclose material facts was presented during a hearing before the Licence Appeal Tribunal – an independent agency of the Ministry of Consumer and Business Services. In one instance Auto Mart Sudbury sold a 1995 GMC extended cab pick-up truck without disclosing the vehicle had been written off by an insurer and declared a total loss. A consumer purchased the vehicle having been told by Toulouse the only damage was to the front passenger side quarter panel. The bill of sale stated the vehicle was an accident repair and that no factory warranty remained. The consumer purchased the vehicle without knowing its true state.

When selling motor vehicles, dealers are obligated to take reasonable steps to determine the true distance the vehicle has travelled, whether it has liens against it and finally, any material information relating to the vehicle's condition or previous use.

“The decision of the Tribunal wasn’t based on just one incident,” states Mary Jane South, OMVIC’s Deputy Registrar. “There were a number of times when Toulouse failed to disclose material facts to consumers. Most of these incidents related to the sale of salvage vehicles. Also in question was Toulouse’s level of honesty when answering his applications for registration. All applicants are required to disclose past and pending convictions and charges, which Toulouse failed to do on various applications.”

Without registration, Auto Mart Sudbury and Rick Toulouse are now unable to take part in the business of buying, selling or leasing vehicles. Full text of the Tribunal’s decision is available through OMVIC or the Licence Appeal Tribunal.

Consumers are reminded to keep the following in mind when making a motor vehicle purchase:

• All dealers and salespeople in Ontario must be registered. To verify registration, visit www.omvic.on.ca or call 1-800-943-6002.
  If you believe someone is in the business of buying, selling or leasing vehicles and is not registered with OMVIC, you should contact OMVIC.
• OMVIC provides a free mediation service between consumers and dealers. To speak with a mediator, call OMVIC at 1-800-943-6002.
• Under certain circumstances, purchases made through a registered dealer are protected by a dealer-funded compensation plan.
  Consumers who purchase vehicles through private sales are not protected through this plan and cannot apply to it.
• Curbsiders pose as private individuals, but are actually in the business of illegally selling vehicles. In most cases the vehicles are stolen, odometer-tampered or have liens against them. If you do decide to buy privately, ensure the seller provides a Used Vehicle Information Package, and consider having the vehicle checked by an independent mechanic you trust.

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