Registrar's Report - August 15, 1997 - Issue #3

Special Curbsider Edition Dear OMVIC Registrant:

This special edition of the Registrar's Report is dedicated to updating you on our curbsider project. Over the last several months OMVIC has launched a comprehensive effort to attack the curbsiding problem. Our campaign has a number of key components: improving the level of cooperation from interested parties, better consumer awareness, and increased, focused enforcement.

COOPERATION:

We are seeking to gain the full cooperation for our campaign from our allies in both the wider motor vehicle and regulatory sectors.

The publishers of Auto Trader and Simcoe Shopper have expressed their willingness to cooperate and have been very helpful to date. And we have been approaching similar publications elsewhere in the province to solicit their cooperation as well.

Officials from both the provincial and federal tax departments have expressed interest in receiving curbsider information on a regular basis (and have assured us that they will take action where warranted). The media have been supportive of our campaign and press coverage has been very positive. Local and provincial police as well as the RCMP have assisted us by providing information and access to local facilities.

In addition to the above, we need your cooperation. Our investigations confirm what many of you have told us in the past: registered dealers themselves are one of the leading sources of inventory for curbsiders. If we're to be successful in our campaign, we need you to stop the flow of vehicles into the hands of curbsiders.

How do you know if you're dealing with a curbsider? Watch for the most obvious sign — a repeat purchaser, unless he's a registered dealer, is a curbsider. There are two steps you must take:

Stop selling vehicles to curbsiders; and let us know who they are.

Underpinning these goals will be our development of a Code of Practice to foster high ethical standards and professionalism.

As well, ensure that you and your staff keep proper records in order to identify repeat purchasers and to be able to trace them. Ensure that your staff understand that you will not tolerate them dealing with curbsiders.

Another helpful step that you can take is to ensure that vehicles you sell are properly registered to the purchaser. This makes it easier for OMVIC to prosecute the curbsider.

Remember: Without your cooperation, all of our other efforts will have limited effect and curbsiding will continue largely unabated.

CONSUMER AWARENESS:

Perhaps the most effective arena in which to fight curbsiders is in the marketplace itself. Curbsiders are able to flourish because too many consumers believe that they're safer dealing privately. Or else they think that they're much more likely to get a better deal through the classifieds. The risks of buying cars privately are not well understood, and the term "curbsider" is not widely known.

We need to increase consumer awareness of the risks of dealing privately and we need to help consumers to recognize curbsiders for the villains they really are.

To that end, we are launching a consumer awareness campaign involving posters, envelope stuffers to be included in Ministry of Transportation mailings, advertisements, consumer awareness columns and articles for newspapers, and an internet website currently under development.

Our message will be clear: if you're going to buy a car privately, be aware of the risks and take the necessary steps to avoid becoming a curbsider's victim.

ENFORCEMENT:

To date over 100 charges have been laid, numerous convictions have been registered, countless warning letters have been sent and many cautionary interviews held. In addition, OMVIC investigators are continuing to pursue scores of other reported curbsiders. In the very near future we'll be installing a curbsider hot line in order to make it easier for people to report suspected curbsiders. Our intention is to respond appropriately to all cases reported to us.

If you have any questions or suggestions, or to identify a curbsider, please contact us at the numbers shown below (Any tips will remain confidential). As usual, your comments are welcome and I look forward to staying in touch.

Best regards,

Carl Compton,
Registrar,
Motor Vehicle Dealers Act