Registrar's Report - September 18, 1998 - Issue #6

Dear member,

On April 21, 1998, OMVIC submitted to the Minister of Consumer & Commercial Relations its first Annual Report. In accordance with the Safety and Consumer Standards Administration Act, The Honourable David Tsubouchi tabled OMVIC’s Annual Report in the provincial legislature on June 25, 1998.

Highlights from our first annual report include the following:

Through OMVIC’s phantom dealer project, every registered dealer was subject to a site visit resulting in the imposition of 1,200 trade freezes;
OMVIC’s investigators laid charges against as many individuals and companies as were charged in the previous four years combined (most charges were laid under the Motor Vehicle Dealers Act or the Business Practices Act);
These charges resulted in 106 convictions, 79 of which were related to curbsiding;
There were seven times as many “Registrar’s Actions” in OMVIC’s first year of operation as in 1996 (Registrar’s Actions include refusals to register, revocations, imposition of terms and conditions, etc.);
A Code of Ethics was approved and distributed to all dealers;
OMVIC has been working closely with the Canadian Automotive Institute in the development of a certification course for dealer and salesperson applicants for registration (implementation is targeted for 1999);
Significant progress was made towards the development of Standards of Practice, a dealer-administered disciplinary process, and new advertising guidelines (See enclosed Marketing Standards).
If you would like to receive a copy of OMVIC’s first Annual Report, please contact us by:

Fax at 416-226-3208 or
Visit our website at http://www.omvic.on.ca .

IMPORTANT INFORMATION!

Enclosed you will find OMVIC’s new marketing Standards and an introductory letter from OMVIC’s Chair, John Carmichael. These Standards replace the Advertising Guidelines introduced in 1991. Please familiarize yourself with these new standards in order to ensure that your advertising is in compliance.

THESE NEW STANDARDS COME INTO EFFECT ON OCTOBER 1, 1998

OMVIC intends to rigorously enforce the standards, and we invite your help in policing ads. Please refer to the attached for further information about how you can help.

Also enclosed is information about a service that OMVIC is offering to dealers who may be considering expanding their operations by purchasing an existing dealership. With the written approval of the dealer being purchased, OMVIC will conduct a due diligence inspection reporting on a number of key factors of importance to the purchaser. For further information, please review the enclosed brochure.

As ever, if you have any questions or concerns, I’d like to hear from you.

Sincerely yours,

Carl Compton,
Registrar,
Motor Vehicle Dealers Act