Motor Vehicle Dealer Industry Regulations

MVDA and Related Statutes

The Motor Vehicle Dealer industry in Ontario operates under the umbrella of the Motor Vehicle Dealers Act. The administration of this Act and its regulations is the direct responsibility of OMVIC. Individuals and businesses buying and selling vehicles for a living must adhere to the principles of the act. Otherwise, OMVIC has the authority to impose disciplinary and legal action upon them. Some requirements contemplated by other statutes and regulations – Consumer Protection Act (and Regulations), Sale of Goods Act, Highway Traffic Act, Retail Sales Tax Act, Business Corporations Act, etc. – must also be observed by members of the industry.

Note: These Acts are administered by government agencies like the Ministry of Consumer Services and the Ministry of Transportation. OMVIC has the authority to invoke these Acts exclusively on industry-related cases and under certain conditions only. Examples of issues that fall outside OMVIC's jurisdiction include vehicles repaired by licenced mechanics, private vehicle sales and safety inspection certificates.

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Standards of Business Practice, 2010

Section 6 of the Motor Vehicle Dealers Act, 2002 (the “Act") requires dealers and salespeople (collectively referred to as “Registrants”), to conduct business activity with honesty, integrity, financial responsibility and in accordance with law. It is important to note that despite any contract or waiver to the contrary the Code of Ethics applies to all Registrants.

The Standards of Business Practice, 2010 apply to all Registrants in Ontario, including all persons employed, appointed or authorized by a motor vehicle dealer to act on the dealer’s behalf in any transaction arising from or related to the trade in a motor vehicle. Registrants who disregard the Code of Ethics are subject to having their conduct reviewed and, after a fair review of the situation, may face disciplinary action by the Discipline Committee.

The purpose of the Standards of Business Practice, 2010 is to assist Registrants by illustrating what is expected of them. The Standards of Business Practice, 2010 attempts to illustrate the Code of Ethics by providing practical examples and by applying the standards of honesty and integrity in specific situations. These represent minimum standards and are illustrative rather than exhaustive. OMVIC anticipates that Registrants will wish to exceed these minimum standards and that they conduct all business activities with honesty, fairness, integrity and within the law at all times.  

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