If a dealer’s ad includes a price for a vehicle, that price must include all charges related to the sale of the vehicle. This includes freight and inspection charges, administration fees, other fees/charges, levies and taxes. Dealers don’t have to include taxes in the advertised price so long as the ad indicates in a clear, comprehensible and prominent manner that taxes are not included in the price.
Note: The following are more detailed explanations and examples of OMVIC’s expectations for meeting certain requirements set out in Section 36 of the General Regulations under the MVDA including “all-in pricing.” Where there is a requirement for information/disclosure to be set out in a “clear, comprehensible and prominent” (CCP) manner, OMVIC will consider the size and proximity of this disclosure relative to the advertised price.
Section 36(7) states,
“If an advertisement indicates the price of a motor vehicle, the price shall be set out in a clear, comprehensible and prominent manner and shall be set out as the total of,
- The amount the buyer would be required to pay for the vehicle; and
- Subject to subsections (9) and (10), for all other charges related to the trade in the vehicle, including, if any, charges for freight, charges for inspection before delivery of the vehicle, fees, levies and taxes.”
“All other charges” includes any charge treated as mandatory by the dealer. A charge is deemed to be mandatory if:
- The customer is not given an express opportunity to decline the charge during the negotiation process; or
- It pertains to features or additions referred to in the advertisement or during negotiations (unless they are described as optional extras in the advertisement or during negotiations).
For instance, if a customer is expected to pay an administration fee, documentation fee, fee for a safety standards certificate or for a window-etching product, those amounts must be included in the all-in price. (These are examples only and are not intended to be a complete list of all fees.)
Section 36(8) states,
"If an advertisement that indicates a price for a motor vehicle is placed jointly by two or more registered motor vehicle dealers, the advertisement shall state that the price for the vehicle in an actual trade may be less than the price set out in the advertisement."
If the ad is placed by more than one dealer, words such as “Dealer may sell for less” must be used.
Section 36(9) states,
“Subject to subsection (10), if an advertisement that indicates a price for a motor vehicle is placed jointly by two or more registered motor vehicle dealers and if an amount of a charge mentioned in clause (7)(b) varies as between the dealers, the advertisement shall indicate, in a clear, comprehensible and prominent manner,
- That a buyer of the vehicle may be requested to pay that amount in addition to the price indicated in the advertisement; and
- What the charge is for.
If the ad has been placed by two or more dealers, and there is a fee that varies from one dealer to another, that fee may be excluded from the all-in price, but the amount of the fee must be disclosed along with a description of what the fee is for in a CCP manner. For instance, “The above price does not include administration fees which vary from $199 to $499, depending on the dealer.”
Section 36(10) states,
“Clause 7(b) and subsection (9) do not apply to amounts under the Retail Sales Tax Act or to the federal goods and services tax if the advertisement indicates in a clear, comprehensible and prominent manner that those amounts are not included in the price indicated in the advertisement.”
Section 36(10) allows dealers to exclude HST from the advertised price as long as this fact is disclosed in a CCP manner in the advertisement.
Section 36(11) states,
“If an advertisement that indicates a price for a motor vehicle is placed jointly by two or more registered motor vehicle dealers, each of the dealers shall ensure that the advertisement complies with subsection (7), (8), (9) and (10).”
Section 36(11) requires each dealer involved in placing an advertisement ensures it complies with the Act.