On July 11, 2018, the Ontario government announced the end of the Electric Vehicle (EV) Incentive Program. As a result, incentives will only apply to eligible inventory that dealers have in stock, or on orders made by dealerships with manufacturers on or before July 11, 2018. These vehicles must be delivered to the consumer, registered, and plated by September 10, 2018 to qualify for the incentive. Details of the announcement can be found here.

EV Incentives – Contract Disclosure

Selling an EV with an unknown or unconfirmed delivery date is currently problematic as failure to deliver to the consumer, register, and plate the vehicle by September 10, 2018, could dramatically increase the cost (up to $14,000) as the vehicle would no longer qualify for the Electric Vehicle Incentive Program.

If a dealer sells an EV that includes the incentive program rebate, but delivery by September 10th is uncertain, the contract must clearly, comprehensibly and prominently disclose what the consumer will have to pay if the vehicle is delivered after September 10th – simply including a vague clause such as "subject to price increase", is not clear and comprehensible and may be considered an unfair business practice and contravention of the Consumer Protection Act.

A better practice would be to make such contracts conditional on delivery and attainment of the incentive.

Advertising Government Incentives/Discounts

Similar to the "Advertising MSRPs" Bulletin issued on May 3, 2018, if a dealer advertises an EV price that includes the government incentive, the advertisement must indicate that the incentive has been applied. If a dealer fails to do this, consumers could be misled and anticipate the incentive will be applied to the dealer’s advertised price.

Advertising - Limited Quantities

The Standards of Business Practice stipulates that if there are limited quantities of vehicles for sale, the advertisement must disclose the amount of units that are available.

Additionally, OMVIC recommends dealers advertising EV prices that include an incentive/rebate include the program eligibility requirements (e.g. delivery deadline) clearly and prominently in the ad.

Free Ad Review Service & For More Information

Dealers who have questions about the advertising rules and regulations, or who want to have an advertisement reviewed before publishing, can contact OMVIC’s Business Standards Team at . This is a free service! Please allow two to three days for a review. All other questions can be directed to OMVIC’s Complaints and Inquiries Team at 1-800-943-6002x3942.