In Ontario, the motor vehicle dealer industry, including the salespeople and dealerships, is governed by the Ontario Motor Vehicle Dealers Act, or MVDA. The Ontario Motor Vehicle Industry Council (OMVIC) monitors the administration and execution of the Act and its regulations. Businesses and individuals who want to buy and sell vehicles for a living must adhere to the principles of the Act, failing which the Council may take legal action against them.
OMVIC dealer requirements, fundamentally, consists of the following three Acts and Regulations:
Motor Vehicle Dealers Act & OMVIC Rules
On behalf of the Minister of Government and Consumer Services, OMVIC administers and enforces the MVDA. The Act contains the following:
- The criteria for registration and other requirements to be fulfilled by persons engaging in the trade of motor vehicles.
- The important persons of authority and officers who must be appointed; Director, Deputy Directors, and Registrar.
- Prohibitions and exceptions to those restraints.
- Other information regarding complaints about registrants received, inspection to be conducted by the registrar, discipline proceedings, appeals received from the registrants, appeals committee, and appointment of members.
- Duties and responsibilities of motor vehicle dealers, disclosures to be made, trust account to be maintained, offences by the dealers, and the resultant penal actions.
- General information about confidentiality, fees payable, and names and details of the registrants.
- Purpose of the Motor Vehicle Dealers Compensation Fund, its Board of Trustees, claims that may be made by the registrants against the fund, and compensation to be made by the dealers.
Code of Ethics & Standards of Business Practices
The MVDA Code of Ethics defines the ethical practices to be followed by the dealers and salespeople. It includes the following:
The registrants must be financially responsible for carrying on the trade of motor vehicles and not indicate in any way that the remuneration in any form is fixed by any government authority.
- Disclosure & Marketing
A registrant must be faithful to his profession, describe the features, prices, and benefits of the motor vehicles clearly, must not make any false representations and should explain the terms of the contract to the customers honestly.
It is the responsibility of the dealer to ensure that every person he employs as a salesperson adheres to the applicable laws and regulations.
A registrant must ensure that all the documents and details given by him as required by the law are currently true and correct. He must also fulfill his obligations as per the Act.
While carrying on motor vehicle trading business, a registrant should not behave in a way that contradicts the law or use symbols and language that may be offensive to any other person.
While carrying on business, a registrant must not behave in a way that is not expected in his position, be dishonourable, or disgraceful.
Consumer Protection Act
The Consumer Protection Act came into existence with the aim of making consumers aware of their rights and duties and protecting them against any unfair or misleading practices. The principles of this Act safeguard people living in Ontario, who engage in any transaction. It also provides a medium for redressal in case of any grievances.
Hire the Best Lawyer to Help You Understand the Ontario Motor Vehicles Dealers Act
At Dewshi Law, we provide legal services at affordable rates to dealers and salespeople specializing in motor vehicles. We will help you interpret and understand OMVIC rules, OMVIC dealer requirements, and other applicable laws.
If you have any queries regarding the rules and regulations of the MVDA or any related laws, please reach out to us by calling 905-482-2832.