Motor Vehicle Industry Regulations & Acts

//Motor Vehicle Industry Regulations & Acts

Motor Vehicle Industry Regulations & Acts

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:

  • Integrity
    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.
  • Accountability
    It is the responsibility of the dealer to ensure that every person he employs as a salesperson adheres to the applicable laws and regulations.
  • Compliance
    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.
  • Respect
    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.
  • Professionalism
    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

Motor Vehicle Dealers Act & OMVIC Rules
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.

Also Read: Reasons for refusal of Dealer or Salesperson Motor Vehicle Licence by OMVIC

By | 2018-08-28T07:35:52-04:00 August 5th, 2018|OMVIC Licence|1 Comment

About the Author:

Anar Dewshi is a regulatory and licensing lawyer specialising in OMVIC regulated dealerships and salespersons. See complete contact details here.

One Comment

  1. Helen M. Joe November 29, 2018 at 11:10 pm - Reply

    Hi my name is Helen Marie Joe. I am 63 years with multiple scleroses. In November of 2016 I purchased a Mini Countryman S AWD ALL4 from Mini Downtown Toronto. The vehicle was manufactured in 2012. I explained I needed a safe vehicle as either I or my daughter would be transporting my grandson who had and has breathing issues. Shortly after after driving Finn to the Clinic we were locked in the back of the vehicle as I could not get the door open. I returned the vehicle and had to fight with service to fix the door locks (free of charge). I’ve had the vehicle for two years; it has lost power on two occasions while driving on highways; luckily both times close to exits and driving in the far outside lane. First the fuel pump, then the Alternator. Both covered under extended warranty with I-Select Insurance for 5 years or 50,000 kms whichever came first. In June of 2018 we brought the Mini to Mini Durham, Ajax to have the brakes replaced. That work was done. However about two weeks later my daughter heard the same grinding noise heard prior to having the brakes replaced. I called Mini Durham and spoke with the Service Advisor Jerome who advised me they would inspect the earlier brake job. We dropped off the vehicle. I called at about 3:00 p.m. responding to a message from a service advisor, a Linda Locke who informed me two mechanics or technicians took the mini for a test drive and did not feel the brakes needed to be reinspected. I told Linda I had an appointment to have the brakes inspected and was informed by Tyronne that would be done. She said an inspection just wasn’t going to happen because two experienced mechanics said it wasn’t necessary. I raised my voice and said it had to happen because we were transporting a sick child and needed assurance the brakes were safe. She said I was abusing her and hung up. I kept calling back and the other woman would hold the phone while she listened to this Linda Locke asking if it was me and she should hang up the phone as I was tying up the lines. Finally at about 4:45 I got a call from Tyronne the Service Manager saying he was then looking at the brake job and it was fine. He said some people can make mistakes. I said yes absolutely, but I could not understand why I was the bad person insisting the brakes be inspected. I told him I thought I believed him, but to be sure he should drive or have someone else drive the mini to me in Port Perry. If he or they believed the brakes were o’kay that would be good for me. He had the mini delivered the next day. The grinding noise was gone. On November 7th my daughter had to pull over on the roadside because she heard a howling noise. She had Finn in the car seat. She said she also smelled something like burning rubber. She called my husband, her husband and my son wondering if it was safe to continue driving home. She wasn’t too far from our house; and Finn was screaming his head off. The advice was something probably got stuck in the wheel somewhere causing the noise and smell. My daughter drove home. The next day (Big Leap of Faith) I called Mini Durham in Ajax and left a message for Tyronne the Service Manager. I explained what happened the evening before. The howling and smell from the back of the vehicle. Tyronne never returned my call. I thought Mini Durham, Ajax because I wasn’t sure how far the vehicle could drive or if I needed a tow truck. I had an appointment with Canadian Tire to get the Winter Tires on the Mini that Saturday. I called Thursday evening and asked them if they could check out the sound. Canadian Tire about ten minutes from our house. They told me if I brought it in the next day, the Friday, they had more mechanics working and they would be able to have a look. So the mechanic said he had the wheels spin and he heard the howling noise. He said in his opinion it was the Rear Back Differential Cuppola. He stated we should bring it back to the dealer if we had extended warranty and or for a second opinion. We asked if the vehicle could be driven to Mini Downtown Toronto. He said yes, just not across country. My son in law dropped the Mini off early Monday morning on November 12. I called the Service Advisor Jamie Smith on Monday afternoon on November 12. He said the insurance said they would send someone down the next morning to inspect. I called Tuesday, no show from the insurance. Jamie said, maybe tomorrow, so Tuesday morning, no show. I called again Wednesday afternoon; and Jamie Smith said he had a call from a mechanic from the insurance company and he had gotten parts for the Rear Back Differential. And the mechanic was now waiting for approval from a John. Jamie Smith told me that he didn’t have John’s last name and that when he called for him at the insurance company the John had to be located and he got bounced around until John came on the line. I had a John listed as a contact from the fuel pump incident. John with I-Select’s phone # and John’s extension. I called John and left a message, saying I wasn’t sure if I had the right John and left him a message re I had MS and my grandson had breathing issues and we did not want refurbished parts put on the vehicle. I called Jamie Smith at Mini Downtown Service on Thursday and he said he had just received an email from the John. And the John said he wasn’t going to accept those parts the mechanic found. Jamie said John would send someone down the next morning if there wasn’t a snow storm. There was a contact from a sales person explaining that the inspector was at the dealership; that he would be talking to Jamie and that I could expect a call ASAP. So ASAP meant the following Tuesday when Jason Smith called and left a message saying the insurance company had now given permission to fix the Rear Back Differential. Apparently it was to be a costly job of approx $5,000.00 plus tax. By this time I had contacted Mini Canada and spoke to a case manager regarding the “no information or updates” That I was done with the Mini, it was a lemon, and I couldn’t get service. No one explained whether the parts for the Rear Back Differential were refurbished or not. I didn’t get any courtesy transportation. I was a nuisance. So I advised Mini Canada I was not taking physical possession of the Mini, it had stopped in traffic twice, they didn’t want to inspect a prior brake job and I was done with all the drama. Earlier on November 12th, because Jamie Smith left a message saying the insurance company had given the approval; I called the maintenance manager and left a message. His first name was Mario. I said I was giving them permission to go ahead with the Rear Back Differential as I had the insurance and the vehicle was in my name. I also explained I would not be taking physical possession of the vehicle as it was unsafe and I was transporting a child who had breathing issues. Later I called Mario again, to ensure he got my message. I told him I was asking for a buy-out from Mini Canada to pay off my debt. Last Friday Mini Canada decided because they said the insurance company paid for the Back Rear Differential which was expensive; Mini Canada would not buy-out the lemon. They said to trade it or ask the mini downtown toronto to buy back the vehicle. I told Mini Canada I was unhappy and would have to take legal steps to both compel answers and get compensation. I told her that Mini Canada and all the Mini’s were in contravention of the Motor Vehicle Dealer’s Act; and Codes of Ethics, etc. I told her that one constructive option for me was to explain on social media what happened and to tell the public to be wary of purchasing a mini. It was buy, out the door and do not come back. You will be treated as a nuisance, and you will have to keep calling because no one will call you to let you know what was going on; nor would you be given a courtesy vehicle. Two days ago, I emailed two business managers and a general manager at Mini Downtown; explained I was unhappy and wanted a full buy back on the vehicle. Again silence. That’s all I’ve gotten. So the Mini has been parked at the Downtown Toronto site since November 12, 2018. Ten days ago; and I still have no information as to what actually got fixed/re what makes up a Rear Back Differential/why this could have happened/how much it cost/if refurbished parts or new parts were used/or any other issues involving Min’s intention. I have paralegal experience from BC. Guess I’m trying to make a long story short. It seems that if I file a complaint under the Motor Vehicle Dealer’s Act; any evidence uncovered or witness testimony cannot be compelled. Thanks for listening.

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