- Ontario Motor Vehicle Industry Council
-
The Ontario Motor Vehicle Industry Council (OMVIC) licences and regulates motor vehicle dealers in Ontario and administers the Motor Vehicle Dealers Act on behalf of the Minister of Consumer Services. OMVIC’s mandate is to maintain a fair, safe and informed marketplace by ensuring registration of dealers and salespeople, inspecting dealerships, maintaining a complaint line for consumers, conducting investigations and enforcing the Act and its associated rules and regulations. OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of a Board of Trustees. Registration with OMVIC is mandatory for Ontario’s motor vehicle dealers and salespersons[1].
OMVIC was created on January 7, 1997 and marked the first regulated business sector to move to self-management. OMVIC is non-profit and governed by a 12-member Board of Directors. Seventy staff members, a number of whom work from regional home-based offices, provide OMVIC's services.
A new Motor Vehicle Dealers Act (MVDA) became law in Ontario on January 1, 2010. Under the new MVDA there are broad changes to the way dealers must operate. It clarifies former "grey areas" by stipulating clear requirements for advertising, pricing, vehicle disclosure, contracts and consumer remedies[2]. OMVIC’s YouTube channel launched in conjunction with the introduction of the new Act.
Contents
OMVIC’s Objectives
- Consumer protection through pursuit of those who would prey on an unwary public
- Increased consumer confidence through compliance activities and complaint handling
- Consumer awareness through dissemination of information concerning consumer rights via public information and awareness programs
- Dealer professionalism through certification programs for new dealers and salespersons
- Increased accountability through administration of a Code of Ethics, Standards of Business Practice and an open disciplinary process
Registration
Registration is mandatory for motor vehicle dealers and salespersons in Ontario. Dealer licences are renewed annually while salesperson licences are valid for two years.
OMVIC conducts criminal record searches Canada-wide on every individual entering or returning to the industry[3]. These background searches assist in ensuring anyone entering the industry will conduct themselves with honesty and integrity, as well as in a financially responsible manner – all of which are requirements of the MVDA. Completion of the OMVIC Certification Course is also a requirement for registration[4].
Under the new MVDA there are classes of registration. These include:- General Dealer (new and used vehicles)
- General Dealer (used vehicles)
- Wholesaler
- Exporter
- Broker
OMVIC will not grant or renew registration to a dealer unless the following preconditions have been met:
- The required fees are paid
- The applicant is at least 18 years of age
- The applicant has not been refused or revoked by OMVIC within the last two years
- Neither the applicant nor any interested or associated persons are in default with the Ministry of Revenue or the Motor Vehicle Dealers Compensation Fund
- Identified persons have completed the OMVIC Certification Course
Salespeople must meet the following preconditions:
- The required fees are paid
- The applicant has not been refused or revoked by OMVIC within the last two years
- The applicant has completed the OMVIC Certification Course, where required
OMVIC’s Registrar determines whether applicants qualify for registration and whether existing registrants continue to be qualified for registration. In order to keep registration valid, registrants must abide by industry legislation and OMVIC’s Standards of Business Practice. Failure to do so may result in administrative action or even a proposal to revoke registration. The Registrar has a responsibility to propose refusal or revocation of registration, or to propose terms and conditions of registration, as appropriate. If an applicant has been refused or had their registration revoked, they cannot reapply to OMVIC for a period of two years.When the office of the Registrar proposes to refuse or revoke registration, the affected applicant or registrant may request a hearing before the Licence Appeal Tribunal (LAT). In such cases, the Registrar’s office presents the case for refusal or revocation before a panel of the Tribunal. The panel may direct the Registrar to carry out the proposal, modify the proposal or set aside the proposal and replace it with its own order[5].
Other registration activities include dealer and salesperson renewals, processing information changes and salesperson transfers from dealer to dealer.
Complaint Handling Process
OMVIC’s complaint team handles inquiries and complaints from both consumers and dealers regarding the conduct of registered motor vehicle dealers in Ontario. Complaints can be submitted online through OMVIC’s website (www.omvic.on.ca) and Buy With Confidence (www.buywithconfidence.ca), or by phone at 1-800-943-6002.
Intake staff collect basic information initially, provide self-help instructions to the consumer/dealer and escalate the file to a complaint depending on the nature of the concerns and the information provided by the complainant. In many situations, consumers are encouraged to settle the disagreement by contacting the dealer directly.
Once a complaint file is opened, it may take anywhere from a few hours to a few weeks – or even months – to complete, depending upon the complexity of issues, the availability of documents and the level of cooperation of those involved. However, the vast majority of complaint files are resolved within a few days. Issues related to liquidated damages, misrepresentation, vehicle condition, contract disputes and safety certificates are the most common complaints handled.
In the event a consumer feels a complaint has not been handled properly by OMVIC, the consumer may appeal to the Appeals Committee of OMVIC’s Board of Directors. The Appeals Committee is chaired by a non-industry Board member appointed by the Ministry of Consumer Services.
Enforcement
Inspections
The MVDA requires members to conduct business from premises approved by the Registrar and sets out the requirement to have a lot, sign and an office for the conduct of business. The MVDA also sets out requirements for the maintenance of books and records at the registered premises. Dealers may only use the services of registered salespersons whose registrations indicate they are providing services to that dealer.
Under the MVDA, appropriately appointed inspectors have the right to inspect a dealer’s premises, to view and photocopy books and records and to make inquiries regarding any complaint received about the dealer’s conduct. A record is kept of all completed inspections and, as necessary, follow-up action is taken.
Investigation and Prosecution
OMVIC’s investigators are appointed under the Motor Vehicle Dealers Act, the Provincial Offences Act, and are also designated as Special Constables. They are empowered to conduct investigations under several relevant statutes. As a result of those investigations, investigators may lay charges under a number of provincial statutes including the Motor Vehicle Dealers Act and the Consumer Protection Act, 2002.
Investigations fall into two broad categories: unregistered activity (curbsiders), and industry conduct – which typically involve allegations of odometer tampering, falsifying records and non-disclosure of accidents.
Investigations are initiated from information received from various sources including referrals from OMVIC inspectors, consumer complaints, police and other dealers. If substantiated, they can result in prosecution, proposal for revocation, or referral to the Discipline Committee.
Investigators also provide education and support to other law enforcement agencies through presentations at training conferences and partnership in joint law enforcement projects.
OMVIC is a member of the Provincial Auto Theft Task Force and investigators are members of the International Association of Auto Theft Investigators. Joint forces operations have been conducted with the Insurance Bureau of Canada, the Ministry of Transportation’s Branding unit, Project Econo Car, Project Phantom[6] and the Durham Regional police.
Disciplinary Process
All motor vehicle dealers and salespersons are required to comply with OMVIC’s Code of Ethics and Standards of Business Practice. Alleged breaches of the Code are heard before a Discipline Panel and the panel may impose penalties. All parties can be represented by counsel at hearings and dealers are given the opportunity to submit documentation supporting their position. Following a hearing, the panel issues a formal decision which is published as a matter of record.
Recent discipline issues have focused on industry conduct, unregistered salespeople, the lack of safety certificates for leased vehicles and advertising complaints[7]. The majority of cases were settled without a hearing, and although dealers may have faced fines, most were also required to adopt a policy that requires all sales staff to be certified – a process that emphasizes education[8].
Motor Vehicle Dealers Compensation Fund
The Motor Vehicle Dealers Compensation Fund is a consumer protection fund that was introduced in 1986. It reimburses eligible consumers who have suffered a proven pecuniary or out of pocket loss related to a vehicle purchase or lease transaction. Consumers can only make a claim to the Fund if they have dealt with a registered dealer at the time of the transaction.
An independent Board of Trustees consisting of nine members from the public and industry review claims and make decisions about compensation for eligible claimants based on the MVDA and its Regulations (or its predecessor legislation). Consumer are expected to have exhausted all other legal remedies prior to making a claim against the Fund and full documentation as evidence of their claim is required.
To be eligible for consideration by the Fund’s Board of Trustees, a written claim must be submitted within two years of a registered dealer refusing or failing to pay compensation, and must be based on one of the situations described below if the transaction occurred after January 1, 2010[9]:
- The dealer has failed to satisfy a court judgement that has become final
- The dealer has failed to return a deposit to a consumer or an undelivered motor vehicle
- The dealer has failed to remit an extended warranty contract and/or payment for same to the warranty company or has not paid for a repair which would have been covered and/or refunded the warranty premium paid by the consumer
- The dealer has become bankrupt
- The dealer has been convicted of an offence related to the trade in the motor vehicle
- The dealer has seriously misrepresented the vehicle to the consumer and the consumer would be eligible for rescission of the contract
- The dealer has had its licence revoked by the Registrar and one of the reasons includes issues related to the transaction
- The dealer has failed to remit or honour the conditions of a service plan agreement
- The motor vehicle has been seized by law enforcement or lawfully by a creditor (not the consumers) and the motor vehicle will not be returned
The Motor Vehicle Dealers Compensation Fund is supported through a fee that dealers must pay when they apply for registration to the Ontario Motor Vehicle Industry Council. The maximum amount that can be paid for any one claim is $45,000 (CAD).
If a consumer's transaction happened before January 1, 2010, their claim would be judged by the previous criteria and the maximum amount they could receive has not changed from $15,000 as set in the previous Act.
When the Fund pays a claim, the consumer signs over to the Fund all rights and remedies related to the claim to which he or she is entitled. The Fund may then pursue its own legal action to recover the amount of the claim from the dealer or the dealer’s representative.
The Fund cannot compensate consumers for a loss resulting from a private sale or a transaction involving a company that is not registered under the Motor Vehicle Dealers Act. Nor can the Fund compensate a business, other dealer or other customer acting in a business relationship even if the dealer is registered under the Act and a court judgment received.
Know Your Ride
OMVIC launched Know Your Ride, a secondary school program that teaches high school students in Ontario about the dangers of buying vehicles privately, in 2007. The program was developed with input from educators and was designed to be an integral component of the Grade 10 Civics curriculum[10]. The program consists of a DVD for use in classrooms and is supported by materials for both teachers and students. These kits are made available to every high school in Ontario.
In 2008, Know Your Ride received approval from Curriculum Services Canada[11] for use in Grade 10 Civics classes.
Buy With Confidence
In October 2009, OMVIC launched[12] the Buy With Confidence campaign - a program to help consumers identify Ontario-registered dealers.
The campaign provides information about the benefits of buying through a registered dealer and highlights the problems associated with curbsiders (illegal sellers).
Vehicle-Buying Seminars
On Monday, April 26, 2010 OMVIC, along with Minister of Consumer Services Sophia Aggelonitis, announced [13] free vehicle-buying seminars for consumers starting June 2010.
These seminars will be presented in multiple languages across the Greater Toronto Area and select Ontario markets.
Consumers will be able to learn about:
- The difference between registered dealers and private sellers
- What dealers must disclose about a vehicle
- Legislation and consumer protection measures
- How to research a vehicle’s history
- What to do if you have a problem with a purchase
See also
References
- ^ Ontario Motor Vehicle Industry Council - Government of Ontario (Canada)
- ^ New Motor Vehicle Dealers Act Increases Disclosure Requirements: All-In Pricing, Vehicle History Reports and Compensation Fund
- ^ OMVIC - Registration Information
- ^ Part-time Studies at Georgian College: OntarioLearn, OMVIC, Part-time Programs, Programs/accreditations from external agencies and Apprenticeships
- ^ LAT - FAQ - What is the Licence Appeal Tribunal ("LAT") for?
- ^ CCRA: Tax Fraud Scheme Leads to 5 Year Prison Sentence
- ^ http://www.omvic.on.ca/News/Dealer_Standard_2007_April.pdf
- ^ OMVIC - Discipline Panel Decisions
- ^ OMVIC - More Information on the Motor Vehicle Dealers Compensation Fund
- ^ Marketwire News Release - November 16, 2007
- ^ http://www.curriculum.org/app/searchEval.tcl?BID5=8564&SID5=2000744&COMP5=&SELF5=&rawSearch2=Keywords&searchListType=fullrecord&lang=0&dev=&grade=G4&subject_code=all&age=all&resource_type=Classroom%20Resource&resOrigin=SR
- ^ Marketwire News Release - October 13, 2009
- ^ Ministry of Consumer Services News Release - April 26, 2010
External links
Categories:- Licensing
- Consumer rights organizations
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