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.on.ca

Winter 2013

The Dealer Standardis published by the Ontario Motor Vehicle Industry Council789 Don Mills Road, Ste. 800 Toronto, ON M3C 1T5T: 416-226-4500F: 416-226-3208Toll Free: 1-800-943-6002Executive Director: Carl ComptonWriter: Terry O’Keefe

In this issue:• 85 Charged in

Advertising Sweep

• Another Curbsider Gets Jail Time

• New Seminar Available to Dealers

• New Windshield Sale Signs Assist with Compliance

• From the Discipline Files

• Registration Reminder

85 Charged in Advertising Sweep

Read more inside

BREAKING

NEWSWhat started out as a curbsider sweep through Kijiji and AutoTrader ads instead netted 85 dealers and salespersons allegedly posing as private sellers.

Many of those charged advertised vehicles “for sale by owner” and did not identify themselves as registered dealers. Others did list the vehicle as “for sale by dealer” but did not include the dealership name – both are contraventions of the Motor Vehicle Dealers Act (MVDA), which requires dealers to include the dealership name and registered phone number in all advertisements.

CHARGES LAID

FOR FAILING TO IDENTIFY AS A DEALER

FOR FAILING TO MAINTAIN RECORDS

FOR FAILING TO TRANSFER OWNERSHIP

8985

31

PRIVATE SELLEROR DEALERSHIP

FOR SALE

Dealer Fined $12,500 for Non-compliant Advertising

New Seminar Available to Dealers

New Windshield Sale Signs Available to Assist with Compliance

When selling a used car, dealers are required to disclose:

if a vehicle was involved in a collision that resulted in $3,312 damage

if a vehicle was registered in Alberta five years ago

if a vehicle’s ABS system isn’t working (but the brakes do pass safety inspection)

if a vehicle’s A/C system isn’t cooling properly

a & c but not b & d

a, b &c but not d

Okay, it was a trick question – by law, dealers must disclose “all of the above,” and yet OMVIC complaint handlers routinely hear from consumers who have not been made fully aware of the history or condition of the vehicles they were sold.

The MVDA requires dealers to make a full disclosure of 22 specific details related to the past-use, history and condition of each vehicle sold or leased as well as the more general disclosure of material fact. So, do you know all of the required disclosures? If not, OMVIC’s new Disclosure Seminar may help. This seminar, like the advertising seminar launched in 2012, is available from your OMVIC Inspector, or by contacting the Communications and Education team (omvic@omvic.on.ca ) – and there’s no charge.

All right, one more question: if a dealer provides disclosure verbally, and has a witness to the conversation, does that disclosure meet the requirements of the MVDA?

NO. Disclosure must also be provided in writing on the contract in a clear, comprehensible and prominent manner.

OMVIC has created “windshield signs” dealers can use to advertise the price of their vehicles. There are signs for all-in prices, as-is and unfit sales, and finance offers; and each has the

required disclosure statement in clear, comprehensible and prominent language.

OMVIC made them available to help dealers comply with MVDA advertising regulations. “Dealers must remember that an advertisement is any inducement to buy or lease – that includes signage on the vehicle itself,” said Terry O’Keefe, OMVIC Manager of Communications and Education. “We encourage dealers to download and use the signs; they’re free, they help ensure compliance and they provide transparency and build trust with customers.”

The signs can be downloaded from OMVIC’s website, omvic.on.ca.

f

e

d

c

b

a

PAGe 2

ROBeRT eARL Hamilton

WALID KeNOUN Whitby

NADIR NASSeRI Markham

1444500 ONTARIO INC. O/A MANVILLe AUTO RePAIR Toronto

JAROUDI, IMAD O/A SHOP N TRAD AUTO SeRVICe Ottawa

WALSH’S AUTO SeRVICe LIMITeD O/A eTOBICOKe’S FINeST AUTO SALeS Toronto

JACKSON CHRISTOPHeR Milton

PASZKIeWICZ, CZeSLAW O/A C & M MAGIC AUTO Ottawa

DOWDALL, GReGORY O/A AUTO 4 YOU Perth

CHAMeSeL-DIN HASSAN O/A SeLeCT AUTO Ottawa

1745195 ONTARIO LIMITeD O/A SUPeR GAS AND eQUIPMeNT Kingston

BRAZeAU MARC e O/A MARC AUTO CeNTRe Clarence-Rockland

JIA HONGJUN ZHAO GUOLING O/A HORNGYM AUTOMOTIVe SeRVICe Windsor

STYPSIANOS JOHN I O/A YANNIS AUTOS Hamilton

RAMI M SAAD O/A GALAXY AUTO SALeS Scarborough

PReCISION AUTO SALeS LTD. London

1803952 ONTARIO INC. O/A CITY AUTOMOTIVe Toronto

HALe MeLANIe O/A TRIPPS AUTO ReCYCLeRS Peterborough

R K AUTO CeNTRe (CANADA) INC. Toronto

CRUISIN AUTO SALeS BROCKVILLe LTD. O/A CRUISIN AUTO SALeS Mallorytown

eMIL’S AUTO BODY LIMITeD Kitchener

729752 ONTARIO INC O/A COLLINGWOOD AUTO eXCHANGe Collingwood

LeSIeCZKO,BOGDAN O/A CARBANIK CAR SALeS Brantford

HAMAD GULZAR O/A ASRA AUTO Scarborough

WORLD’S FINeST CARS CORPORATION Richmond Hill

KK MOTORS CANADA INC. Toronto

eVON’S AUTO CLINIC INC. Toronto

FeICHT RAYMOND O/A AYR AUTO SALeS Wilmot

ORV’S COLLISION CeNTRe INC. London

MIKe GALAZKA SeRVICe CeNTRe LTD. Ottawa

PRISTINe MOTORS INC. London

DILLON AUTO CeNTRe INC. Windsor

MUHAMMAD YOUNUS GHORI O/A FRIeNDS AUTO AND eNGINeeRING Caledon

WOODSTOCK CHRYSLeR SALeS (1970) LTD Woodstock

ANTHONY PeTeROUS VAN BOMMeL O/A TONY VAN BOMMeL USeD CARS Ilderton

BAROUD RONY O/A RONY’S AUTO SALeS Ottawa

RACHAD eL-HOUSSAMI Windsor

BRIAN MCFARLANe London

DeSMOND LAFFeRTY St. Catharines

SHAPOOR GHARIBZADA Toronto

eVON BROCKeTT N/A

LARRY ROMPHF Ilderton

DeNNIS MCARA Waterloo

HANS SCHINKeR Grey Highlands

DANNY PASNYK Kitchener

KHOSRO MALeKJAHANI Toronto

JOHN De OLIVeIRA Brampton

KAJeNDRAN KASIPPILLAI Mississauga

HAJI AHMAD Toronto

ALI KAZMI Keswick

TeRRY MCGILL Welland

Dealer Advertising MUST Meet the Requirements Outlined in the MVDADealers may substitute the word “DeALeR” for their full dealership name only when there are space or time constraints – and such constraints do not exist on Kijiji or in AutoTrader. “Over the past two years, OMVIC has published reminders in bulletins and newsletters that dealer ads must include the dealership name and phone number,” stated Carey Smith, OMVIC Director of Investigations. “Failing to do so denies consumers the transparency the Act requires and it’s unfair to all those dealers who comply with the requirements.”

CHARGES LAID

FOR FAILING TO IDENTIFY AS A DEALER

FOR FAILING TO MAINTAIN RECORDS

FOR FAILING TO TRANSFER OWNERSHIP

8985

31

PRIVATE SELLEROR DEALERSHIP

FOR SALE

More on OMVIC’s advertising sweep...

Investigation Results – Charged Are:

Continued on the next page

PAGe 3

Dealer Fined $12,500 for Non-compliant All-In Price AdvertisingFor the second time in 13 months, Cowan Buick GMC Limited was convicted for advertising a vehicle price that was not an all-in price, in contravention of the MVDA.

In July 2012, OMVIC investigators observed used vehicle advertisements placed by Cowan in a local Clarington newspaper. The advertisements made no mention that taxes were not included in the advertised price as is required by the MVDA. Posing as a consumer, an investigator attended the dealership to enquire if the advertised price of $29,995 for a 2010 Acadia was the final drive-away price. A salesperson told the investigator there were other fees to be added including: $179 administration fee + $179 etching fee + $5 OMVIC fee + $3,946.54 taxes – making the actual price $34,304.54. A week later and again posing as a consumer, an investigator returned with another advertisement and, as before, additional fees (admin, etching, OMVIC, gas) and taxes were added to the advertised price.

The dealer was charged, pled guilty and was fined $12,500 (includes 25% Victim Fine Surcharge).

All Dealers are again reminded of the following advertising requirements:

ALL-IN PRICING If a dealer ad includes a price for a vehicle, that price must include ALL charges related to the sale of the vehicle. This includes:

• freight

• inspection charges

• safety inspection and emission testing charges (unless vehicle is advertised with required “unfit” or “as-is” statement)

• administration fees, other fees, levies and HST

$No Hidden Fees or Charges

+ HST & Licensing

18,500All-In Price

Note – Dealers do not have to include HST (or licensing) in the advertised price so long as the ad indicates in a clear, comprehensible and prominent manner that HST and licensing are not included.

IRSHAD, NAeeM & QUReSHI, ZAFAR O/A BUY RIGHT AUTO Toronto

KAVANAUGH GARNeT O/A CLASS “A” DeALS Windsor

SOUSA KeVIN O/A AUTOMAX London

659676 ONTARIO LIMITeD O/A KIPLING CAR AND TRUCK SeRVICe Toronto

LAFFeRTY eARL J. O/A eARL & SON CUSTOM AUTO BODY St. Catharines

MAJANO JUAN O/A FRIeNDLY AUTO & MORe London

JAI SINGH O/A J AUTO SALeS & SeRVICe Toronto

2032811 ONTARIO INC O/A HARRAD AUTO SeRVICeS Brampton

RAMA AUTO INC. Toronto

545665 ONTARIO LIMITeD O/A CONeSTOGA CAR SALeS Kitchener

2243693 ONTARIO LIMITeD O/A SeAWAY MOTORS Brockville

AKHI eHSAN O/A TeAM AUTO SALe London

TRANSIT CARAVANe & AUTOS LTee Plantagenet

ZHANG DAXIN O/A UCARS KeNNeDY Toronto

FALLS CHeVROLeT CADILLAC BUICK GMC LTD. Niagara Falls

DRAGOMIeROW LODMIeL NIKOLOW O/A CARS FOR YOU Windsor

HAJAK IVAN O/A HAYAK’S AUTO BODY Cambridge

RIVeRVIeW SeRVICe CeNTRe LIMITeD O/A CRAWFORD MOTORS Chatham

MATHeW JOHN O/A ROSH DISTRIBUTION Scarborough

R.S CAR SALeS LTD. Mississauga

ADAMS NICK O/A KARS R US Mississauga

CHAUDHRY, BABAR O/A CARS DOMe Mississauga

2047868 ONTARIO LTD O/A CARS R US London

2174943 ONTARIO INC. O/A I DRIVe AUTO SALeS Whitby

DIB,HOUSSAM O/A A & H AUTOMOTIVe TRADING Oshawa

BeST AUTOBODY & SeRVICe INC. O/A BeST AUTO SALe Toronto

OUTRAM, KeITH O/A UNIQUe RIDeS AUTO SALeS Mississauga

LALLY SALeS AND SeRVICe LTD. O/A LALLY FORD SALeS Tilbury

BILLA CAR & TRUCK SALeS INC Brampton

COLLIeR MICHAeL & SHePPARD BARBARA O/A B AND M SALeS Mount Brydges

eXCLUSIVe FINe CARS INC. North York

B & e CUSTOM INC. Smithville

PAGe 4

.on.ca

$18,000 Discipline Fine for Failing to Disclose Unfit Status

Kamyar Agahi, operating as Prestige Carline,

has been ordered to pay an $18,000 fine

after the dealer’s advertising was found in

contravention of the Code of Ethics. In early

2012, the dealer placed numerous advertisements

that did not properly disclose vehicles were

being sold “unfit.” The dealer was reminded

of the requirement to include the proper

unfit disclosure statement in advertisements.

Later in 2012, the dealer placed a further

29 advertisements for unfit vehicles that also

lacked the required disclosure.

Dealers are once again reminded of the following advertising requirements:

AS-IS – If an ad includes a price for a vehicle being sold as-is, it is NOT sufficient to simply state the vehicle is being sold as-is. The ad must include in a clear, comprehensible and prominent manner the following statement:

“This vehicle is being sold “as-is,” unfit, not e-tested and is not represented as being in road worthy condition, mechanically sound or maintained at any guaranteed level of quality. The vehicle may not be fit for use as a means of transportation and may require substantial repairs at the purchaser’s expense. It may not be possible to register the vehicle to be driven in its current condition.”

UNFIT – If an ad includes a price for a vehicle that is not certified and/or e-tested, the ad must state in a clear, comprehensible and prominent manner:

“This vehicle is not drivable, not certified and not e-tested.”

If a dealer intends to offer certification and e-testing for a vehicle advertised as unfit, the following statement must also be included in a clear, comprehensible and prominent manner:

“Certification and e-testing are available for $XXX.”

The exact fee must be disclosed in the aforementioned statement. Certification and e-testing cannot be mandatory charges. Vehicles advertised unfit may not be sold at or above the advertised price using the as-is clause on the bill of sale.

Note – If neither the AS-IS nor the UNFIT statement is used, it is assumed the advertised price includes the cost of the safety standards certificate and emissions test.

Dealer Fails to Comply with Discipline Decision: Fined Additional $3,000 – In 2012, Erinwood Ford Sales Inc. and David Raymond were found in breach of the Code of Ethics for retaining an unregistered salesperson; failing to provide written disclosure of a vehicle’s accident history; and failing to disclose a former daily rental history in an advertisement. At that time the dealer was fined $6,000 and agreed “all current and future managers in positions of authority over sales…will complete the current OMVIC Certification Course” within 90 days. Despite a reminder and extension, the dealer failed to meet the requirement to have managers complete the Certification Course, which led to another discipline proceeding where the dealer was found in breach of section 9 of the Code of Ethics that states “a registrant shall not engage in any act or omission that, having regard to all the circumstances, would reasonably be regarded as disgraceful, dishonourable, unprofessional or unbecoming of a registrant.” The dealer was fined a further $3,000. The managers have now completed the course.

“ The $18,000 fine levied in this case should make it clear OMVIC intends to enforce the MVDA and Code of ethics vigorously,” said Laura Halbert, OMVIC Director of Compliance. “Dealers who fail to abide by the rules don’t provide transparency to consumers and seek an unfair advantage over the vast majority of dealers who comply. That is simply unacceptable.”

Return undeliverable Canadian addresses to:

789 Don Mills Road, Ste. 800Toronto, ON M3C 1T5

Publication Mail Agreement #40021863

The Dealer Standard

Evidence presented at sentencing showed Campbell had been convicted twice previously for curbsiding − in 2001 and 2004. The fines imposed for those convictions were never paid. In passing sentence, His Worship Delano Europa agreed with the prosecution’s submission that incarceration was

warranted in light of Campbell’s failure to pay past fines and the aggravating factor that the accident history of the vehicles sold was not disclosed to the buyers, one of whom was a driver’s education instructor who told Campbell the vehicle would be used by his students.

Much of this issue of The Dealer Standard dealt with instances of non-compliance and the resulting enforcement, but OMVIC recognizes dealers and salespeople generally strive to provide superior service and products to their customers. So, in keeping with that spirit, we wanted to share the following video – while the author may refer to car “salesmen,” we know the sentiments expressed apply to all car salespeople. So, here’s why “the universe gave us car salesmen.”

Another Curbsider Gets Jail TimeAndre N. Campbell of Mississauga was sentenced to 32 days in jail after being convicted on 16 counts of curbsiding.

“This sentence sends an important message to curbsiders,” stated OMVIC Director of Investigations Carey Smith. “Retail automotive sales is a regulated industry in Ontario, and these regulations exist to ensure a fair, safe and informed marketplace. OMVIC’s mandate is to ensure persons acting as dealers meet the requirements set out by law.”

http://youtu.be/PAACjJ20-G0

A Closing Thought