Ontario Motor Vehicle Industry Council

OMVIC (Ontario Motor Vehicle Industry Council) is a council that regulates motor vehicle sales, administers and enforces the Motor Vehicle Dealers Act on behalf of the Ontario Ministry of Government and Consumer Services (MGCS) in Ontario. OMVIC's mandate is to maintain a fair and informed marketplace, by protecting the rights of consumers while enhancing the professionalism of the industry, and ensuring fair, honest, and open competition for registered motor vehicle dealers. ^[1]

OMVIC has been embroiled in several controversies in the past few years, related to the integrity of its leadership and its willingness to help consumers.

History

Prior to 1997, Ontario's motor vehicle dealer industry was regulated by the Ministry of Consumer and Commercial Relations (now the Ministry of Government and Consumer Services). OMVIC's creation on January 7, 1997, marked the first regulated business sector to move to self-management.

OMVIC's authority for day-to-day administration comes from the Safety and Consumer Statutes Administration Act. The Safety and Consumer Statutes Administration Act (Bill 54) was proclaimed on July 22, 1996. This Act, as provided for in Bill 54, created "administrative authorities"—non-profit corporations independent of both industry associations and the government—that deliver services and programs for different industries regulated by the ministry.

Services

As the regulator of motor vehicle sales in Ontario, OMVIC's mandate is to maintain a fair and informed marketplace by protecting the rights of consumers, enhancing industry professionalism, and ensuring fair, honest, and open competition for registered motor vehicle dealers.

This is achieved by:

• Maintaining strict dealer and salesperson registration requirements
• Inspecting all Ontario motor vehicle dealers (new and used)
• Providing free complaint handling to consumers
• Developing and delivering consumer and dealer education and awareness programs
• Investigating and prosecuting industry non-compliance and illegal sales (curbside)

OMVIC’s Objectives

OMVIC is focused on achieving:

• Consumer protection through the pursuit of those who would prey on an unwary public
• increased consumer confidence through compliance activities and complaint handling
• Consumer awareness through the dissemination of information concerning consumer rights (public information and awareness programs)
• Dealer professionalism through certification programs for new dealers and salespersons

Registration

Registration with OMVIC is mandatory for all automotive dealers (new or used) and salespeople in Ontario.

In order to become registered as a dealer or salesperson, each applicant is screened to ensure they meet the requirements of the Motor Vehicle Dealers Act (MVDA). OMVIC conducts a number of background checks on all applicants, and each applicant is required to provide a Canada-wide criminal record search at the time of application. These processes help ensure registered dealers and salespeople will conduct themselves with honesty and integrity and in a financially responsible manner—all requirements of the MVDA.

The minimum fine for acting as an unregistered dealer (curbsider) is $2,500.

Education

Registered dealers and salespeople who successfully pass the Certification Course through Georgian College's Automotive Business School of Canada and who then become registered with OMVIC are entitled to use the designation C.A.L.E., Certified in Automotive Law and Ethics.

Using the C.A.L.E. designation builds trust, strengthens credibility, and demonstrates to consumers that dealers and salespeople are proven professionals who have met Georgian College and OMVIC training standards.

Complaints and Inquiries

OMVIC's Complaints and Inquiries Team handles inquiries and complaints from both consumers and dealers regarding the conduct of OMVIC-registered dealers.

Remember: These services are only available when consumers purchase from an OMVIC-registered dealer. OMVIC has no jurisdiction over private sales, manufacturers, or independent repair facilities.

OMVIC cannot force or compel a dealer to give money back or offer compensation. OMVIC is not the court, and only a court can impose a solution.

Enforcement

Inspections

Dealer inspections are conducted to ensure ongoing compliance with the MVDA.

OMVIC inspectors are based regionally to provide an inspection program for the entire province.

If OMVIC receives a complaint from the public about a dealer, OMVIC's Complaints and Inquiries Team may attempt to resolve the issue over the telephone. Alternatively, an OMVIC inspector may perform an inspection and discuss the complaint with the dealer.

Inspectors have the right to:

• Access and inspect the dealer's premises, vehicles, books, and records,
• Remove records to make photocopies, and,
• Make inquiries regarding any complaint about the dealer's conduct.

The dealer must assist the inspector when asked, such as by producing a document or record or helping the inspector use the dealer's own data storage, processing, or retrieval device.

Criticism

In 2021, a value for money audit by the Auditor General of Ontario found OMVIC is “asleep at the wheel” when it came to meeting its mandate of protecting consumers.^[2]

The report found that OMVIC had failed to act on about 50% of the time when consumers filed complaints against dealers between 2016 and 2020, leaving consumers to fend for themselves in civil court.

The report found OMVIC did not inspect 60% of dealers within its target of three years. In a five period, OMVIC simply closed inspection files in 77% of inspections where it was found that laws were broken instead of taking enforcement action.

Former OMVIC board member Mohammed Bouchama told the Toronto Star that OMVIC “is going backwards” and said the board is putting dealers’ interests before consumers.

Bouchama sat on OMVIC’s consumer advocacy committee for years, and recently spent two years on its board of directors until he was let go for “asking too many questions.”

Bouchama said a typical consumer complaint might involve a transmission that fails shortly after the used vehicle is purchased, and the dealer refuses to fix it under the warranty that was sold with the car. OMVIC is supposed to act on behalf of the car buyer, but frequently nothing is done.

“There’s no enforcement. Dealers are breaking the law every day,” Bouchama said. “The disciplinary committee met 35 times for 8,000 dealers last year. I could point to 200 transgressions online right now.”

In his comments to the media, he pointed to the composition of OMVIC’s board as the underlying problem. Nine of the 12 members are automobile dealers, while a tenth, Rod Jackson, is the son of a car dealer, Bouchama said. Another member is a political appointment by the Conservatives, while the Chair is a retired public servant.

“Nobody on the present board rightfully can be called pro-consumer,” he said. “They also got rid of staff who cared about consumer protection.” ^[3]

Even though OMVIC increased its annual consumer awareness spending by 60% over five years to nearly $2 million, 70% of Ontarians surveyed remained unaware of OMVIC and its role.

Since 2015, OMVIC has doubled its vehicle transaction fee from $5 to $10. This fee is paid by the consumers on each vehicle they buy, and that is how OMVIC is funded. The audit found OMVIC used this money to shore up large budget surpluses instead of allocating it for consumer protection.

Meanwhile, OMVIC’s board members claimed over $523,000 in meal expenses from 2016-2020. Following one board meeting in October 2018, 11 board members and five OMVIC employees spent $2,700 on dinner at a Niagara winery at OMVIC’s expense. Nearly 40% of this bill was for alcohol. ^[4]

See also

• Ministry of Government and Consumer Services (Ontario)

References

1. OMVIC (Ontario Motor Vehicle Industry Council) – Official Website
2. "Index of /en/content/annualreports/arreports/en21". www.auditor.on.ca. Retrieved 2023-02-24.
3. "Ontario's Auditor General finds OMVIC underperforms in protecting car buyers". The Toronto Star. 2021-12-10. ISSN 0319-0781. Retrieved 2022-05-12.
4. "Office of the Auditor General of Ontario". www.auditor.on.ca. Retrieved 2022-05-12.