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Motor Vehicle Dealing (Ontario)
Legal Guide
Ch.7 - Advertising
(20 June 2021)- General
(a) Overview
(b) Registration Details Shall be Noted in Ad, Limited Exception re Specified Media
(c) Trade Locations Allowed in Ad for Lease Finance Dealers
(d) Mandatory Specific Motor Vehicle Details in Ad re Heavy Use
(e) Ads Where Recent Model Year but Used
- Price Advertising
(a) General
(b) Price Advertising by Multiple Dealers
1. General
(a) Overview
The MVDA regulates advertising by dealers [Reg 36(1)].
(b) Registration Details Shall be Noted in the Advertisement, Limited Exception re Specified Media
Advertisements shall specify the "registered name and the business telephone number" of the dealer "in a clear, comprehensible and prominent manner" [Reg 36(2)]. However, this is excepted where the ad "indicates that [Reg 36(3)]:- it is being placed by a registered motor vehicle dealer", and
- "is a classified advertisement in a newspaper, magazine, or similar publication, is broadcast on radio or television, is displayed on a billboard or bus board or is made through any other medium that has similar practical limitations on the amount of information that can be included in the advertisement".
(c) Trade Locations Allowed in Advertisement for Lease Finance Dealers
All dealers may invite the public to deal at any addresses that they are authorized to do so in their registration [MVDA 4(2)(b)]. Additionally, 'lease finance dealers' may run ads to invite the public to trade at any of the general dealers locations that they are authorized to deal through [Reg 36(4)].
(d) Mandatory Specific Motor Vehicle Details in Advertisement re Heavy Use
Where a dealer advertises a specific motor vehicle and it was previously used in any of the following uses, then any ad must specify that use in "clear, comprehensible and prominent manner" [Reg 36(5)]:- leased on a daily basis, unless the vehicle was subsequently owned by a person who was not a dealer;
- used as a police cruiser or used to provide emergency services; or
- used as a taxi or limousine.
(e) Advertisements Where Recent Model Year but Still Used
Where the advertisement states the model year of a specific used motor vehicle, even though it is of the "current model year or the immediately previous model year", the advertisement must indicate in "a clear, comprehensible and prominent manner" that it is used [Reg 36(6)].
2. Price Advertising
(a) General
Prices in advertisements must specify "in a clear, comprehensible and prominent manner" the price total as [Reg 36(7)]:- the amount that a buyer would be required to pay for the vehicle; and
- all other charges related to the trade in the vehicle, including, if any, charges for freight, charges for inspection before delivery of the vehicle, fees, levies and taxes. If the ad states in a "clear, comprehensible and prominent manner" that PST and HST are not included then those taxes may be excluded from 'other charges' above [Reg 36(10)].
Motor vehicles advertised at a specific price must be available at that price "during the time to which the advertisement applies [Reg 36(12)]."
Where an advertisement indicates price, and supplies are limited at that price the advertisement "shall indicate, in a clear, comprehensible and prominent manner, the number of vehicles available" [Reg 36(13)].
Where extended warranties are advertised as included, an advertisement shall "indicate, in a clear, comprehensible and prominent manner the term of the warranty and the maximum individual claim limits, if any, for the warranty" [Reg 36(14)].
(b) Price Advertising by Multiple Dealers
Where an ad "indicates a price for a motor vehicle is placed jointly" by two or more dealers, but the 'other charges' amount above [eg. charges for freight, inspection before delivery, fees, levies and taxes (unless taxes excluded: Reg 36(10)): Reg 36(7)(b)] vary between the dealers, the advertisement "shall indicate, in a clear, comprehensible and prominent manner" [Reg 36(9)]:- that a purchaser may be requested to pay that amount in addition to the price indicated in the advertisement; and
- what the charge is for.
Where two or more dealers advertise the same type of motor vehicle, any price mentioned shall "state that the price for the vehicle in an actual trade may be less than the price set out in the advertisement" [Reg 38(8)].
Where an advertisement indicates that a price is placed jointly by two or more dealers, each of the dealers shall ensure that the advertisement complies with the above provisions [Reg 36(11)].
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