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Mississauga Dealer Fined for Breaching Disclosure Requirements

January 8, 2015
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TORONTO, Jan. 8, 2015 /CNW/ – A Mississauga used car dealer has been fined $7,000 for breaching OMVIC’s Code of Ethics. Emmanuel Ntiri o/a Edlavi Motors failed to disclose accident damage repairs greater than $3,000, contrary to Ontario’s Motor Vehicle Dealers Act (MVDA).

In an agreed statement of facts presented to OMVIC’s Discipline Committee the dealer acknowledged selling four vehicles in 2013 without providing written disclosure to the purchasers that the vehicles had been in collisions. “The MVDA makes written disclosures mandatory in order to provide transparency to consumers and to create a level playing field for dealers,” stated OMVIC Director of Communications Terry O’Keefe. “This failure to provide written disclosure to customers is completely unacceptable and why the dealer was disciplined.”

In rendering its decision the Discipline Committee also ordered Ntiri to successfully complete the OMVIC Certification Course.

Consumer Education = Consumer Protection. 

The MVDA requires OMVIC-Registered Dealers to provide written disclosures related to a vehicle’s past-use, history and condition including:

  • Collision/incident repairs in excess of $3,000
  • Previous use as a taxi, limo, police/emergency service vehicle and in some instances previous use as a daily rental
  • Branding (salvage/rebuilt/irreparable)
  • Distance the vehicle has travelled (if not known there are mandatory disclosure statements to be used)
  • Needed repairs to major components including, engine, transmission, computer, air conditioning

In some instances failing to make a specified disclosure can automatically trigger a customer’s rights to rescind (cancel) the contract within 90 days of delivery.

These protections are only available to consumers who purchase from an OMVIC-Registered Dealer; consumers who choose to buy privately are not protected by OMVIC or the MVDA and cannot make a claim to the Motor Vehicle Dealers Compensation Fund. According to O’Keefe “The vast majority of registered dealers provide excellent products and service to their customers. In those rare instances when dealers fail to comply, the Act sets out significant and effective penalties.” These can include:

  • Fines up to $25,000 for breaching the Code of Ethics
  • Fines up to $50,000 and/or up to two years less a day imprisonment for individuals convicted of breaching the MVDA
  • Fines up to $250,000 for businesses convicted of breaching the MVDA
  • Issuance of a Proposal to Revoke the individual’s or dealer’s licence (registration)

For more information about the 22 required disclosures click here. To learn more about rescission (contract cancellation) click here.

About OMVIC

OMVIC (Ontario Motor Vehicle Industry Council) administers and enforces the Motor Vehicle Dealers Act (MVDA) on behalf of the Ministry of Government and Consumer Services. OMVIC maintains a fair and informed vehicle sales marketplace by regulating dealers and salespersons, regularly inspecting Ontario’s 8,000 dealerships and 25,000 salespeople, maintaining a complaint line for consumers and conducting investigations and prosecutions of industry misconduct and illegal sales (curbsiding). OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of its Board of Trustees.

SOURCE Ontario Motor Vehicle Industry Council (OMVIC)

Image with caption: “Ontario Motor Vehicle Industry Council (OMVIC) (CNW Group/Ontario Motor Vehicle Industry Council (OMVIC))”. Image available at: http://photos.newswire.ca/images/download/20150108_C6900_PHOTO_EN_10022.jpg

Article source: http://ca.finance.yahoo.com/news/mississauga-dealer-fined-breaching-disclosure-140000259.html

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