Act
Modernizing the Motor Vehicle Dealers Act: Proposals to Reduce Burden, Improve Regulatory Efficiency, and Enhance Consumer Protection
Regulation Number(s):
333/08 (General)
332/08 (Code of Ethics and Operation of Committees)
332/08 (Code of Ethics and Operation of Committees)
Instrument Type:
Act
Bill or Act:
Motor Vehicle Dealers Act, 2002
Summary of Proposal:
The Motor Vehicle Dealers Act, 2002 (MVDA) regulates motor vehicle dealers and salespersons and provides protections for Ontario consumers. The MVDA and its regulations are administered and enforced by the Ontario Motor Vehicle Industry Council (OMVIC).
The Ministry of Public and Business Service Delivery (ministry) is consulting on potential changes to the MVDA and its regulations that, if implemented, would reduce regulatory burden, improve OMVIC's regulatory efficiency, enhance consumer protection, and address other sector-specific issues.
The ministry is seeking feedback on the proposals and the questions posed in the attached consultation paper. These proposals include:
1. Requiring a two-day cooling-off period on all transactions before the consumer takes possession of the motor vehicle
2. Requiring OMVIC to develop an information guide for consumers and for registrants to provide a copy to consumers
3. Allowing trade outside a dealer's place of business when the consumer has initiated contact with the registrant and requested a trade outside of the place of business
4. Limiting the ability of dealers to require consumers to purchase add-on goods and services in a motor vehicle sale
5. Limiting the sale of "as-is" vehicles
6. Requiring registrants to complete mandatory continuing education courses as a condition of registration renewal
7. Requiring motor vehicle dealers to promptly pay unpaid loans on a traded-in vehicle within five business days, where the dealer has agreed to pay the outstanding amount
8. Expanding eligibility for the Motor Vehicle Dealers Compensation Fund (MVDCF)
9. Updating contract disclosures to increase the threshold for the value of repairs required for disclosure, and to simplify the Canadian Motor Vehicle Arbitration Plan (CAMVAP) disclosure requirements
10. Adding flexibility for the contact information in advertisements
11. Expanding the scope and powers of OMVIC's Discipline Committee
12. Increasing maximum fines that OMVIC's Discipline Committee may impose on registrants and applying distinct maximum fines for individuals (i.e., salespersons) and businesses
13. Prohibiting cross-appointments between OMVIC's Board of Directors and the Board of Trustees for the MVDCF
14. Updating the language in the MVDA and its regulations to capture terms that are distinct to electric vehicles
Finally, the ministry is also gathering information on various forms of unfair selling tactics experienced by consumers (e.g., drip pricing, forced financing, and penalties associated with early payment of loans).
The ministry is seeking feedback on the proposals and the questions posed in the attached consultation paper. The ministry is also interested in hearing your perspective on other changes that would enhance consumer protection in the motor vehicle sales sector, reduce burden for registered motor vehicle dealers and salespersons, and improve OMVIC's regulatory efficiency.
You may submit your comments by responding directly to the Regulatory Registry posting or by sending your comments by e-mail to MVDA@ontario.ca no later than May 21, 2024.
The Ministry of Public and Business Service Delivery (ministry) is consulting on potential changes to the MVDA and its regulations that, if implemented, would reduce regulatory burden, improve OMVIC's regulatory efficiency, enhance consumer protection, and address other sector-specific issues.
The ministry is seeking feedback on the proposals and the questions posed in the attached consultation paper. These proposals include:
1. Requiring a two-day cooling-off period on all transactions before the consumer takes possession of the motor vehicle
2. Requiring OMVIC to develop an information guide for consumers and for registrants to provide a copy to consumers
3. Allowing trade outside a dealer's place of business when the consumer has initiated contact with the registrant and requested a trade outside of the place of business
4. Limiting the ability of dealers to require consumers to purchase add-on goods and services in a motor vehicle sale
5. Limiting the sale of "as-is" vehicles
6. Requiring registrants to complete mandatory continuing education courses as a condition of registration renewal
7. Requiring motor vehicle dealers to promptly pay unpaid loans on a traded-in vehicle within five business days, where the dealer has agreed to pay the outstanding amount
8. Expanding eligibility for the Motor Vehicle Dealers Compensation Fund (MVDCF)
9. Updating contract disclosures to increase the threshold for the value of repairs required for disclosure, and to simplify the Canadian Motor Vehicle Arbitration Plan (CAMVAP) disclosure requirements
10. Adding flexibility for the contact information in advertisements
11. Expanding the scope and powers of OMVIC's Discipline Committee
12. Increasing maximum fines that OMVIC's Discipline Committee may impose on registrants and applying distinct maximum fines for individuals (i.e., salespersons) and businesses
13. Prohibiting cross-appointments between OMVIC's Board of Directors and the Board of Trustees for the MVDCF
14. Updating the language in the MVDA and its regulations to capture terms that are distinct to electric vehicles
Finally, the ministry is also gathering information on various forms of unfair selling tactics experienced by consumers (e.g., drip pricing, forced financing, and penalties associated with early payment of loans).
The ministry is seeking feedback on the proposals and the questions posed in the attached consultation paper. The ministry is also interested in hearing your perspective on other changes that would enhance consumer protection in the motor vehicle sales sector, reduce burden for registered motor vehicle dealers and salespersons, and improve OMVIC's regulatory efficiency.
You may submit your comments by responding directly to the Regulatory Registry posting or by sending your comments by e-mail to MVDA@ontario.ca no later than May 21, 2024.
Analysis of Regulatory Impact:
The Ministry of Public and Business Service Delivery is conducting a Regulatory Impact Analysis.
The ministry anticipates that some proposed changes may add costs for registered motor vehicle dealers; however, some are expected to reduce burden for motor vehicle dealers or to be cost neutral with the additional benefits of enhanced compliance and improved regulatory efficiency and consumer protection in the motor vehicle sales sector.
The ministry is seeking feedback from stakeholders about the cost impacts and cost savings associated with the proposed changes.
The ministry anticipates that some proposed changes may add costs for registered motor vehicle dealers; however, some are expected to reduce burden for motor vehicle dealers or to be cost neutral with the additional benefits of enhanced compliance and improved regulatory efficiency and consumer protection in the motor vehicle sales sector.
The ministry is seeking feedback from stakeholders about the cost impacts and cost savings associated with the proposed changes.
Further Information:
Modernizing the Motor Vehicle Dealers Act, 2002
Proposal Number:
24-MPBSD004
Posting Date:
April 2, 2024
Comments Due Date:
May 21, 2024
Contact Address:
Ministry of Public and Business Service Delivery
6th Floor | 56 Wellesley St. W.
Toronto, ON M7A 1C1
6th Floor | 56 Wellesley St. W.
Toronto, ON M7A 1C1