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Motor vehicle industry council protects the rights of consumers - Mar 01, 2008
In previous columns, I have occasionally made reference to the Ontario Motor Vehicle Industry Council (OMVIC). Today, I want to give readers some insight into this industry body and explain how it functions.
OMVIC was established in 1997 to regulate and monitor the activities of registered motor vehicle dealers in Ontario and to protect the rights of consumers.
Prior to 1997, the motor vehicle industry was regulated by the Ministry of Consumer and Commercial Relations.
The Toronto Automobile Dealers Association worked closely with the Ontario government and consumer groups to establish the guidelines that became the official policies for this body.
OMVIC is entirely self-managed and is made up of a board of directors, consisting of elected auto dealers, and consumer representatives appointed by the consumer minister.
OMVIC is a not-for-profit entity funded by 8,800 registered dealerships and 22,000 salespeople, who pay fees amounting to approximately $5 million per year. These fees go towards OMVIC's annual operational costs, including a staff of 55.
When OMVIC was first suggested, our industry received criticism from some who were suspicious that a self-managed body could effectively monitor and regulate its own industry. In light of OMVIC's success and track record over the past 11 years, those criticisms have been muted.
The ultimate aim of OMVIC is to maintain a fair and informed environment for auto dealers, dealership staff and consumers.
As part of its mandate, OMVIC is responsible for all registered dealerships and sales staff, dealer inspections and investigations, complaint handling and maintaining professional standards.
On the registration side, anyone who wants to operate a dealership or sell vehicles at a dealership is screened and must meet the requirements outlined in the Ontario Motor Vehicle Dealers Act (MVDA). These registrations must be renewed periodically.
OMVIC has the right to conduct investigations on dealerships if non-compliance issues are suspected. If a dealership or a staff member does something that contravenes the MVDA, OMVIC is permitted to take disciplinary action, including prosecution.
Consumer complaints are part of the OMVIC mandate as well. If a dispute arises between a consumer and a dealership, or between dealerships, OMVIC will step in and try to facilitate a settlement.
OMVIC promotes education programs for dealerships, and public awareness campaigns for consumers. OMVIC even has guidelines to protect consumers against misleading advertising.
The size of fine print, disclosure information, and the use of certain words and phrases in auto ads are some of the items that fall under OMVIC's scrutiny.
Fourteen years ago, as I contemplated whether to enter the retail car business, I spoke to many car dealers and industry people.
I wanted to get a feel for the strength and integrity of this industry before I made a commitment to it.
One of the contributing factors that led to my purchasing a dealership were the practices and standards that existed at the dealerships ? even before OMVIC came into being.
The dealerships that I visited in the early 1990s were clean, well-run and progressive.
Most dealerships had systems in place to address issues of full disclosure, customer complaints and public awareness. I discovered that dealerships were, and are, interested in cultivating good relationships with their customers and communities.
Not all dealerships are perfect all the time. But with OMVIC guidelines in place, and with the ongoing commitment of dealerships to abide by those guidelines, I am confident the retail car industry is doing its best to operate fairly and honestly.
To learn more about OMVIC, visit www.omvic.on.ca.
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