volume 4, 2016
Advertising course now online Industry has asked for access to the advertising module from the Salesperson Fair Trading Act Course and AMVIC is now pleased to offer module four: advertising, at no cost. The module and free practice quiz are now accessible 24/7 through AMVIC’s website at amvic.org/advertising-course. Are you the owner of an automotive business, in charge of all marketing and advertising efforts, or are a salesperson who wants a refresher on the advertising laws that apply to Alberta’s automotive businesses? The advertising course covers the laws and regulations that apply to automotive advertisements and will help you improve compliance with advertising laws. Go to amvic.org/advertising-course to view the advertising course and test your knowledge with the free practice quiz.
The module was a new addition to the mandatory Salesperson Fair Trading Act course when the course moved online in 2014. It is a vital addition to the course and covers: • The laws and regulations that apply specifically to automotive advertisements • All-in pricing • What must be included in an ad that offers credit • Examples of compliant ads • Real life scenarios demonstrating how the advertising laws apply • …and much more!
Test your knowledge: It is fair advertising to offer a guaranteed trade-in allowance for any vehicle regardless of make, year or condition. a) True b) False Answer page 4
This publication is intended to provide general information only and is not a substitute for legal advice.
Advertising and social media Did you know...
Automotive advertising laws apply to all advertising, including those on social media. le:
Glimmer Auto has a 2016 Road Kick XYZ in royal blue available for $23,500 + GST. This baby will sell fast, so call or text me at 555555-5555 asap for a test drive! Stock number: 12AB34 Glimmer Auto is an AMVIC-licensed business.
Why Joe’s ad complies with advertising laws: In the above example, Joe is advertising a vehicle on behalf of a licensed business on his personal account. His ad complies with Alberta’s advertising laws because:
► Additional advertising resources including a guide to the laws and regulations that apply to automotive advertisements in Alberta can be found at: amvic.
• The vehicle being advertised is for sale through an automotive business licensed for retail sales. • The ad clearly indicates, in a conspicuous manner, the name of the business and that the business is AMVIC-licensed. • Joe Sales is a registered salesperson that is authorized to act on behalf of the licensed automotive business identified in the ad. Automotive advertisements must clearly indicate in a conspicuous manner the name or trade name of the business operator as set out in the AMVIC licence and that the business is AMVIC-licensed (Automotive Business Regulation, section 11(1)(a)(b)). Remember, anyone who solicits, negotiates or concludes a sale on behalf of an automotive business must be a registered salesperson and
authorized by the business to act on its behalf.
• The ad is for a specific vehicle, so it must include the stock number as being available for sale at the time the ad is placed. (Automotive Business Regulation, section 11(2) (m)).
• It’s up to the supplier whether or not to list the price. But, if the price is listed, it must be for total cost of vehicle including all fees and charges with the exception of the GST. (Automotive Business Regulation, section 11(2)(l)).
• If the ad was offering credit for a specific vehicle, the ad must also include the all-in price. In addition, if the ad offers credit and states the interest rate or amount of payment, the ad must also state the APR and term. (Cost of Credit Disclosure Regulation, section 6).
Are you an advertising expert? Test your knowledge with AMVIC’s social media advertising quiz and see how you rank
Have an idea or topic you would like to learn more about? Submit it to firstname.lastname@example.org 2
Service and Repair
Did you know AMVIC offers a Service and Repair Course? AMVIC has developed a new online course specifically for people who work in service and repair. The voluntary course is intended for service writers, autobody appraisers and anyone who deals directly with the public and takes direction as to a repair. The course has four lessons, or modules, that cover the provincial laws that specifically apply to the service and repair industry. You get to work through real life scenarios and the laws that apply. The course also includes recommendations for best business practices and covers advertising regulations.
Learn more about the course and how to register!
• Approximately one hour to complete • Course fee: $40 • Includes practice questions and quizzes
Be proud of your licence and registration and let your customers know Some of your customers may not be aware that by choosing your business they have already made a positive first step. Let your customers know about the benefits of choosing AMVIClicensed businesses:
Use it as a selling point • Salespeople employed by your business have successfully passed the Salesperson Fair Trading Act Course. This means they are fully aware of Alberta’s automotive consumer protection laws and regulations. • Encourage your service and repair employees to take AMVIC’s new Service and Repair Course. Let customers know you voluntarily choose to educate yourself on the consumer protection laws that apply to automotive service and repair and display the completion certificate.
Explain the consumer compensation fund AMVIC maintains a Compensation Fund for consumers who have suffered a loss from an AMVIC-licensed business after it is no longer in operation or unable to compensate the consumer. Only transactions through licensed automotive businesses are eligible for compensation from the fund.
Explain the risks of curbers and backyard mechanics • Unlicenced, illegal businesses are not committed to complying with the laws that protect Alberta automotive consumers. • Curbers often sell damaged, stolen or odometertampered vehicles. • Backyard mechanics may not have the required training and certification to perform repairs, putting consumer’s safety at risk. 3
AMVIC connects with municipal leaders AMVIC had the opportunity to meet Alberta’s municipal decision makers during the Alberta Urban Municipalities Association’s 2016 convention and trade show held in Edmonton in October. The AMVIC booth featured a giant prize wheel with true or false questions about AMVIC and how AMVIC works with municipalities. Mayors, councillors and administrative employees from municipalities, towns and villages across Alberta stopped by the booth to ask questions and learn more about Alberta’s automotive regulator. AMVIC works closely with municipalities to ensure proper licensing requirements are met and assists municipalities in cracking down on curbers and backyard mechanics.
Test your knowledge-ANSWER: b) False Section 11(2)(k) of the Automotive Business Regulation states that: “A business operator must ensure that every advertisement for an automotive business that promotes the use or purchase of goods or services does not offer a guaranteed tradein allowance for any vehicle regardless of make, year or condition.”
Above: Michael Nguyen, communications assistant and Devar Dahl, councillor from the Town of Magrath, wait for the spin wheel to land on a true or false question. Top right: Lynette MacLeod, manager of communications and education, explains to Jacy Rapke, councillor from the Town of High Level, how AMVIC works with municipalities.
Visit www.amvic.org/ advertising-course to take the advertising course and practice quiz for free!
Advantages of being an AMVIC-licensed business • Allows you to legally conduct automotive business in Alberta. • You are provided with access to education courses and other
• • • •
learning resources to help ensure you are fully aware of and understand the Fair Trading Act and the requirements that must be met when dealing with consumers. Consumers have more trust and confidence when dealing with you. Consumers who buy from AMVIC-licensed dealers may be eligible to make a claim under AMVIC’s compensation fund. AMVIC provides information on the laws and regulations including examples of how they apply to real life scenarios in the form of e-bulletins and the IMPACT newsletter. It gives the industry, including your business, a better reputation.
• You contribute to a fair marketplace for • • • •
consumers. AMVIC helps to create a level playing field for industry as a whole by enforcing laws. You have access to AMVIC inspections which include recommendations for best practices to assist you to be compliant. AMVIC conducts criminal record checks on all salespeople and business applicants to protect licensees and consumers. You and your customers have access to professional complaint handling including alternate dispute resolution and investigations. 4