DID YOU KNOW THAT ALL-IN-PRICE ADVERTISING IS THE LAW IN ONTARIO?

ALL-IN-PRICE ADVERTISING means that when OMVIC-registered dealers advertise a vehicle for sale, the price must include all fees and charges they intend to collect from consumers. The only fees that can be included outside of the advertised price are HST and the total licensing cost. This practice is called all-in-price advertising, and it’s been the law in Ontario since 2010.

All-in-price advertising protects consumers from having to pay more than what they can afford and helps dealers in maintaining a level playing field in the retail advertising space. OMVIC monitors dealership advertising to ensure ongoing compliance with legislation, and dealers who break the law are subject to further administrative review by OMVIC.

Visit omvic.ca for more examples of fees or charges that must be included in an advertised price.

Educate your customers on market adjustment fees

In today’s automotive climate, as a dealer, you may be charging amounts over the manufacturer's suggested retail price (MSRP) often referred to as “market adjustment fees”. While this term is not necessarily universal, we are aware that some dealers are adding a charge onto their bills of sale, with this or a similar description to identify charges over the MSRP.

Some of these charges are built into some dealerships’ advertised price, while other dealers don’t advertise a price but itemize the charge on the bill of sale. To avoid future conflict, be sure to thoroughly explain the additional potential charges to each customer in order to avoid any confusion before a deal is signed.

Ultimately, there is nothing wrong with signaling to consumers that prices have increased because of market conditions. Market adjustment fees are unacceptable if they result in a violation of the MVDA, CPA, or the regulations prescribed under these statutes.

It’s also important to note to customers that OMVIC does not regulate manufacturers (unless they are registered as a dealership in Ontario – like Tesla). As such, advertisements posted by manufacturers do not have to comply with the MVDA and all-in pricing.

Questions?

Stay up to date on the latest guidelines for dealership sales operations at omvic. ca. Contact our dealer support team at dealers@omvic.on.ca or call 1-800-9436002 Ext. 4 if you have any questions about MVDA laws and more.

OMVIC’s resources, tips, measures, checklists, and recommendations will help you remain compliant with the MVDA in an ever-evolving vehicle sales landscape.

OMVIC also offers free education services and webinars for dealers upon request, email education@omvic.on.ca. Follow OMVIC on social media to stay up to date on the latest news.

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