OMVIC Compliance Checklist for Ontario Dealers
Ontario motor vehicle dealer compliance: OMVIC contract requirements, disclosure obligations, trust account management, garage register.
Operating a motor vehicle dealership in Ontario without OMVIC compliance is illegal and expensive. Penalties range from $5,000 fines for advertising violations to $250,000+ for operating without registration. Yet many independent dealers struggle with OMVIC's complex requirements: all-in pricing rules, disclosure obligations, salesperson registration, and contract standards.
This guide provides a comprehensive OMVIC compliance checklist for Ontario dealers covering registration, disclosure requirements, advertising rules, contract standards, and audit preparation.
OMVIC Registration Requirements
Dealer Registration ($650/year): Submit application with business plan, criminal record check, proof of location, $50,000 surety bond. Renewal annually by registration anniversary date. Late penalty: $100.
Salesperson Registration ($240/2 years): Complete OMVIC certification course, submit application, criminal record check. Must be employed by registered dealer. Renewal every 2 years. Late penalty: $40.
Disclosure Requirements
| Must Disclose | When | Penalty for Non-Disclosure |
|---|---|---|
| Accident/damage > $3,000 | Before sale | $10,000-$50,000 + compensation |
| True kilometers | Before sale (odometer statement) | $5,000-$50,000 + contract voidable |
| Lien status | Before sale | Dealer liable for lien payoff |
| Safety certification status | In contract (certified, not certified, exempt) | $1,000-$10,000 |
| Material facts | Before sale (flood damage, salvage, etc.) | $10,000-$50,000 + rescission |
All-In Pricing Rule
Rule: Advertised price must include ALL fees except HST and licensing. Admin fees, documentation fees, dealer fees, freight NOT permitted after advertised price.
Compliant: "$18,995 + HST & licensing" | Non-Compliant: "$18,995* (*plus $500 admin fee)"
Frequently Asked Questions
What is OMVIC and who does it regulate?
OMVIC (Ontario Motor Vehicle Industry Council) regulates all motor vehicle dealers and salespeople in Ontario, Canada. All dealers must be registered with OMVIC, maintain surety bonds, follow advertising standards, and comply with disclosure requirements under the Motor Vehicle Dealers Act (MVDA).
What are the key OMVIC disclosure requirements?
Dealers must disclose: Vehicle history (accidents, damage over $3,000), true kilometers, lien status, all-in pricing (no hidden fees), safety standards certificate status, and material facts affecting value. Failure to disclose = fine up to $50,000 + compensation to customer.
How much is the OMVIC registration fee?
Dealer registration: $650/year. Salesperson registration: $240 every 2 years. Late renewal penalties: $100 dealer, $40 salesperson. Operating without registration = illegal (fines up to $250,000 + imprisonment).
What is OMVIC's all-in pricing rule?
All advertised prices must include ALL fees except HST and licensing. No admin fees, dealer fees, documentation fees, or freight can be added after advertised price. Violators face $5,000-$50,000 fines per violation.
Does OMVIC require a cooling-off period?
No. Ontario has NO cooling-off period for vehicle purchases. Once customer signs contract, sale is binding. However, dealers must honor contract cancellation insurance if sold.
How often does OMVIC audit dealerships?
OMVIC conducts routine compliance audits every 2-3 years + complaint-triggered investigations. Audits review: advertising compliance, disclosure practices, salesperson registration, contract terms, and consumer complaint resolution.
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See OMVIC Compliance Tools →
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