Business ProfileforHighland Ford

Gov. Action
On February 23, 2018, the OMVIC Discipline Committee found Highland Ford Sales Ltd. in breach of Sections 4, 6, and 9 of the OMVIC Code of Ethics, as set out in Ontario Regulation 332/08, made under the Motor Vehicle Dealers Act, 2002.

This matter proceeded on the basis of an Agreed Statement of Facts, Joint Submission on the Penalty and the Parties' Waiver of Hearing, pursuant to Rule 1.07 of the Rules of Practice before the Discipline Committee and the Appeals Committee.

In or around December 2008, OMVIC issue a Dealers Standard Publication advising dealers of up and coming changes to the Act. Included in the bulletin was the requirement for dealers to advertise all-inclusive vehicle prices ("all-in pricing") in advertisements.

After the Act was proclaimed, OMVIC further issued Dealer Standard publications reminding dealers of their all-in pricing obligations.

Furthermore, OMVIC issued dealer bulletins which also reminded dealers of requirements to advertise all-in prices.

During an inspection on or about March 16, 2017, a representative of the Registrar reminded Smyl, on behalf of the Dealer, of its all-in pricing obligations. Said representative further clarified all-in pricing that all in pricing extended to advertising forms such as pricing adhered directly to vehicle on the lots ("window danglers").

By letter dated April 21, 2017, a representative of the registrar further reminded Smyl, on behalf of the dealer, that all-in pricing requirements extended to window danglers.

On or about November 3, 2017, a representative of the Registrar discovered the following non-compliant advertisement:
2005 Mazda RX-8
Window dangler price: $7,995 plus HST, licensing, and administrative fee
Website price: $8,995

As such, the dealer's advertised vehicle prices are not all-inclusive. This is contrary to section 36(7) of Regulation 333/08 as well as section 4 and 9 of the Code of Ethics.

As the person in charge of the dealer, Smyl failed to ensure the Dealer's advertising is compliant with industry regulations. As such, Smyl has breached section 6.1 of the Standards of Business Practice, as well as sections 6 and 9 of the Code of Ethics.

Since the issuance of the Notice of Complaint, the individual responsible for producing used vehicle advertising on behalf of the dealer has agreed to successfully complete the Automotive Certification course no later than April 6, 2018.

By failing to comply with the following sections of the Motor Vehicle Dealers Act, 2001: Regulation 333/08

36. Advertising:
If an advertisement indicated the price of the motor vehicle, the price shall be set out in a clear, comprehensible and prominent manner and shall be set out as the total of a)the amount that a buyer would be required to pay for the vehicle and b)subject to subsections 9 and 10, all other charges related to the trade in the vehicle, including. If any charges for freight, charges for inspection before delivery of the vehicle, fee, levies and taxes.

It is thereby agreed that the Dealer and/or Smyl have breached the following sections of the Code of Ethics as set out in regulation 332/08:

4. A registrant shall ensure that all representations, including advertising made by or on behalf of the registrant in connection with trading in motor vehicles, are legal, decent, ethical and truthful.
6. A registered salesperson shall not do or omit to do anything that causes the registered motor vehicle dealer who employs or retains the salesperson to contravene this regulation or any applicable law with respect to trading in motor vehicles.
9. In carrying on business, a registrant shall not engage in any act or omission that, having dishonorable, unprofessional or unbecoming of a registrant.


After review and consideration, the Chair of the Discipline Committee made the following Order:

1. The Dealer is ordered to pay a fine in the amount of $2,000 no later than April 6, 2018.

2. The Dealer is ordered to offer all current and future sales staff the opportunity to complete the OMVIC automotive course. Current sales staff will be offered the course within 90 days of the date of the Discipline Committee Order. Future sales staff will be offered the course within 90 days of being retained in this capacity. The dealer will incur all costs associated with this. It is understood between the parties this clause does not apply to sales staff who have completed the course or who are otherwise required to do so pursuant to the Act.

4. The Dealer and Smyl agree to comply with the Act and Standards of Business Practice, as may be amended from time to time.

The complete Discipline Decision can be found here: https://www.omvic.on.ca/portal/Portals/0/pdf/discipline/2018/DisciplineDecision-HighlandFord-Signed-Feb23.pdf