The province has put new regulations in place to help protect families from false advertising and misleading pricing practices when purchasing a motor vehicle. This announcement was made by Tourism, Culture, Heritage, Sport and Consumer Protection Minister Ron Lemieux.
“We are pleased to have developed these new regulations in consultation with industry, stakeholders, consumer groups and other provinces with existing motor vehicle advertising legislation,” said Minister Lemieux. “Clearer, more transparent pricing and advertising practices benefit both consumers and businesses.”
Buying a car is a significant purchase for families – typically the second largest purchase after buying a home, the minister said. He noted it is important that consumers have clear and truthful information available to them when making these purchasing decisions.
“Our members want to ensure there is a level playing field for both consumers and for dealers,” said Steve Chipman, chair, Canadian Automobile Dealers Association. “We feel the new legislation will improve transparency and has the full support of our membership.”
Current vehicle advertising practices, such as omitting additional fees, charges, or conditions from prices, can be misleading or confusing for consumers, Minister Lemieux said. These new rules take effect June 1, 2015 and will improve the transparency when deciding to purchase a new vehicle and raise the standard of advertising in the marketplace, he added.
In accordance with the new legislation, a motor vehicle dealer must:
- ensure that advertisements indicate the total price of a vehicle, including all additional charges, except for the retail sales tax and the federal goods and services tax;
- ensure that an advertisement about a used late-model vehicle indicates that it is a used vehicle;
- not engage in false advertising or provide false information about a vehicle;
- only advertise a vehicle currently in the dealer’s inventory;
- indicate the time period applicable to limited time offers;
- indicate the number of vehicles available at a specified price if the number of vehicles is limited;
- not set out payment information in an advertisement more prominently than the total price; and
- disclose in the advertisement if the vehicle was ever declared salvage or used as a short-term rental or emergency vehicle.
The new regulation also consolidates the related motor vehicle information disclosure provisions from the Consumer Protection Act to the Business Practices Act. These consolidated provisions will make it easier for businesses to follow and comply with the legislation, the minister noted. The Consumer Protection Office will oversee compliance and enforcement, which includes the authority to issue administrative penalties, Minister Lemieux added.
These new rules addressing misleading advertising complement other motor vehicle protections regarding information disclosure and repairs, introduced through Let’s Make a Better Deal, Manitoba’s five-year plan for stronger consumer protection. Clearer rules for cellphone contracts, limits on payday loan and debt settlement agency fees, as well as new home warranty legislation have also been introduced as part of the plan, the minister said.
