New Rules for Motor Vehicle Advertising and Information Disclosure Come into Force June 1, 2015
Although the Motor Vehicle Advertising and Information Disclosure legislation does not come into force until June 1, 2015, this information is intended to help you understand the laws governing motor vehicle advertising and information disclosure before it becomes law.
Following consultation with the public and the motor vehicle dealer industry, the Province of Manitoba has proclaimed new legislation to improve the advertising practices used in the marketplace. This legislation is included in a new part in The Consumer Protection Act, which consolidates into one regulation, the new motor vehicle advertising provisions with the existing information disclosure provisions from The Business Practices Act.
Applicable Legislation
Key elements of the new legislation include:
Advertised prices
- Must be the total price for the vehicle and include all additional charges (except for the retail sales tax and the federal goods and services tax);
- Must not be calculated based on the inclusion of any special deduction or circumstance; and
- Must not show the amount and timing of the payments for a vehicle, in a manner that is more prominent that the total price for the vehicle.
Photographs
- Must be reasonable representations of the vehicle for sale; and
- Must indicate the price of the base model and the price of the vehicle with the options in a font of equal or greater size when showing photographs of vehicles featuring options not included in the base model.
Vehicle availability
- Advertisements may be placed only if the vehicle is in the dealer’s inventory at the advertised price while the price is in effect.
- If a vehicle is available for a limited time period, the advertisement must indicate the time period the vehicle is available.
- If a limited number of vehicles are available at an advertised price, the dealer must indicate the number of vehicles available.
Statements in Advertisements
- The term “wholesale” may only be used if the trade being induced is between dealers.
- Advertisements must state if the vehicle is being sold on consignment
- The term “demo vehicle” or other similar term may only be used if the vehicle was acquired new by the dealership and used only for normal business operations.
- Advertisements must not state a minimum value is guaranteed as a trade-in allowance.
- Claims of superiority about a dealer must not be made unless they can be substantiated.
- Advertisements stating a vehicle is the recipient of an award must indicate the name of the award and date the award was received.
