Motor Vehicle Advertising and Information Disclosure Regulation

Motor Vehicle Advertising and Information Disclosure Regulation, M.R. 21/2015 The Consumer Protection Act , C.C.S.M. c. C200 Regulation 21/2015 Registered February 13, 2015 bilingual version (HTML) Table of Contents Section 1 Definitions 2 Application 3 Definition 4 Advertisement requirements 5 Availability of vehicle at advertised price 6 Price in advertisement 7 Dealer's name and permit number 8 Use of term "retail" required 9 Photographs 10 Previous use must be advertised 11 Statements in advertisements 12 Identifier advertised 13 Warranty 14 Advertising limitations 15 Advertising font face and size 16 Motor vehicle information disclosure 17 Administrative penalty 18 Coming into force PART 1 INTRODUCTORY PROVISIONS Definitions 1 The following definitions apply in this regulation. "Act" means The Consumer Protection Act . («  Loi ») "new motor vehicle" means a motor vehicle that is not a used motor vehicle. (« véhicule automobile neuf ») "used motor vehicle" means a motor vehicle (a) that has been registered under The Drivers and Vehicles Act , other than by the use on the vehicle of a dealer's or repairer's number plate or by permit; or (b) that has been registered under the vehicle registration legislation of another jurisdiction, other than by the equivalent in the other jurisdiction of the use of a dealer's or repairer's number plate or of a permit. (« véhicule automobile d'occasion ») "vehicle identification number" means the vehicle identification number as defined in The Drivers and Vehicles Act . (« numéro d'identification de véhicule ») Application 2(1) This regulation does not apply to a motor vehicle dealer who is also exempted from the definition "dealer" in The Drivers and Vehicles Act by subsection 2(2) (other than a person described in clause 2(2)⁠(d)) of the Dealers, Salespersons and Recyclers Regulation , Manitoba Regulation 40/2006. 2(2) To avoid doubt, this regulation applies to a motor vehicle dealer who leases a motor vehicle to a consumer in a consumer transaction other than on a daily or other short-term basis. PART 2 ADVERTISING Definition 3 In this Part, "advertisement" means an advertisement placed by a motor vehicle dealer to induce a trade in a motor vehicle. Advertisement requirements 4 This Part sets out the advertisement requirements for the purpose of section 231 of the Act. Availability of vehicle at advertised price 5(1) An advertisement may be placed only if the vehicle is in the motor vehicle dealer's inventory at the advertised price while that price is in effect. 5(2) Subsection (1) does not apply to a new motor vehicle that must be ordered from the manufacturer but only if the advertisement indicates, in a clear, understandable and prominent manner, that it must be so ordered. 5(3) If a motor vehicle is available only for a limited time period, the advertisement must indicate the time period during which the motor vehicle is available at the advertised price. 5(4) If an advertisement states the price of a motor vehicle and the motor vehicle dealer has only a limited number of motor vehicles available at that price, the advertisement must indicate, in a clear, understandable and prominent manner, the number of those vehicles available. 5(5) If an advertised motor vehicle is purchased or leased while the advertisement is in effect, the motor vehicle dealer must (a) post that advertisement in a prominent location in the business premises that is visible to consumers with a clear and understandable notation that the advertised motor vehicle has been purchased or leased; and (b) if the motor vehicle is still located on the business premises and is visible to consumers, affix a sign on the motor vehicle that states, in a clear, understandable and prominent manner, that it has been purchased or leased. Price in advertisement 6(1) If an advertisement states the price of a motor vehicle, the amount must not be calculated based on the inclusion of any special deduction or circumstance, including (a) the value of a trade-in motor vehicle; (b) the value of a cash-down payment; (c) the consumer's choice to enter into a credit sale agreement in respect of the motor vehicle; (d) the value of an after-tax rebate; or (e) any other trade incentive offered by the motor vehicle dealer. 6(2) If an advertisement sets out (a) the amount and timing of the payments for a motor vehicle; and (b) the total price of the motor vehicle as required by subsection 231(2) of the Act; then the payment amount and timing information must not be more prominent than the total price. Dealer's name and permit number 7 An advertisement must state, in a clear, understandable and prominent manner, (a) the motor vehicle dealer's registered business name; and (b) the motor vehicle dealer's permit number issued by the Registrar under The Drivers and Vehicles Act . Use of term "retail" required 8 If a motor vehicle dealer's business name includes the term "liquidation" or "wholesale", or a grammatical modification of either of those terms, an advertisement for a motor vehicle offered for retail sale must, in a clear, understandable and prominent manner, use the term "retail". Photographs 9(1) An advertisement may use a photograph of a motor vehicle that is not the specific motor vehicle available for purchase or lease but only if (a) the photograph is a reasonable representation of the specific motor vehicle that is available for purchase or lease; and (b) the advertisement indicates, in a clear, understandable and prominent manner, that the vehicle in the photograph is not the specific motor vehicle available. 9(2) If the advertisement is for a series or line of motor vehicles for purchase or lease and (a) the advertisement includes a photograph of a motor vehicle from that series or line; and (b) the motor vehicle in the photograph is not the vehicle for purchase or lease at the price advertised; then the advertisement must indicate, in a clear, understandable and prominent manner, that the vehicle in the photograph is not the motor vehicle available at that price. 9(3) If an advertisement includes a photograph of a motor vehicle that features options that are not included in the base model of the motor vehicle, the advertisement must indicate (a) the price for the base model of the motor vehicle; and (b) the price for the motor vehicle with the options in a font size no smaller than the font size used for the price in clause (a). Previous use must be advertised 10 If any of the following is true of a motor vehicle, an advertisement for that motor vehicle must indicate, in a clear, understandable and prominent manner, that it (a) was previously used as an emergency vehicle by a police force, fire department, ambulance service or as an authorized emergency vehicle as that term is defined in subsection 1(1) of The Highway Traffic Act ; (b) was previously used as a taxi or limousine; (c) has been rented on a daily or other short-term basis; and (d) has or had been written-off and has or had the status of a salvageable motor vehicle under The Drivers and Vehicles Act and the Written-off, Irreparable and Salvageable Motor Vehicles Regulation , Manitoba Regulation 41/2006, or the laws of another jurisdiction. Statements in advertisements 11(1) An advertisement may state that the motor vehicle is the recipient of an award only if the name of the award and the date that it was received is indicated in the advertisement in a clear, understandable and prominent manner. 11(2) An advertisement may use the term "wholesale" only if the trade being induced is between two or more motor vehicle dealers. 11(3) An advertisement may use the term "demonstrator", "demo vehicle", "company car", "executive-driven vehicle" or any other similar terms, only if that motor vehicle was acquired new by the dealer and used by the dealer only for his or her normal business operations. 11(4) An advertisement for a motor vehicle that is being sold on consignment must state, in a clear, understandable and prominent manner, that it is a consignment sale. 11(5) An advertisement may use the term "free" to describe the offering of any other item only if the item is offered without requiring the purchase or lease of a motor vehicle. 11(6) An advertisement must not state that a minimum value is guaranteed as a trade-in allowance for the purchase or lease of a motor vehicle. 11(7) An advertisement must not make a claim of superiority or comparison about the motor vehicle dealer or the motor vehicle featured in the advertisement unless the claim can be substantiated by the motor vehicle dealer. 11(8) An advertisement must not indicate or imply that a person is encouraged to breach a contract entered into with another motor vehicle dealer in order to purchase or lease a motor vehicle from the motor vehicle dealer who placed the advertisement. Identifier advertised 12 An advertisement for a specific motor vehicle must indicate the vehicle identification number or the unique stock number for the vehicle advertised. Warranty 13 If an advertisement indicates that an extended warranty is included with the purchase or lease of a motor vehicle, the advertisement must indicate, in a clear, understandable and prominent manner, (a) the term of the warranty; and (b) the maximum individual claim limits, if any, for the warranty. Advertising limitations 14 If an advertising medium has practical limitations on the amount of information that can be included in an advertisement, the advertisement must state the means by which a consumer may obtain more information about the motor vehicle dealer and the motor vehicle. Advertising font face and size 15 For the purpose of setting out information in a clear, understandable and prominent manner in an advertisement placed in a print publication, such as a newspaper or periodical, the information must be printed in a font face and size that is not smaller than the equivalent font face and size used in the publication's classified advertisements. PART 3 INFORMATION DISCLOSURE Motor vehicle information disclosure 16(1) For the purpose of section 234 of the Act, a motor vehicle dealer must ensure that the following information is disclosed in any contract that it enters into to sell or lease a new or used motor vehicle to a consumer: (a) the vehicle identification number; (b) a statement as to whether or not (i) the motor vehicle is new or used, (ii) the manufacturer's warranty that applies in respect of the motor vehicle has been cancelled, (iii) the motor vehicle is a lemon, (iv) the motor vehicle has been bought back by the manufacturer through the Canadian Motor Vehicle Arbitration Plan, (v) the motor vehicle has sustained damage caused by immersion in liquid to at least the level of the interior floorboards, (vi) the motor vehicle has sustained damage caused by fire, (vii) the motor vehicle has been used as an emergency vehicle by a police force, fire department, ambulance service or as an authorized emergency vehicle as that term is defined in subsection 1(1) of The Highway Traffic Act , (viii) the motor vehicle has been used as a taxi or limousine, (ix) the motor vehicle has or had been written-off and has or had the status of a salvageable motor vehicle under The Drivers and Vehicles Act and the Written-off, Irreparable and Salvageable Motor Vehicles Regulation , Manitoba Regulation 41/2006, or the laws of another jurisdiction and a statement as to whether it has been repaired, (x) any badge or indication on the motor vehicle relates to a different model than the model of the vehicle, (xi) the motor vehicle is materially different from the original or advertised production specifications, and (xii) the motor vehicle has been rented on a daily or other short-term basis; (c) if the motor vehicle has been damaged and the cost of repairs to fix the damage caused to the motor vehicle by an incident exceeded $3,000, a statement (i) as to the total cost of the repairs if known, or (ii) that the cost of repair exceeded $3,000 if the exact cost is unknown; (d) if the motor vehicle has been registered in a jurisdiction outside Manitoba before being registered in Manitoba, the name of that jurisdiction. 16(2) The information referred to in subsection (1) must be expressed in the contract clearly and understandably and in a way that is likely to bring the information to the consumer's attention. 16(3) In addition to the requirement to disclose the information referred to in subsection (1) in the contract, the motor vehicle dealer must orally disclose that information to the consumer in a clear and understandable manner before entering into a contract to sell or lease the motor vehicle. 16(4) A disclosure under this section is to be made to the best of the motor vehicle dealer's knowledge and belief on the basis of information that the motor vehicle dealer knew about or ought to have known about using reasonable care and due diligence. PART 4 ADMINISTRATIVE PENALTIES Administrative penalty 17(1) A notice of administrative penalty may be issued under subsection 136(1) of the Act if a person fails to comply with (a) any of the following provisions of the Act: (i) subsection 231(2), (ii) subsection 231(3), (iii) subsection 231(6); or (b) any of the following provisions of this regulation: (i) subsection 5(1), (ii) subsection 6(1), (iii) subsection 6(2), (iv) section 7, (v) section 8, (vi) subsection 9(2), (vii) subsection 9(3), (viii) section 10, (ix) subsection 11(1), (x) subsection 11(2), (xi) subsection 11(4), (xii) subsection 11(5), (xiii) subsection 11(6), (xiv) section 12, (xv) section 13. 17(2) The amount of an administrative penalty to be imposed on an individual is as follows: (a) first contravention 17(3) The amount of an administrative penalty to be imposed on a corporation is as follows: (a) first contravention 17(4) A notice of administrative penalty must be in the form provided for in the Consumer Protection Regulation , Manitoba Regulation 227/2006. PART 5 COMING INTO FORCE Coming into force 18 This regulation comes into force on the same day that section 2 of The Consumer Protection Amendment and Business Practices Amendment Act (Motor Vehicle Advertising and Information Disclosure and Other Amendments) , S.M. 2013, c. 34, comes into force.