When OMVIC Takes Action
In Ontario, no one may act as a motor vehicle dealer or salesperson without being registered under the Motor Vehicle Dealers Act, 2002 (MVDA, s. 4(1)). OMVIC administers that registration, so its Registrar decides whether a dealership or salesperson can keep trading. This page is for dealers and salespeople whose registration is being questioned, as well as those dealing with a consumer complaint or a referral to OMVIC’s Discipline Tribunal.
Illustrative example, not an actual OMVIC notice
“Take notice that the Registrar proposes to revoke your registration as a salesperson, for the reasons set out below. You are entitled to a hearing by the Licence Appeal Tribunal if you mail or deliver a written request for a hearing to the Registrar and to the Tribunal within 15 days after service of this notice.”
OMVIC describes three separate enforcement routes, and a single set of facts can lead to more than one: a Registrar’s proposal about registration heard by the Licence Appeal Tribunal; a referral to the Discipline Tribunal for alleged breaches of the Code of Ethics; and prosecutions under the Provincial Offences Act for offences under the MVDA or consumer protection legislation.
Who Investigates and Who Decides
- Regulator
- OMVIC, the administrative authority for the MVDA. Its Registrar handles registration, complaints and proposals.
- Who investigates
- The Registrar or a designate can inspect a dealer’s premises and records (MVDA, s. 15). Investigators appointed under the Act can obtain search warrants from a justice of the peace (ss. 18–19) and may lay charges.
- Who decides about registration
- The Registrar proposes to refuse, suspend, revoke or attach conditions to a registration. If you request a hearing, the Licence Appeal Tribunal (LAT) decides (s. 9).
- Who decides Code of Ethics matters
- OMVIC’s Discipline Tribunal, a panel of three that includes industry and public members. Its decisions can be appealed to an appeals panel (s. 17; O. Reg. 332/08).
- Who hears further appeals
- LAT decisions under the MVDA can be appealed to the Divisional Court (Licence Appeal Tribunal Act, 1999, s. 11).
Dealers, salespeople, officers and directors
A dealership is registered as a business, and its registration can be refused or revoked because of its finances or because of the past conduct of its officers, directors or other interested persons (MVDA, s. 6(1)(d)). A salesperson is registered as an individual, and the test looks at their own honesty, integrity and financial responsibility (s. 6(1)(a)). Dealers must notify the Registrar within five days when a salesperson starts or stops working for them, and give the reason for any termination; salespeople must also report changes in their employment (s. 24).
The grounds for refusing or revoking registration include past conduct that gives reasonable grounds to believe the business will not be carried on lawfully and with integrity and honesty, financial irresponsibility, a false statement in an application, and breach of a condition of registration (s. 6(1)).
Common Issues in Dealer Investigations
Vehicle history disclosure
Contracts for used vehicles must disclose specified facts, including prior use as a daily rental, police or emergency vehicle, taxi or limousine; fire damage; flood damage reaching the floorboards; a total-loss declaration by an insurer; and an irreparable, salvage or rebuilt branding (O. Reg. 333/08, s. 42). Missing or late disclosure is one of the most common sources of complaints and discipline.
Advertising and all-in pricing
An advertised price must include the vehicle price plus all other charges related to the trade, such as freight, pre-delivery inspection, fees and levies. Sales taxes may be left out only if the ad clearly says they are not included, and ads placed jointly by several dealers have their own rules (O. Reg. 333/08, s. 36(7)–(10)). Ads for a specific vehicle must also disclose certain prior uses (s. 36(5)).
Registration integrity
Undisclosed criminal charges or past regulatory history, inaccurate answers on an application, unpaid judgments or other signs of financial irresponsibility, and breaches of conditions on a registration (MVDA, s. 6(1)).
Unregistered trading
Selling without registration (“curbsiding”), letting unregistered people sell, or trading from an unauthorized location or under an unregistered name (MVDA, s. 4).
Odometer and condition issues
Failing to disclose a broken, replaced or rolled-back odometer or a reading in miles, or misrepresenting a vehicle’s condition or history (O. Reg. 333/08, ss. 33, 42).
What Can Happen Next
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Complaint or inspection
When the Registrar receives a complaint, it can require information from any registrant, who must provide it as soon as practicable (MVDA, s. 14(1)–(3)). The Registrar may then try to mediate, issue a written warning, require courses, refer the matter to discipline, start a proposal under s. 8, or take other action under the Act (s. 14(4)).
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Notice of Proposal and LAT hearing
Before refusing, suspending or revoking a registration, or imposing conditions you have not agreed to, the Registrar must serve a Notice of Proposal with reasons (MVDA, s. 9(1)–(2)).
Deadline
You are entitled to a hearing if you mail or deliver a written request to the Registrar and to the Licence Appeal Tribunal within 15 days after service of the notice (MVDA, s. 9(2)). The clock starts on service. A notice sent by registered mail is deemed served on the third day after mailing (s. 37(2)). If no hearing is requested in time, the Registrar may carry out the proposal (s. 9(4)).
At the hearing, the LAT may direct the Registrar to carry out the proposal or substitute its own opinion, and can attach conditions (s. 9(5)). If you applied to renew on time, your registration continues until the time for requesting a hearing ends or, if you request one, until the LAT decides (s. 9(8)).
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Temporary suspension
If the Registrar proposes to suspend or revoke and considers it in the public interest, it can also order an immediate temporary suspension (MVDA, s. 10(1)–(2)). If you request a hearing, that order expires 15 days after the LAT receives your request, unless the hearing begins within that time and the LAT extends it (s. 10(3)).
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Discipline Tribunal
For alleged Code of Ethics breaches, OMVIC issues a Notice of Referral to Discipline. Many matters settle through an agreed statement of facts and penalty. If not, a three-person panel hears the case. Sanctions can include required courses, funding courses for a dealer’s salespeople, a fine of up to $25,000, and costs (MVDA, s. 17(4)). A party may appeal to the appeals committee within 30 days after the discipline committee sends notice of its order (O. Reg. 332/08, s. 19(1)).
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Appeal to Divisional Court
A LAT order takes effect immediately even if appealed, but the LAT may grant a stay pending the appeal (MVDA, s. 9(9)), and the Divisional Court can also stay the order (Licence Appeal Tribunal Act, 1999, s. 11).
Proposal, referral or charge? A Notice of Proposal concerns your registration and goes to the LAT. A Notice of Referral to Discipline concerns the Code of Ethics and goes to OMVIC’s Discipline Tribunal. A charge is prosecuted in provincial offences court. Each has different deadlines and outcomes.
Checklist: Responding to OMVIC
Documents to gather
- The notice, proposal or referral, and proof of how and when it was served
- Complete deal files: bills of sale, disclosure statements, vehicle history reports, trade-in documents and financing records
- Copies of the advertisements involved, as they appeared, with dates
- Registration applications and renewals, and any conditions on your registration
- Records of salesperson hiring and termination notices sent to OMVIC
- For dealerships: corporate records, officer and director details, and current financial statements
- Correspondence with the customer and with OMVIC
Details to check in the notice
- Is it a Notice of Proposal, a Notice of Referral to Discipline, a temporary suspension order, or a request for information?
- The date and method of service, and the date your 15-day hearing-request window ends
- Both addresses for your hearing request: the Registrar and the Tribunal
- The specific grounds or Code of Ethics provisions relied on
- Whether conditions are proposed as an alternative to revocation
Rules and resources to consult
- Motor Vehicle Dealers Act, 2002, ss. 4, 6, 8–11, 14–17, 24 and 37
- O. Reg. 333/08 (General), including ss. 36 and 42 on advertising and contract disclosure
- O. Reg. 332/08 (Code of Ethics and Operation of Committees)
- Licence Appeal Tribunal – General Service forms, rules and practice directions on the Tribunals Ontario website
- OMVIC’s Discipline and Appeals Committee rules of practice
Frequently Asked Questions
Is a Notice of Referral to Discipline the same as a Notice of Proposal?
No. A Notice of Proposal is about whether you keep your registration, and it goes to the Licence Appeal Tribunal. A Notice of Referral to Discipline alleges Code of Ethics breaches, and it goes to OMVIC’s Discipline Tribunal, which can impose fines and courses but not revoke registration.
Can I keep selling while I contest a proposal to revoke?
A proposal is not itself a revocation. Unless the Registrar also makes a temporary suspension order (s. 10), the Registrar can carry out the proposal only if you do not request a hearing in time or the Tribunal directs it (s. 9(4)–(5)).
What happens if I miss the 15-day deadline?
The Registrar may carry out the proposal (s. 9(4)). If you are near or past the deadline, act immediately and raise the timing with the Tribunal; do not assume an extension will be granted.
Does a salesperson’s problem affect the dealership?
It can. Dealers must employ only registered salespeople and report employment changes to the Registrar (ss. 4, 24), and the Registrar can look at the conduct of officers, directors and interested persons when deciding a dealership’s registration (s. 6(1)(d)).
Sources
Statutory references are to the provisions listed below, as consolidated on e-Laws when this page was prepared.
- Motor Vehicle Dealers Act, 2002, S.O. 2002, c. 30, Sched. B, ss. 4, 6, 8–11, 14–19, 24, 37 — e-Laws consolidation period beginning December 4, 2023; checked November 10, 2026.
- O. Reg. 333/08 (General), ss. 33, 36, 42 — Checked November 10, 2026.
- O. Reg. 332/08 (Code of Ethics and Operation of Committees), ss. 10, 18–19 — Checked November 10, 2026.
- Licence Appeal Tribunal Act, 1999, S.O. 1999, c. 12, Sched. G, s. 11 — e-Laws consolidation period beginning January 1, 2025; checked November 10, 2026.
- OMVIC, “Licence Appeal Tribunal” — Checked November 10, 2026.
- OMVIC, “Notice of referral to discipline (NORD)” — Checked November 10, 2026.
- OMVIC, “Investigations” — Checked November 10, 2026.
- Tribunals Ontario, Licence Appeal Tribunal – General Service — Checked November 10, 2026.