Ontario Motor Vehicle Industry Council

Ontario Motor Vehicle Industry Council

March 30, 2010 16:07 ET

Ontario Motor Vehicle Industry Council: Unregistered Dealer Fined $7,000 for Not Disclosing Vehicle Histories

TORONTO, ONTARIO--(Marketwire - March 30, 2010) - The Ontario Motor Vehicle Industry Council (OMVIC) reports unregistered auto dealer Empire Auto Sales -- and its owners Dinesh Gathani, Alpa Gathani, Amit Gathani and Ankit Gathani -- were fined $7,000 for selling salvage vehicles without disclosure.

Charges were laid under the Consumer Protection Act following an investigation by OMVIC that determined vehicles sold by Empire were insurance write offs, branded as salvage. Although the vehicles had incurred major collision damage, the only disclosure made to consumers was that the vehicles had "small dents".

"When purchasing a large ticket item like a vehicle, it's important to know what you're buying and who you are buying it from," explains OMVIC spokesperson Brenda McIntyre. "Ensure your dealer is Ontario-registered so you are protected by the Motor Vehicle Dealers Act. Under the Act dealers are obliged by law to disclose to potential buyers and material fact about a vehicle's history that may affect the buyer's decision. In certain circumstances, consumers are even entitled to contract cancellation and return of their money by their dealer."

Consumers who purchase vehicles privately or through unregistered dealers are not able to take advantage of the provisions of the Act, including a dealer-supported consumer protection fund. The fund provides a safety net in the event a consumer runs into problems with their purchase or lease.

Purchasers can verify dealer and salesperson registration by contacting OMVIC at 1-800-943-6002 or visiting buywithconfidence.ca.

About OMVIC

OMVIC licenses and regulates motor vehicle dealers in Ontario and enforces the Motor Vehicle Dealers Act on behalf of the Minister of Consumer Services. OMVIC's mandate is to maintain a fair, safe and informed marketplace by ensuring registration of dealers and salespersons, inspecting dealerships, maintaining a complaint line for consumers, conducting investigations and enforcing the Act and its associated rules and regulations. OMVIC is also responsible for administering the Motor Vehicle Dealers Compensation Fund on behalf of a Board of Trustees.

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