Chapter 10

INSPECTIONS AND INVESTIGATIONS

10.01 Learning Objectives 10.05 Inspection Guide & Checklist
10.02 What Do You Know? 10.06 Investigations
10.03 Introduction 10.07 Summary
10.04 Inspections 10.08 Test Yourself

10.01
Learning Objectives
After completing this chapter, you will be able to identify:
1. The role and authority of the OMVIC inspector
2. The importance of dealers and salespersons cooperating with inspectors
3. The penalties for obstructing an inspector
4. The powers of an OMVIC investigator
5. The possibility of an investigator presenting a search warrant
10.02
What Do You Know?
Try answering these questions to test your knowledge:

1. OMVIC inspectors must give how much notice before visiting/inspecting

a dealer:
a) 24 hours’ notice
b) 48 hours’ notice
c) Seven days’ notice
d) None
2. True or False: An OMVIC inspector has the right to access dealer records,
but not the vehicles on the dealer’s lot.
3. True or False: If an OMVIC inspector asks for assistance from the dealer,
there is no legal obligation for the dealer to help.
Keep these questions in mind as you read through the following section.
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Inspectors have the
right to:
• Access and inspect the dealer’s
premises, vehicles, books,
records, etc.
• Remove records to make
photocopies.
• Make inquiries regarding any
complaint about the dealer’s
conduct.
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10.03
Introduction
The Ontario Motor Vehicle Industry Council (OMVIC) employs inspectors
and investigators to visit dealers, to handle complaints by customers and
other dealers, and to ensure dealers and salespersons follow the Motor Vehicle
Dealers Act (MVDA).
What is the difference between an inspector and an investigator?
Inspectors are somewhat similar to auditors. They have the right to inspect
a dealer’s premises, records and vehicles.
Investigators are somewhat similar to police officers. Conducting investigations
based on complaints and allegations, OMVIC investigators are provincial
offences officers and can lay charges if warranted.
The law requires that dealers and salespersons cooperate fully with inspectors
and investigators.
10.04
Inspections
Under the MVDA, OMVIC inspectors have the right to access and inspect
the dealer’s premises, vehicles and vehicle parts, money, valuables, plus
all books and records (electronic or otherwise) required to be maintained
by the dealer. Inspectors also have the right to remove records to make
photocopies if need be, and to make inquiries regarding any complaint
received about the dealer’s conduct. No prior notice of the inspection is
required. A record is kept of all completed inspections and follow-up action
is taken as necessary. Dealers may ask an inspector to show evidence of their
authority to conduct an inspection.
The inspector may use the dealer’s own computer systems to produce
information (including the dealer’s data storage, processing or
retrieval devices).
The dealer must assist the
The inspector may copy anything
inspector when asked, such
that they believe is relevant to the
as producing a document
inspection.
or record, or helping the
inspector use the dealer’s own data storage, processing or retrieval device.
The inspector can remove from the dealer items relevant to the inspection
(including data storage disks or some other retrieval device) in order to
complete the examination or make copies. The inspector must give the
dealer a receipt for anything taken and return it promptly.
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INSPECTIONS AND INVESTIGATIONS

If issues are uncovered during an inspection, the inspector may leave a notice ObSTruCTION
with the person in charge of the dealership to ensure everyone understands any is prohibited. No one can
changes required for compliance with the MVDA. obstruct an inspector, or
If OMVIC receives a complaint from the public about a dealer, an OMVIC withhold, conceal, alter
client service representative may attempt to resolve the issue over the telephone. or destroy any money,
Alternatively, an OMVIC inspector may perform an inspection and discuss the valuables, documents,
complaint with the dealer. records, vehicles or vehicle
OMVIC inspectors are based regionally to provide an inspection program for parts relevant to
the entire province. an inspection.

10.05 Inspection Guide & Checklist A VISIT FrOM an

OMVIC inspector does not
The majority of dealers recognize OMVIC’s necessarily mean there has
Inspection program as vital to ensuring been a complaint against
compliance with the Motor Vehicle Dealers Act the dealer. As a matter of
(MVDA) and its regulations. JUST as importantly, routine, OMVIC inspectors
inspections serve as an educational opportunity visit dealerships to ensure
and provide an excellent OPPORTUNITY FOR dealers and salespeople
DEALERS AND SALESPEOPLE to have understand and conform
questions answered. to all requirements of the
To assist dealers prepare for an inspection and MVDA. This also provides
gain the most benefit, OMVIC has developed the dealers and salespeople
Inspection Guide & Checklist. This resource; with an opportunity to ask
questions, and inspectors
• suggests steps to take prior to an inspection
welcome the opportunity to
• makes dealers aware of what to expect during an inspection
• makes dealers aware of the appropriate steps to take on receipt of an address any concerns.
Inspection Findings Notice (post-inspection)

The content of the Inspection Guide & Checklist is included as Appendix 5 in

this Course Manual and can also be downloaded at:
https://www.omvic.on.ca/portal/Consumers/EnforcementCompliance/
Inspections/InspectionGuideChecklist.aspx

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Investigations usually
start after receiving
information from various
sources, including:
• Referrals from OMVIC
inspectors
• Consumer complaints
• Police
• Other dealers
If substantiated, investigations
can result in prosecution,
issuance of a proposal for
revocation of registration
or referral to the OMVIC
Discipline Committee.
DEALErS or
salespersons contacted
by an investigator are not
always the subject of an
investigation or may be
involved only indirectly.
The law requires dealers
and salespeople to cooperate
with an investigation.
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10.06
Investigations
OMVIC’s investigators are appointed
under the MVDA and the Provincial
Offences Act.
They are empowered to conduct
investigations and lay charges under
several relevant statutes including
the MVDA and the Consumer
Protection Act.
Investigations fall into two broad categories: unregistered activity
(curbsiders) and dealer/salesperson misconduct. This typically involves
allegations of non-compliant advertising, failure to disclose required
information, falsification of records or unfair business practices (false,
misleading, deceptive or unconscionable representations).
Dealers or salespersons contacted by an investigator are not always the
subject of an investigation or may be involved only indirectly. The law
requires dealers and salespeople to cooperate with an investigation.
OMVIC investigators may have to remove from the dealer items relevant
to the investigation (including data storage disks or some other retrieval
device). In most circumstances, the investigator will return the item within
a reasonable time.
10.07
Summary
OMVIC inspectors and investigators have the right to enter a dealer’s
registered premises without giving prior notice. The inspector/investigator is
entitled to have unobstructed access to the dealer’s books, records, vehicles and
vehicle parts.
Refusing access or obstructing access can result in charges being laid, in
revocation of registration or in refusal of registration, based on OMVIC’s
pre-approval inspection.
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INSPECTIONS AND INVESTIGATIONS

10..08

Test Yourself
The first questions below are the same questions rEMEMbEr:
asked in “What Do You Know?” at the beginning of The questions on the
this chapter. Try answering these questions again and Automotive Certification
compare your results with your earlier answers. Test are in multiple-choice
format only. This manual,
Then, answer the additional questions.
however, contains a variety of
1. OMVIC inspectors must give how much notice before visiting/inspecting question formats to help you
a dealer: understand the content, such
a) 24 hours’ notice as activities, assignments,
b) 48 hours’ notice multiple-choice questions,
c) Seven days’ notice true-false questions and
d) None fill-in-the-blank questions.

2. True or False: An OMVIC inspector has the right to access dealer records,
but not the vehicles on the dealer’s lot.
3. True or False: If an OMVIC inspector asks for assistance from the dealer,
there is no legal obligation for the dealer to help.
4. True or False: The inspector cannot remove anything from the dealer
without the dealer’s permission or a warrant.
5. What is the main difference between an OMVIC “inspector” and an
“investigator”?
6. Choose the most correct answer:
The OMVIC inspector:
a) Can remove a document or a disk only if the inspector has a
search warrant
b) May copy a document only if the dealer agrees Refer to Appendix 1 for the
c) May use the dealer’s own computer system to produce correct answers. Review the
required information
relevant section of the
d) Cannot demand assistance from the dealer if the inspector
wants to make use of the dealer’s computer system chapter for any question

7. Provide two sources of information that might trigger an investigation. you answered incorrectly.

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