Close on the heels of OMVIC’s Notice to Auctions in October of 2024 of their Key Obligations, https://tinyurl.com/aj74ahe7 the UCDA’s Executive Director, James Hamilton and OMVIC’s Chief Consumer Protection Officer, Jeff Donnelly commenced a series of meetings in January with auctions that deal primarily with wholesale buying and selling.
OMVIC is currently considering “best practice” recommendations to auctions on how to ensure they have received and/or reviewed required disclosures by listing dealers. This is an effort to create some consistency in the industry and ensure that auctions are receiving the required disclosures from those entities listing vehicles for sale on their platforms.
An open dialogue helped all the parties to understand OMVIC’s role, concerns and objectives as well as those of the industry. OMVIC wants to see a more uniform approach across all auction platforms with lien, accident and material fact disclosure. The UCDA wants to see a streamlined arbitration approach that treats both sellers and buyers fairly, resolving disputes quickly. Time is money and justice delayed is justice denied. A big dealer must be treated the same as a little one.
Where arbitration fails to resolve legitimate concerns, due to timelines or other reasons, dealers always have legal rights granted by Ontario law. Dealers that have to choose that route to resolve their differences may resort to OMVIC or the courts, without needing to worry about negative reaction from any auction.
The expectation is that these talks will continue and we will all work together to ensure proper declarations are being made at the auctions, arbitrations are run fairly and efficiently, and buyers and sellers can continue to transact business with the confidence that their transactions are in accordance with the highest ethical and regulatory standards in Ontario. Ontario enjoys some of the most forward-looking wholesale protections in Canada after all.
With thousands of vehicles moving through our auction system in Ontario, the real number of serious complaints is low, but as with most things, there are always areas where improvements can be made.
It was gratifying to hear some of the amazing work being done at the auctions to improve their processes, due diligence and the overall dealer experience, and we trust that work will continue.
All parties recognize, in this new age of digital sales and on-line auction formats, that the need for due diligence and frank disclosure is more important than ever. Buyers rely heavily on fulsome fact sharing, and what is not said can be as important as what is said. The days of being able to see the car run down the lane, listen for an engine knock or see what dash lights are on are over; buyers need good photos and detailed, honest descriptions to put a number on a bid.
The UCDA fully supports OMVIC’s renewed focus on the wholesale side of the marketplace. It reminds all of us that today’s wholesale piece is tomorrow’s consumer sale.