What is Motor Vehicle Dealers Act?

A Motor Vehicle Dealers Act is provincial legislation that regulates the business of buying and selling vehicles, setting the rules dealers and salespeople must follow to operate legally. These acts commonly require dealer and salesperson licensing, mandate all-in price advertising, require disclosure of a vehicle's material facts such as prior accident, brand, or prior use, and establish consumer remedies and, in some provinces, a compensation fund. Regulators like OMVIC in Ontario and AMVIC in Alberta administer their respective acts. For a dealership, compliance means proper registration, honest advertising, and complete, documented disclosure on every deal. Because each province has its own act with different specifics, dealer groups need province-aware processes. Keeping disclosure and advertising records organized in your systems is the practical key to passing inspections and defending against complaints.