Toronto, Ontario – The Ontario Motor Vehicle Industry Council (OMVIC) is advising consumers to be cautious of dealer advertisements that may offer “Cash for Clunkers,” warning that in Ontario, dealer advertising that leads consumers to believe they will receive a rebate is considered a misleading and deceptive practice.
Cash for Clunkers, officially named the Car Allowance Rebate System, is a U.S.-based federal program that offers consumers a rebate towards a new purchase when retiring older model vehicles in the United States only. Although Canada does have a vehicle recycling program, called Retire Your Ride, it does not fall under the U.S. program, and Ontario does not have its own “Cash for Clunkers” rebate system.
“OMVIC’s marketing standards govern advertisements for both new and used vehicles in Ontario and level the playing field for consumers and dealers,” said Brenda McIntyre, spokesperson for OMVIC. “The purpose of the standards is to ensure advertisements are free of false statements, empty promises and deceptive representations of products or services. Among other things, advertising a ‘Cash for Clunkers’ program violates Section 3.12.1 of the Standards, which states advertisements do not offer a minimum trade-in allowance.”