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NORTHLAND CHRYSLER JEEP DODGE, FREDERICK BRENT MARSHALL
Issues:On May 23, 2014, the Registrar determined that AutoCanada Northtown Auto GP Inc., a general partner of Northtown Auto LP, dba Northland Chrysler Jeep Dodge (“Northland”) and Brent Marshall had breached the Business Practices and Consumer Protection Act S.B.C. 2004 c. 2 (the “BPCPA”) in relation to several advertisements and consumer transactions. This hearing was to address what regulatory actions should be taken to address those breaches of the BPCPA.
GENERAL CONSIDERATIONS:
In considering the appropriate regulatory actions, the Registrar considered the seriousness of the BPCPA breaches, the past history of the dealership and of Mr. Marshall along with the required factors for consideration set out in the BPCPA. The Registrar noted Mr. Marshall had shown contempt for the VSA and its investigators. The Registrar also considered that Brent Marshall had voluntarily surrendered his salesperson licence. It was also noted that Northland had taken significant positive steps to address the concerns raised by the Registrar in the May 23, 2014, decision, including:
(a) voluntarily compensating consumers affected by the breaches of the BPCPA,
(b) instigating a review of its processes and introduced new procedures to ensure clearer and more accurate advertising of motor vehicles both outside and inside the dealership, training of its staff and increased internal sharing of information with staff about vehicles for sale, and
(c) terminating the employment of Brent Marshall.
COMPLIANCE ORDER:
In considering the breaches of the Act, and the actions of Northland and Mr. Marshall, the Registrar issued the following compliance order under the Business Practices and Consumer Protection Act:
(i) That Northland and Marshall, while they are registered and/or licensed under the Motor Dealer Act, comply with the Business Practices and Consumer Protection Act and the regulations made thereunder;
(ii) That Northland and Marshall, while they are registered and/or licensed under the Motor Dealer Act, comply with the Motor Vehicle Sales Authority Advertising Guidelines pursuant to Motor Vehicle Sales Authority Directive 4.
(iii) That Northland and Marshall, while they are registered and/or licensed under the Motor Dealer Act, ensure that:
(A) all advertisements clearly specify when the terms of sale so advertised are in effect (both start and end dates);
(B) advertisement copy is affixed to the vehicles advertised for sale therein throughout the effective date of the advertisement; and
(C) advertisement copy is displayed in the show room of the dealership throughout the effective date of the advertisement and the vehicles in the advertisement are clearly marked off as sold at the time of sale;
(iv) That Northland and Marshall pay the actual costs of the inspection/investigation and actual legal costs, in an amount to be settled between the parties in accordance with the decision of the Registrar dated August 13, 2015, or before the Registrar if the parties cannot reach agreement by October 30, 2015.
(v) That Northland, while it is registered under the Motor Dealer Act, ensure that complete records, as may be necessary to verify compliance in every respect with the Business Practices and Consumer Protection Act and the regulations made thereunder, are kept for a period of two years at the dealer location and are available for inspection upon request in accordance with s. 20 of the Motor Dealer Act Regulation.
(vi) That all Northland managers and employees involved in the advertising of vehicles attend and complete an in person or online Advertising Workshop provided and administered by the Motor Vehicle Sales Authority at cost to the dealer within 90 days from the date of the compliance order.
ADMINISTRATIVE PENALTIES:
The Registrar considered administrative penalties for the breaches of the BPCPA. Again, the Registrar considered the past history of Northland and Mr. Marshall, the seriousness of the breaches, and the factors set out in the BPCPA. The Registrar noted Mr. Marshall approved advertisements and their representations. The Registrar said Northland’s penalties may have been higher had it not taken the steps that it did after the May 23, 2014, decision. The Registrar’s assessment of the proper administrative penalties payable includes the following:
1. Failure to price a 2006 Honda Civic on the lot the same price as in an advertisement
Northland $6,000 : Marshall $600
2. Showing an image of the 2006 Honda Civic as a four door sedan when it was a two door coupe
Northland $2,500 : Marshall $250
3. Misrepresenting to a consumer that the 2006 Honda Civic had a price advantage, being a “really good deal” and a “family deal” when it did not have a price advantage
Northland $6,000
4. Failure to price a 2009 Chevy Impala on the lot the same price as in an advertisement
Northland $6,000 : Marshall $600
5. Charging a consumer a $589 administrative fee on top of the advertised price for a 2009 Caravan, without advising the consumer that such a fee would be levied
Northland $2,500
6. Advertising a 2012 Dodge Journey as a 2013 model
Northland $1,000 : Marshall $100
7. General conduct calculated to deceive and mislead consumers including:
(i) failing to ensure that all salespeople know the sale pricing advertised in the relevant effective periods of flyers;
(ii) failure to correct flyers to clearly identify which vehicles are no longer available at the commencement of the effective period of the flyers;
(iii) failure to clearly identify that any negotiations on the purchase of an advertised vehicle will result in the administrative fee being added to the purchase price; and
(iv) failure to properly review the purchase agreements with purchasers, and to remove from or not include in such agreements items which have been declined by purchasers.
Northland $20,000 : Marshall $2,000
Total of Administrative Penalties: Northland $44,000 : Brent Marshall $3,550
