New $5,000 Minimum Fine for Curbsiders Now in Effect

MARKHAM, December 7, 2023

On December 4, 2023, the legislation that doubles the minimum fine for illegal, unlicensed car dealers – commonly referred to as curbsiders – took effect. Bill 139, the Less Red Tape, More Common Sense Act, 2023, has received Royal Assent by Edith Dumont, Ontario’s Lieutenant Governor. Royal Assent is the last step any legislation must take before it becomes official and enforceable.

Bill 139 doubles the minimum fine for curbsiding from $2,500 to $5,000, under the Motor Vehicle Dealers Act.

“Ontario’s 1,100 new car and truck retailers are thankful to Minister Parm Gill for spearheading this common sense change to get tough on illegal car dealers,” said Frank Notte, Director of Government Relations for the Motor Vehicle Retailers of Ontario (MVRO). This is a great example of Premier Doug Ford and Minister Gill protecting consumers when making the second largest purchase of their life.”

The minimum fine for curbsiding has not increased since the Motor Vehicle Dealers Act (MVDA) was passed in 2002. Since 2013, the MVRO has advocated for tougher fines for curbsiders. Most recently in 2021, the Ontario Government held consultations on the Motor Vehicle Dealers Act and the MVRO once again recommended higher fines for curbsiders.

“After years of inaction by the previous government, Minister Gill wasted no time implementing tougher financial penalties for curbsiders. We appreciate Minister Gill’s decisive and quick action to update this fine to a more meaningful mandatory minimum,” said Notte.

Curbsiders pose a danger to car buyers by disguising themselves as individuals selling vehicles privately. They often run underground businesses that sell stolen vehicles, vehicles with undisclosed accident repairs, and vehicles that were previously written off.

According to the Ontario Motor Vehicle Industry Council (OMVIC) – Ontario’s vehicle sales regulator – curbsiders are responsible for approximately 30 per cent of vehicles listed for sale by the owner. Moreover, OMVIC has laid more than 1,000 charges against alleged curbsiders and say that number has been increasing annually.

The Motor Vehicle Retailers of Ontario has been the voice of Ontario’s 1,100 new car and truck retailers since 1908, offering industry leading advocacy and member support. MVRO members generate and support 85,300 jobs and contribute $14 billion in GDP to Ontario’s economy every year.

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