What does the Compensation Fund administered by OMVIC provide for?

The Compensation Fund administered by OMVIC is designed specifically to provide reimbursement for losses incurred by consumers as a result of certain unethical or fraudulent activities conducted by licensed motor vehicle dealers. This mechanism serves to protect consumers who may have suffered financial loss due to issues such as failure to deliver the vehicle as promised, not providing a title for the vehicle, or other violations of consumer rights.

By focusing on consumer protection, the fund reinforces trust in the automotive marketplace and encourages a fair trading environment. This approach underscores the importance of accountability among dealers and offers peace of mind to consumers knowing that they have recourse in case of wrongdoing. The other options do not align with the primary purpose of the Compensation Fund, which is solely aimed at consumer reimbursement rather than financial aid to dealers, funding for new dealerships, or advertising support.