Dear Licensees,
With the return of federal EV rebates under Transport Canada’s Electric Vehicle Affordability Program (EVAP), this serves as a friendly reminder regarding the proper way to advertise government incentives pursuant to the Motor Dealer Act and the Business Practices and Consumer Protection Act*.
As of February 16, 2026, the federal EV rebate program has resumed, offering incentives for eligible vehicles, including up to $5,000 for battery-electric and fuel cell electric vehicles, and up to $2,500 for plug-in hybrid vehicles. These incentives apply to qualifying vehicles with a final transaction value of $50,000 or less (with no price cap for EVs manufactured in Canada), and eligibility is subject to specific program criteria.
Advertising Requirements and Compliance
It has come to the VSA’s attention that some dealers are advertising an incorrect total price for a vehicle by deducting rebate amounts to display a reduced price.
Dealers are reminded that a vehicle’s advertised or displayed price must reflect the total price. Any additional fees must be included in the advertised price. Potential rebates can be mentioned in the advertisement but must be shown separately from the vehicle’s total price.
A best practice would be to advertise a vehicle’s price that includes all the mandatory fees and charges a consumer has to pay.
Definition of Total Price
Total Price refers to the full amount payable for a vehicle. For new vehicles, the full amount includes:
*This amount does not automatically include taxes, license fees, or insurance costs.
Certain point-of-sale purchase incentives, such as rebates offered by federal or provincial government programs, are applied to the vehicle’s final total price after taxes have been calculated. These rebates do not reduce the total price for the purposes of tax application. For more information on this, please refer to this previously issued Dealer Alert HERE.
Dealers must ensure that only incentives available to all consumers are reflected in an advertised price. Conditional or limited-eligibility rebates must not be deducted from the advertised total price.
Advertising Rebates
If a customer must qualify for the rebate, or if the rebate is applied after tax, displaying or advertising a total price of a vehicle with the rebate already applied is misleading and deceptive. In these cases, the incentive must be shown separately and as a potential deduction from the vehicle’s total price, including taxes and fees.
Acceptable advertising examples may include language such as:
Questions?
If you have any questions regarding advertising practices, please contact the VSA’s Industry Standards department:
Disclaimer
This Bulletin does not constitute legal advice and must not be treated or relied on as such. Dealers and salespersons are cautioned against making decisions based on this material alone. Always obtain the advice of your own lawyer with respect to decisions and actions that could have legal consequences.
*This Bulletin focuses on the provincial Motor Dealer Act and the Business Practices and Consumer Protection Act provisions that apply to advertising of motor vehicles. Licensees also have to comply with Federal laws relating to the advertising of vehicles. The VSA does not administer or enforce Federal laws such as the Competition Act.
