A settlement between the National Consumer Commission and WeBuyCars has resulted in a R2.5m fine, millions in refunds to affected buyers and changes to the company’s sales practices. The National Consumer Tribunal confirmed a settlement agreement between the National Consumer Commission (NCC) and WeBuyCars, following investigations into complaints that the company had failed to provide adequate remedies to consumers under the Consumer Protection Act (CPA). The settlement, confirmed on 19 December, makes the agreement a consent order — effectively giving it the same legal force as a court ruling — in terms of section 74(1) of the CPA.
It follows a referral by the NCC on 3 December after what the commission described as constructive engagement between the parties. According to the NCC, complaints lodged over the past three years raised concerns that WeBuyCars’ sale agreements — particularly provisions relating to warranties and terms of sale — contravened multiple sections of the CPA. Following its investigation, the NCC concluded that the terms and conditions used in these agreements were inconsistent with consumer protection legislation.
Welcoming the consent order, acting NCC commissioner Hardin Ratshisusu said, “This settlement concludes investigations against WeBuyCars on contraventions of the CPA. “WeBuyCars, amongst other commitments, has agreed to review and amend terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected. Consumers that were affected by the conduct will, as part of this settlement, receive redress.” The case highlights broader challenges in South Africa’s second-hand vehicle market, which consistently ranks among the most complained-about sectors handled by the NCC.
Read Full Article on Daily Maverick
[paywall]
Consumer grievances frequently centre on undisclosed defects, refusal to repair or refund vehicles, and contract clauses that attempt to limit buyers’ statutory rights. Under the CPA, consumers who purchase vehicles from dealers are entitled to goods that are reasonably suitable for their intended purpose, of good quality and free of defects. Where vehicles fail to meet these standards within six months of purchase, consumers have the right to a repair, replacement or refund — rights that cannot be waived or excluded through contractual terms.
In practice, this means buyers are not expected to absorb the risk of hidden defects simply because a vehicle is second-hand. Regulators have increasingly signalled that attempts to contract out of these protections will not be tolerated, particularly in industries where sellers typically know far more about the product than buyers. In addition to financial penalties and refunds, the settlement’s emphasis on revised terms, consumer education and expanded customer service capacity reflects a regulatory push toward longer-term compliance rather than punitive action alone.
[/paywall]
