Sinenhlanhla Masilela|Updated32 minutes agoGauteng dealership ordered to refund buyer R320,000 for advertising faulty car as ‘excellent condition’ …

The National Consumer Tribunal has mandated a Gauteng dealership to refund over R320,000 to a buyer misled by false advertising. The National Consumer Tribunal has ordered a Gauteng-based dealership to refund more than R320,000 to a buyer who was misled by false advertising. The case involved Johannesburg customer, R Prins and car dealership Midcity Motors 3 (Pty) Ltd, following a dispute over a second-hand vehicle advertised as being in “excellent condition.” The tribunal found that the dealership’s claims were not only misleading but struck at the very heart of the sale agreement.

The tribunal ruled that the dealership’s conduct violated key provisions of the Consumer Protection Act (CPA), particularly those relating to fair and honest dealing and the accurate description of goods. He argued he would not have purchased the vehicle at all if the dealership had advertised the vehicle correctly. Despite his immediate dissatisfaction and request to rescind the sale, Midcity Motors failed to address his concerns for over two years.

Prins had already sought andobtained a ruling from the Motor Industry Ombudsman of South Africa (MIOSA) in his favour, but the dealership failed to comply with the resolution. In evaluating the case, the tribunal determined that Midcity Motors’ misrepresentation effectively voided the sale agreement, emphasising that misleading advertising practices severely compromise consumer trust. “The supplier provided the consumer with something different from what was bought,” the tribunal noted, emphasising that misleading descriptions in online sales environments pose a growing risk to consumers.

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Midcity Motors attempted to mitigate the issue by proposing a price reduction of 10% to 15%, arguing that the vehicle, despite its issues, remained usable. However, the tribunal dismissed this suggestion, asserting that permitting price cuts under such circumstances could encourage the dishonest behaviour they aimed to eradicate from the industry.

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