Consumer rights under the spotlight in the used car market. Picture Credit: Atterbury
By Aisha Zardad
South Africa – We Buy Cars has been fined R2.5 million and ordered to refund more than R3.4 million to affected consumers after regulators found that its sales terms contravened South Africa’s consumer protection laws.
The ruling follows a three-year investigation by the National Consumer Commission (NCC) into complaints from customers who alleged that the company failed to provide remedies in line with signed sale agreements. The settlement agreement was confirmed as a binding consent order by the National Consumer Tribunal on 19 December.
In terms of the order, We Buy Cars (Pty) Ltd must refund R3,419,971.83 to 31 consumers who were adversely affected. The company has also been instructed to revise its terms and conditions to ensure full compliance with the Consumer Protection Act (CPA).
As part of the remedial measures, We Buy Cars is required to implement a consumer awareness programme focused on the rights of buyers in the pre-owned vehicle market. The programme is intended to improve transparency and ensure that consumers are better informed when entering into vehicle sale agreements.
The commission’s investigation found that the company’s warranty provisions and conditions of sale unlawfully limited consumer rights, prompting regulatory intervention. Authorities indicated that the settlement brings the matter to a close while ensuring that affected consumers receive appropriate redress.
In addition, We Buy Cars has been directed to create 300 new jobs over the next five years, aimed at improving customer service capacity and enhancing the overall consumer experience.
Regulators say the outcome reinforces the importance of compliance with consumer protection legislation and sends a strong message to businesses operating in South Africa’s automotive sector that consumer rights must be upheld.
