Second-hand car dealer We Buy Cars has been fined R2.5 million and ordered to repay more than R3.4 million to customers after being found in breach of the Consumer Protection Act.
An investigation by the National Consumer Commission found that the company used sales agreements and terms that were unfair to consumers. In several cases, customers were denied refunds, repairs or proper remedies after vehicles they bought developed problems shortly after purchase.
Some consumers were also misled about their rights and were unable to cancel deals or get their money back, despite the law allowing them to do so.
The National Consumer Tribunal confirmed the penalty and ordered We Buy Cars to refund 31 affected customers. The company must also change its contracts, improve customer service and run a consumer awareness programme explaining buyers’ rights.
The ruling brings the long-running investigation to an end and sends a warning to car dealerships that fail to follow consumer protection laws.
