Faulty cars: National Consumer Commission takes on car dealerships, seeking penalties worth millions of rand
The National Consumer Commission (NCC) has referred six car dealerships to the National Consumer Tribunal for adjudication.
This comes after the commission received complaints from consumers alleging that these suppliers had contravened provisions of the Consumer Protection Act (CPA).
The NCC investigated complaints against Autoview Pre-Owned (PTY) LTD based in Boksburg in Gauteng; Cederquist Trade Transmission based in Stikland in Bellville in the Western Cape; Myaa Auto CC, Super-Tech-Motor Holding trading as BMW (PTY) Ltd based in East London in the Eastern Cape; Avura Motors trading as Avura Executive Motors from Rustenburg in the North West; as well as Plett Motors from Plettenburg in the Western Cape.
“The NCC received and investigated two complaints against Autoview Pre-Owned (PTY) LTD, the first supplier, alleging that the supplier contravened various sections of the CPA.” spokesperson of the National Consumer Commission Phetho Ntaba, said.
“The NCC’s investigation revealed that the first consumer purchased a 2010 BMW X3 from the supplier for R240,840 and within six months of delivery, the vehicle manifested defects whilst being driven. Upon inspection, it was discovered that the gearbox was faulty.”
The quotation to repair the faulty gearbox amounted to R90,198.
“Autoview Pre-Owned refused to replace the gearbox,” said Ntaba.
The second complainant purchased a Jeep Cherokee SUV for R196,850, and within two months of delivery, the vehicle manifested some defects. The defects were reported to the supplier where the consumer had elected for the supplier to repair the defects.
“Autoview Pre-Owned (PTY) LTD refused to repair the defects. For refusing to repair both vehicles, the supplier had contravened sections 56 (2) read with section 55 (2),” according to the National Consumer Commission.
With Avura Motors, the the second supplier, the NCC’s investigation revealed that the consumer purchased a vehicle for R288,577 and within 28 days of the delivery, the vehicle started manifesting defects.
The consumer approached Avura Motors, seeking the supplier to repair the vehicle.
“Avura Motors refused to repair the vehicle stating that their warranty states that they can only assist if the car is driven for 1000km or if a defect manifests within 30 days. By refusing to repair to repair the vehicle, the supplier contravened section 56(2) of the CPA,” said Ntaba.
In the matter with Cederquist Trade Transmission, the third supplier, the NCC’s investigations revealed that the consumer entered into a transaction with the supplier for the repairs of the vehicle’s transmission and was quoted an amount of R35,024.
On June 22, 2021, the supplier completed the repairs, and the consumer collected the vehicle.
“However, on June 25 and 29, the consumer returned to the supplier as the defects were still not fixed. Section 54 of the CPA gives consumers the right to demand quality service,” Ntaba said.
“If the supplier fails to perform a service or services in a manner and quality as expected by the consumer, the supplier must refund to the consumer a reasonable portion of the price paid for the services performed.”
The investigation against Plett Motor Services, fourth supplier, revealed that the consumer had purchased a Volkswagen Beetle for an amount of R70,000 from the supplier and the vehicle broke down on the same day of collection from the supplier.
The consumer elected for the vehicle to be repaired, and this was done.
“However, upon collection, the consumer discovered that the vehicle was not drivable and informed the supplier of their intention to cancel the deal. Plett Motor Services refuses to cancel the transaction, thus contravening section 56 (3) of the CPA,” said Ntaba.
The National Consumer Commission also received and investigated a complaint against Super-Tech-Motor Holding trading as BMW (PTY) Ltd, the fifth supplier, based in East London in the Eastern Cape.
The investigation revealed that the consumer took their vehicle to the supplier for repairs and the vehicle was repaired.
“Upon collection, the consumer drove for about 10 kilometres and started experiencing the same defects. The consumer requested a refund of money paid to repair the vehicle and the supplier refused, thus contravening section 54(2) of the CPA,” said Ntaba.
“In another matter, a consumer purchased a vehicle from Myaa Auto CC, the sixth supplier, and the following day, the consumer discovered defects,” she said.
“The consumer informed the supplier of the defects. The NCC’s investigation revealed that the Built-in System Interface (BSI) and the gearbox were faulty. The consumer contacted the supplier to cancel the transaction and requested a refund, but the supplier refused.”
The National Consumer Commission emphasized that the supplier’s refusal to cancel the transaction contravened section 56(2) of the Consumer Protection Act.
“The NCC has referred these matters to the National Consumer Tribunal seeking redress for each consumer and an administrative penalty of 10% of each supplier’s total annual turnover or R1 million — whichever is greater,” said Ntaba.
The National Consumer Commission is also asking the Tribunal to declare each of the six car dealership’s conduct as prohibited.
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