We Buy Cars slapped with R2.5 million fine, ordered to repay R3.4 million to consumers
We Buy Cars has been fined R2.5 million and ordered to refund more than R3.4 million to 31 consumers after an investigation by the National Consumer Commission found its sales terms contravened consumer protection legislation.
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We Buy Cars has been slapped with a R2.5 million administrative fine and ordered to refund more than R3.4 million to consumers after regulators found that its sales terms contravened consumer protection laws.
The penalty follows a three-year investigation by the National Consumer Commission into complaints from customers who said We Buy Cars 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 affected consumers, revise its terms and conditions to comply with the Consumer Protection Act, and implement a consumer awareness programme focused on the purchase of pre-owned vehicles and consumer rights.
The company has also been directed to create 300 additional jobs over the next five years to improve customer service capacity and consumer experience.
The commission said it received multiple complaints over the past three years alleging that We Buy Cars’ warranty provisions and terms of sale unlawfully limited consumers’ rights. Following an investigation, the NCC concluded that the company’s contracts contravened several provisions of the Consumer Protection Act.
Acting NCC commissioner Hardin Ratshisusu said the settlement brought the investigation to an end and would ensure that affected consumers receive redress.
“This settlement concludes investigations against We Buy Cars on contraventions of the CPA. The company has agreed to amend its terms and conditions to ensure full compliance, which will strengthen the protection of consumer rights,” Ratshisusu said.
jonisayi.maromo@iol.co.za
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