Consumer wins at the Consumer Tribunal in 2024

Consumers could chalk up a number of wins in 2024 after the Consumer Tribunal fined companies who did not adhere to the Consumer Protection Act millions of rands.

Most of the cases were about used car dealers selling cars full of defects to unsuspecting consumers, while a restaurant chain was also fined R1 million.

The National Consumer Tribunal (NCT) has fined restaurant chain Braai Block R1 million for “ripping off consumers” because it charged a service fee that was not disclosed upfront and did not indicate the address of every restaurant on its receipts.

After receiving a tip-off from a consumer, the National Consumer Commission (NCC) investigated Braai Block and found that the restaurant chain’s sales records or receipts did not reflect the address where it supplied its goods or services, that it charged a service fee which varies from one transaction to another, depending on the price of a consumer’s meal and that the advertised cost of goods on the restaurant’s menu did not include applicable fees or charges.

The Tribunal members were satisfied that the NCC proved that Braai Block contravened sections 23(6) and 26(3)(b) of the Consumer Protection Act (CPA) but did not agree that the restaurant contravened section 26(2). In addition, the Tribunal said that the contravention of sections 23(6)(a) and 26(3)(b) of the CPA is prohibited conduct.

In its consideration of the fine, the Tribunal noted the NCC’s submission that Braai Block is “ripping off” consumers of their hard-earned money by upholding the principle of charging consumers a service fee across all 16 branches.

ALSO READ: Consumer Tribunal finds another three used car dealers guilty of prohibited conduct

This is what the CPA says about used cars

According to section 55 of the CPA, which deals with consumers’ rights to safe, good-quality goods, the used car you buy must be safe and of good quality, but this section is not applicable if you bought the car at an auction. You have the right to buy a car that is reasonably suitable for the purpose it is intended for.

The used car must be of good quality, in good order, free of any defects and useable, and durable for a reasonable period of time, depending on what you will generally use it for unless the dealer has told you expressly about defects on the car, and you still agreed to buy it.

Seeing that the dealer sells cars, you can also in terms of this section assume that he will give you good advice when you explain what you will use the car for.

Section 56 of the CPA deals with the implied warranty of quality and in the case of a used car, guarantees that the car adheres to the standards set in section 55. If this is not the case, you can return the car within six months after buying it and the dealer has to repair it, exchange it or give your money back.

ALSO READ: Consumer Tribunal fines two used car dealers and orders R1 million total refund

Tribunal fined these used car dealers

• BNA Motors was fined R100 000 for selling a defective vehicle to a consumer and disregarding the consumer’s rights under the CPA. The dealer also had to refund the consumer R160 000 that he paid for the car.
• Wingfield Motors, trading as Best Price for My Car in the Western Cape, was fined R50 000 for selling a defective Ford Focus RS for R568 000 to a consumer and then refusing to repair it. The dealer also had to refund the consumer the purchase price of R568 000.
• Sandton Repo Cars was fined R100 000 and also ordered to refund a consumer the full purchase price of R459 900 for a 2018 Volkswagen TSI Golf-R for selling a defective car and refusing to refund the consumer.
• Squad Cars was fined R100 000 for making a consumer sign an agreement intended to void its obligations, saying that it would not be liable for any vehicle damage after purchase.
• Bryanston Executive Cars was also fined R100 000 for prohibited conduct because it made the consumer sign an agreement that aimed at voiding its obligations. The dealer also had to repair or replace the engine of the car.
• Spares for Africa CC was fined R75 000 for installing the wrong engine in a car. It also had to refund the consumer R5 000 that he paid upfront.
• Supertech Motor Holdings was fined R20 000 for failing to repair a vehicle to the expected standard and ensure that all the repairs the consumer paid for were properly done.

ALSO READ: Tribunal fines dealer R75 000 for wrong engine, another R20 000 for repairs

Tribunal ruled that these used car dealers had to refund consumers

• Claremont VW had to refund a consumer R106 000 after he complained to the National Consumer Commission (NCC) that the car dealer sold him a defective vehicle and refused to honour his consumer right to a refund.
• Unicity Trading (PTY) Ltd, trading as Cape SUV, had to refund a consumer R151 900 that he paid for a Daihatsu Terios. The Western Cape High Court confirmed the finding when Cape SUV took the judgement on review.
• Wynberg Used Cars had to refund a consumer after selling him a defective car and refusing to repair it.

Used car dealers who plan to sell cars full of defects to unsuspecting consumers must be careful: the National Consumer Commission (NCC) is watching. The NCC investigates complaints from consumers and if it finds that a complaint is valid and the supplier refuses to settle the matter, refers it to the Consumer Tribunal.