NCC refers car dealers and home renovator to Consumer Tribunal

The National Consumer Commission has referred four suppliers of goods and services involving home renovations, car dealerships and a car service centre to the National Consumer Tribunal for adjudication after they allegedly contravened the provisions of the Consumer Protection Act.

According to the spokesperson of the National Consumer Commission (NCC), Phetho Ntaba, the NCC received and investigated a complaint against Home Renovations Cape Town. The consumer paid the company R478 545 and requested Home Renovations to include extra renovations that were not part of the original agreement for an additional R58 810.

However, as the renovations progressed, the consumer noticed various defects and poor workmanship in certain areas of the house. In addition, the renovation in some areas was not completed. The consumer therefore chose to cancel the contract and requested a refund for all the money monies paid for the partially completed renovations.

Ntaba says Home Renovations Cape Town contravened section 54(1)(b) and (c) of the Consumer Protection Act (CPA), that provides when a supplier undertakes to perform any services for or on behalf of a consumer, the consumer has a right to expect performance of the service in a manner and of the quality that people can generally expect.

The supplier must also use, deliver, or install goods that are free of defects and that are of a quality people can generally expect if the goods are required to perform the service.

ALSO READ: Consumer Commission calling for million rand fines for six used car dealers

Car turns out to be a smoking disaster

The NCC also received and investigated a consumer’s complaint against Standford Investments t/a Aksons Haval PMB where the consumer bought a used 2018 Land Rover Evoque. On the day he took delivery, the vehicle started emitting black smoke from the engine.

Although the vehicle was repaired numerous times, the defects persisted and the consumer decided to rather cancel the transaction and ask for a refund, but Aksons Haval PMB refused.

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 car must be of good quality, in good order, free of any defects, 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.

Seen 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.

In addition, this repair work is guaranteed for three months and if it breaks down again within this time, the dealer must repair it free of charge again or give your money back.

ALSO READ: Used car dealer instructed to refund consumer, court confirms Tribunal’s finding

Another dealer refusing a refund 

The NCC also investigated JMB Motors after a consumer complained about the Volkswagen Golf 6 he bought there. When the car showed various defects after two days, the consumer decided to return it and ask for a refund, but JMB refused to refund him.

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

Consumer growing old waiting for his car’s engine to be repaired

In another case, a consumer complained to the NCC about Cape Rover Parts t/a Philipi Auto. The engine of the consumer’s vehicle seized and he took it to the dealership for an engine rebuild. While Phillipi Auto undertook to repair the engine, the consumer is still waiting for his vehicle which has been with the dealership since 2022.

Ntaba says Phillipi Auto allegedly also contravened section 54(1) and (2).

Ntaba says the NCC has referred these four matters to the 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. The NCC is also asking the Tribunal to declare each supplier’s conduct prohibited.

ALSO READ: Consumer Tribunal orders refunds after consumers bought defective cars

Compliance notice for car dealer to refund consumer

The NCC also issued a compliance notice to Autohaus Beyers after it failed to refund a consumer the purchase price of R349 900 for a BMW coupe. Ntaba says the NCC’s investigation revealed that the consumer bought the car from Autohaus Beyers and within two days noticed that it had defects.

Although the car was repaired numerous times, the defects persisted. The consumer cancelled the transaction and opted for a refund but Autohaus Beyers refused to honour the consumer’s right to a refund, contravening section 56(2)(a) of the CPA.

According to section 56(2)(a), the consumer can return goods to a supplier within six months after delivery without penalty and at the supplier’s risk and expense, if the goods fail to satisfy the requirements and standards contemplated in section 55 and the supplier must, at the direction of the consumer, either repair or replace the failed, unsafe or defective goods.