We Buy Cars to pay R2.5m fine, R3.4m in refunds

The National Consumer Tribunal has confirmed a settlement agreement between the National Consumer Commission (NCC) and We Buy Cars (Pty) Ltd (WBC), bringing to an end an investigation into alleged contraventions of the Consumer Protection Act (CPA).

According to the statement from the NCC, the settlement, referred to the Tribunal by the NCC on December 3, was confirmed on December 19 and has now been made a consent order in terms of section 74(1) of the CPA.

In terms of the consent order, We Buy Cars has agreed to pay an administrative fine of R2.5 million and to refund a total of R3,419 971.83 to 31 affected consumers.

The refunds relate to complaints lodged with the NCC over the past three years, in which consumers alleged that the company failed to provide appropriate remedies in terms of sale agreements.

The NCC’s investigation found that certain provisions in We Buy Cars’ terms and conditions—particularly those dealing with warranties and terms of sale—were not compliant with the CPA. As part of the settlement, the company has undertaken to revise its terms and conditions to ensure full alignment with the Act.

Beyond financial penalties and consumer refunds, the settlement includes broader remedial measures aimed at strengthening consumer protection. We Buy Cars has committed to implementing a Consumer Awareness Programme to educate consumers about the purchase of pre-owned motor vehicles, their rights and obligations, as well as the rights and obligations of suppliers under the CPA.

The company has also committed to creating 300 additional job opportunities across various levels of its operations over the next five years. These positions are intended to enhance customer service capacity and improve the overall consumer experience, and will be in addition to We Buy Cars’ existing employment plans.

Welcoming the confirmation of the consent order, Acting NCC Commissioner Hardin Ratshisusu said the agreement marked a decisive conclusion to the matter.

“This settlement concludes investigations against We Buy Cars on contraventions of the CPA. We Buy Cars, amongst other commitments, has agreed to review and amend terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected. Consumers that were affected by the conduct will, as part of this settlement, receive redress,” Ratshisusu said.

The NCC said the outcome demonstrates its continued commitment to enforcing the CPA and ensuring that suppliers in the motor vehicle sector are held accountable for conduct that undermines consumer rights.

Cape Times