Regulator issues wake-up call to businesses following WeBuyCars sanctions

The National Consumer Commission (NCC) has cautioned suppliers to keep their end of the deal with consumers to avoid sanctions by the regulator.

The warning comes after the used-car business WeBuyCars was slapped with a hefty fine on Tuesday for breaching certain sections of the Consumer Protection Act (CPA) by failing to provide remedies for customers on sale agreements.

FINANCIAL PENALTIES AND REDRESS
The settlement agreement, which was confirmed by the National Consumer Tribunal, includes:

A R2.5-million administrative fine.

An agreement to issue refunds amounting to R3.4 million to 31 affected customers.

The settlement agreement follows the NCC receiving complaints from consumers over the past three years against the JSE-listed company.

The investigation revealed that the company’s terms and conditions, particularly regarding warranties, did not align with the CPA.

A WARNING TO SOUTH AFRICAN BUSINESSES
Prudence Moilwa, Head of Complaints and Investigations at the NCC, says the regulator’s decisionshould be a wake-up call for businesses.

“So the lesson here is for suppliers to deal with consumers successfully at the first level but also to look at their terms and conditions, to make sure they align with the Consumer Protection Act," Moilwa said. "You can’t protect yourself through contracts from the provisions of the Consumer Protection Act.”

As part of the deal, WeBuyCars has committed to revising its terms, launching a consumer awareness programme, and creating 300 job opportunities over the next five years to improve customer service capacity.