Used car buyers score major win as unlawful 'voetstoots-style' clauses scrapped

The National Consumer Commission (NCC) has secured a landmark settlement with used car dealer WeBuyCars, forcing the company to pay a R2.5 million administrative fine and refund 31 affected consumers nearly R3.5 million.

The agreement, confirmed by the National Consumer Tribunal and carrying the weight of a High Court order, follows an investigation into contract terms that unlawfully limited consumers’ rights under the Consumer Protection Act (CPA).

NCC head of complaints and investigations, Prudence Moilwa, explains that at the centre of the dispute were WeBuyCars’ terms and conditions.

"They were waiving the consumer's rights to demand in terms of Section 56 that they repair, replace, and/or refund the vehicle. So, they had a term in the agreement that said that consumers acknowledge that in the event that they picked up defects in the vehicles, they will not hold WeBuyCars accountable.

"They've also committed to a consumer awareness programme to enhance consumer education concerning their purchasing of pre-owned motor vehicles, and to explain the consumer's rights and obligations, as well as the suppliers' obligations under the CPA.

"They've also undertaken to create 300 job opportunities at various levels across WeBuyCars over a period of five years, over and above the current planned employment opportunities, to enhance customer service capability and overall consumer experience. The Commission will also be monitoring this to make sure that they do as we have agreed."

WeBuyCars has been given two months to amend its contracts, but Moilwa stresses that consumer rights apply immediately and cannot be suspended.

To listen to Prudence Moilwa in conversation with 702 and CapeTalk's Africa Melane, click the audio below: