National Consumer Tribunal formalises R10 million redress deal with Cartrack

Vehicle tracking service provider, Cartrack, has agreed to pay more than R10 million in fines and refunds after settling with the National Consumer Commission (NCC).

The National Consumer Tribunal has confirmed the agreement as a consent order giving it legal force under the Consumer Protection Act.

The case stems from more than 200 complaints lodged with the NCC, with 167 of those now forming part of the settlement agreement.

The commission said that its investigation found that some of Cartrack’s terms and conditions were inconsistent with the Consumer Protection Act, particularly with how consumer complaints and remedies were handled.

As part of the agreement, Cartrack will pay a R5 million administrative fine and refund just over R5.1 million to affected consumers.

The company has also agreed to cancel relevant contracts without penalties and to amend its terms and conditions to remove any vagueness and ensure alignment with the law.

The NCC said that the settlement brings to a close a lengthy investigation and will provide redress to consumers who were affected.

Consumers who believe their complaints are included in the agreement are being advised to review their contracts and any previous complaints lodged with CarTrack or the NCC.

The agreement was reached without any admission of liability by CarTrack, with the company saying it opted to settle to avoid prolonged legal proceedings.