The National Consumer Commission (NCC) welcomes the judgment handed down by the High Court of South Africa, Gauteng Division, Johannesburg, in a matter against Car Care Clinic Wilrogate (Pty) Ltd, trading as Car Care Clinic Service Centre. The judgment provides important clarity on when the three-year time bar period in terms of section 116 (1) of the Consumer Protection Act 68 of 2008 (CPA) starts running.
The NCC received and investigated a complaint from the consumer and concluded that the supplier contravened section 54(2) of the CPA. This was after the supplier fitted the consumer’s vehicle with a second-hand engine, and the vehicle later caught fire. The NCC referred the matter to the National Consumer Tribunal (Tribunal). The Tribunal dismissed the matter, stating that it was filed outside the three years prescribed in section 116 (1) of the CPA. The Tribunal held that the period started running when the engine replacement was completed in July 2020.
The NCC appealed the Tribunal’s ruling before the High Court. The High Court subsequently upheld the appeal, set aside the Tribunal’s ruling and referred the matter back to the Tribunal to be heard on the merits.
In overturning the Tribunal’s decision, the High Court found that the complaint under section 54 of the CPA arose when the supplier refused to provide the consumer with a remedy after being requested to do so. The High Court held that the consumer’s cause of complaint arose on 13 November 2020, when the supplier formally rejected liability and refused to remedy the damage caused to the vehicle. The Court further found that the NCC’s referral of the matter to the Tribunal on 15 September 2023 fell within the prescribed three-year period in terms of section 116(1) of the CPA.
In welcoming the judgment, the NCC’s Acting Commissioner, Mr Hardin Ratshisusu, said, “The judgment strengthens consumer protection enforcement and provides much-needed clarity on the enforcement of consumer rights in line with the objectives of the CPA. The ruling further reinforces the responsibility of suppliers to properly address complaints relating to the supply of defective goods or poor service. The NCC will continue holding suppliers accountable for violating the CPA.”
Background
In June 2020, the consumer took their vehicle to the supplier, who fitted a second-hand engine on the consumer’s vehicle. The consumer collected the vehicle on 25 July 2020 after the replacement was completed and thereafter the vehicle experienced numerous defects. The vehicle was taken back for repairs and returned to the consumer on 1 August 2020. A few days later, while driving the vehicle, the consumer noticed a “restricted performance” warning light appearing on the dashboard. The supplier allegedly advised him to ignore the warning, indicating that it was caused by a sensor issue.
On 24 September 2020, the engine caught fire. The incident was immediately reported to the supplier, and the vehicle was towed back to the workshop for further assessment. On 13 November 2020, the supplier provided the consumer with an assessment report which allegedly cleared the workshop of any wrongdoing and attributed the fire to a fuel leak. The supplier subsequently refused to repair the damage or provide the consumer with any remedy in terms of section 54(2) of the CPA.
The Consumer, dissatisfied with this outcome, first approached the Ombudsman for Short-Term Insurance, South Africa Consumer Complaints, and the Motor Industry Ombudsman of South Africa. The matter was not resolved by MIOSA, and the consumer subsequently filed a complaint with the NCC on 12 May 2021.
Ends
Issued by: National Consumer Commission (NCC)
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