Media Statement: Car Dealership ordered to refund the consumer R70 000

The National Consumer Commission (NCC) welcomes the National Consumer Tribunal’s (Tribunal) decision against a car dealership that contravened the Consumer Protection Act (CPA). The Tribunal declared the conduct of Alan Hyde trading as Plett Motor Services, based in Plettenberg Bay in the Western Cape, prohibited.

In this matter, the consumer filed a complaint to the NCC, and the investigation revealed that Plett Motor Services sold a defective vehicle to the consumer. The transaction was concluded on 2 November 2021 when the consumer paid R70 000 (seventy-thousand rand) for a Volkswagen Beach Buggy. The vehicle manifested defects from the day of collection. These defects included a malfunctioning hand brake, faulty pressure gauge, and blown engine, among other defects. Each time the consumer experienced issues with the vehicle, the supplier repaired it.

The consumer contacted the supplier and expressed intention to cancel the transaction for a full refund, however, the supplier disregarded the consumer’s request. Plett Motors Services submitted they were not in contravention of the CPA as the consumer knowingly purchased an old vehicle. On the other hand, the supplier informed the NCC that the vehicle was working perfectly well when the consumer took delivery of the vehicle. The supplier alleged that the consumer damaged the vehicle by over-revving it.

On 13 August 2024, the NCC referred the matter to the Tribunal. The Tribunal confirmed that Plett Motor Services contravened section 56(2) of the CPA. The supplier’s conduct was declared prohibited. The supplier was further ordered to refund the consumer R70 000 (seventy-thousand rand).

Section 56(2)(a) requires that “within six months after delivery of any goods to the consumer, the consumer may return the goods to the supplier without penalty and the supplier must, at the direction of the consumer repair or replace the unsafe or defective goods.”

The NCC’s acting Commissioner, Mr Hardin Ratshisusu, in welcoming the judgment said: “This judgement should send a strong message to second-hand car dealers and serve as a reminder that the sale of defective vehicles will be prosecuted, despite the length of time this may take.”

Issued by: National Consumer Commission (NCC)

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