The National Consumer Commission (NCC) welcomes the judgment of the High Court of South Africa, Gauteng Division, which dismissed an appeal by Avura Motors trading as Avura Executive Auto with costs. Avura Motors appealed the National Consumer Tribunal’s (Tribunal) ruling.

The Tribunal determined that the dealership contravened provisions of the Consumer Protection Act (CPA), 68 of 2008, concerning the sale of a defective vehicle and the failure to provide redress to the consumer.

The matter emanates from a complaint lodged by a consumer, who paid R288 577.50 (Two Hundred and Eighty-Eight Thousand, Five Hundred and Seventy-Seven Rand and Fifty Cents) for a used Mazda BT-50 vehicle from Avura Motors. The transaction took place on 15 July 2022, and within twenty-eight (28) days of the purchase, the vehicle exhibited defects, including engine noises and frequent stalling. Despite being informed of the issue on 16 August 2022, the dealership refused to assist the consumer.

The consumer was left with no option but to turn to a third party for repairs. The cost estimate for repairing the vehicle was just over R100,000.00 (One Hundred Thousand Rand) for both parts and labour. The consumer’s warranty insurer covered R75,000.00 (Seventy-Five Thousand Rand), leaving the consumer responsible for the remaining balance of R31,088.28 (Thirty-One Thousand Eighty-Eight Rand and Twenty-Eight Cents). The NCC subsequently referred the case to the Tribunal, which concluded that Avura Motors had supplied a defective vehicle, thus violating sections 55(2)(a) to (d) and 56(2)(a) of the CPA.

The Tribunal ordered the dealership to pay for the cost of the repairs and further imposed an administrative penalty of R100 000.00 (One hundred Thousand Rand). Avura Motors appealed this ruling of the Tribunal.

In its judgment, the High Court dismissed the appeal in its entirety.

The High Court held that, on a balance of probabilities, the vehicle had been sold with a latent defect that made it unsuitable for use without major repairs. The High Court concluded that the Tribunal had correctly applied the law, appropriately exercised its discretion in imposing a fine, and upheld both the factual and legal findings.

Welcoming the judgment, the NCC’s Acting Commissioner, Mr Hardin Ratshisusu, said, “This judgment should serve as a deterrent and a reminder to all suppliers that they have an obligation to comply with the CPA and its regulations, on every transaction with consumers. Finally, the consumer will be afforded redress, and the supplier held accountable for violating the CPA.”

Ends

Issued by: National Consumer Commission (NCC)  

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