The National Consumer Commission (NCC) welcomes the National Consumer Tribunal’s (Tribunal) decision against Nolly Motors (Pty) Ltd (Nolly Motors).

The Tribunal ruled in favour of a consumer who had complained to the supplier following the purchase of a defective second-hand vehicle. The NCC received and investigated allegations of contraventions of the CPA Consumer Protection Act (CPA).  

The investigation revealed that the consumer purchased a used 2013 Audi A4 from the supplier on 13 April 2022 and paid R146,000.00 (One Hundred and Forty-Six Thousand Rand). The consumer collected the vehicle on 15 April 2022 and experienced defects two days later. The consumer informed the supplier of the defects and requested that Nolly Motors repair the vehicle. This request was not attended to. On 29 April 2022, the consumer further informed the supplier of the intention to cancel the sales agreement and request a full refund; however, the supplier refused to cancel the transaction. This forced the consumer to pay for repairs.

The Tribunal found that by refusing to repair or refund the consumer the purchase price, Nolly Motors contravened sections 56(2)(a) and (b) of the CPA read with 55(2)(a) to (c). Section 55(2)(a) to (c) of the CPA gives a consumer the right to receive goods that are reasonably suitable for their intended purpose; that are of good quality; in good working order; free of defects; and usable and durable for a reasonable time.

Section 56(2)(b), on the other hand, states that “Within six months of delivery of any goods to a consumer, the consumer may return those goods to the supplier, without any penalty and at the supplier’s risk and expense.”  

Handing down the judgement, the Tribunal ruled that the supplier must refund the consumer the full purchase price of R146,000.00 (One Hundred and Forty-Six Thousand Rand) and collect the vehicle from the consumer at own expense.  

While the unfair contract terms were not adjudicated due to being lodged after the three-year limit outlined in section 116 of the CPA, the Tribunal still found that Nolly Motors’ terms and conditions contravene the CPA. Their terms stipulate that the car was sold “as is” and without warranty, finding that such terms do not override the consumer protections enshrined in the CPA.

“The NCC welcomes this judgment of the Tribunal, as it reaffirms the importance of suppliers to respect consumer rights in the marketplace. This judgment should serve as a deterrence to other suppliers from engaging in similar conduct”, said the NCC’s Acting Commissioner, Mr Hardin Ratshisusu.

Ends

Issued by: National Consumer Commission (NCC)  

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