The National Consumer Commission (NCC) welcomes the latest decisions by the National Consumer Tribunal (Tribunal) against Kia East Rand (PTY) Ltd and TM Cars (PTY) Ltd.
The NCC received and investigated consumer complaints against both suppliers for purported contraventions of the Consumer Protection Act (CPA) provisions.
The NCC’s investigation revealed that on 9 September 2022, the consumer paid R245 075.00 (Two Hundred and Forty-Five Thousand and Seventy-Five Rand) for a used 2015 Audi A3 vehicle from Kia East Rand (PTY) Ltd. On 19 October 2022, the vehicle displayed defects. The consumer informed the supplier that the vehicle was overheating and a “Low Engine Pressure” warning had illuminated on the instrument cluster. The vehicle was collected from the consumer to repair the water pump. However, the defects were not fully resolved as further inspection revealed that the cylinder head gasket had blown.
The Tribunal found that the supplier contravened 56(3) of the CPA. According to the Tribunal, “the overheating of the vehicle and the blowing up of the cylinder head gasket within six months of purchase rendered the vehicle less suitable for the purpose for which it was generally intended.
The Tribunal further stated that the provisions of section 56(3) oblige a supplier who repairs defective goods to either replace the goods or refund the purchase price…”
Kia East Rand was ordered to refund the consumer the vehicle’s purchase price. The supplier was further ordered to pay an administrative penalty of R50 000. 00 (Fifty Thousand Rand).
In another matter, the Tribunal confirmed a settlement made between the NCC and TM Cars (PTY) Ltd, a Cape Town-based car dealership, thereby making it an order of the Tribunal. The NCC investigated the consumer’s complaint, which revealed that on 22 May 2022, the consumer purchased a 2013 3.0 D-40 Toyota Fortuner and paid R225,000.00 (two hundred and twenty-five thousand Rand) to the supplier. On the same day, the vehicle developed certain defects and was returned to the supplier for repairs. However, shortly after being returned to the consumer, the same defects persisted. This contravened section 55(2)(a) -(c) read with section 56(3)(b) of the CPA.
The supplier agreed to refund the consumer R150,000.00 (One Hundred and Fifty Thousand Rand).
The NCC’s Acting Commissioner, Mr. Hardin Ratshisusu, said, “The NCC welcomes the two rulings from the NCT, as both send a clear message to suppliers that consumer rights must be protected. The NCC believes that the Tribunal’s decisions will discourage other suppliers from participating in illegal practices.”
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Issued by: National Consumer Commission (NCC)
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