The National Consumer Commission (NCC) has secured another significant victory in its ongoing regulation of the second-hand motor vehicle industry, with the High Court ordering Cape SUV to refund a consumer the full purchase price after the dealership tried to blame vehicle malfunctions on the consumer’s driving style.
On 22 August, the High Court in Cape Town confirmed that Unicity Trading (Pty) Ltd, trading as Cape SUV, had violated the Consumer Protection Act (CPA). This ruling upheld an earlier decision by the National Consumer Tribunal (NCT), which found Cape SUV guilty of prohibited conduct and ordered the dealership to refund the consumer R151 900 for a defective Daihatsu Terios. The Tribunal also instructed the supplier to collect the vehicle within five business days.
Cape SUV appealed the Tribunal’s ruling, arguing that the gearbox malfunction was because of the consumer’s driving behaviour and was merely a “further defect”. However, the High Court rejected this defence, ruling that the gearbox failure was a clear indication that the vehicle had been defective from the start.
The case began in October 2020, when the NCC received a complaint from the consumer, who reported multiple defects in the vehicle from the day of purchase. Despite being repaired three times in three months, the vehicle broke down again because of gearbox failure just a day after the last repair. The consumer notified Cape SUV of the defect and sought to cancel the sales agreement for a full refund, which the dealership refused, in direct contravention of section 56(3) of the CPA.
Section 56(3) of the CPA stipulates that if a supplier repairs goods and the defect reappears within three months, the supplier must either replace the goods or refund the consumer. The High Court’s judgment reaffirmed the consumer’s rights, stating that Cape SUV’s attempt to attribute the defect to driving style was without merit.
Acting Commissioner Hardin Ratshisusu emphasised the broader implications of the ruling: “This judgment should send a strong message to suppliers who disregard the rights of consumers. The NCC has particularly prioritised the second-hand motor vehicle industry given the high volumes of complaints received from disgruntled consumers. This judgment not only affirms the rights of consumers as enshrined in the CPA but also the NCC’s approach in dealing with these matters.”
Cape SUV has been ordered to refund the consumer the full purchase price and retrieve the vehicle within five business days.
