The National Consumer Tribunal (NCT) has named and shamed another three dealerships for violating the Consumer Protection Act (CPA).
In recent judgments, the Tribunal condemned the actions of Farhad Omar Ismail, trading as Squad Cars, Bryanston Executive Cars CC, and Wynberg Used Cars (Pty) Ltd for undermining the aims of the CPA and exploiting consumers.
These rulings come on the heels of the NCT penalising two other dealerships: Wingfield Motors (Pty) Ltd, operating as Best Price for My Car in the Western Cape, and Sandton Repo Cars (Pty) Ltd. Best Price was ordered to reimburse a consumer R568 000 and pay a R50 000 fine, while Sandton Repo Cars had to refund R459 900 and pay a R100 000 penalty.
Read: Tribunal cracks down on second-hand car dealers – fines and refunds of R1.15m issued
In the Squad Cars case, the National Consumer Commission (NCC) investigated a complaint involving a 2014 BMW 316i that stopped working two months after purchase. Squad Cars refused to repair the vehicle, citing a condition of sale that disclaimed any warranties.
The Tribunal ruled that Squad Cars’ terms were unfair, depriving the consumer of their right to request repairs or a refund. This conduct was found to contravene sections 48(1)(a)(ii) and 48(1)(c) of the CPA, leading to a R100 000 fine.
Section 48(1)(a)(ii) prohibits a supplier from offering to supply, or supplying, or entering an agreement to supply goods or services on unfair, unreasonable, or unjust terms.
Section 48(1)(c) prohibits a supplier from requiring a consumer to waive any rights, assume any obligation, or waive any liability of the supplier on terms that are unfair, unreasonable, or unjust, or to impose any such terms as a condition of entering a transaction.
Bryanston Executive Cars was similarly fined R100 000 for selling a defective 2013 Audi Q7 that broke down within two months. The supplier ignored the consumer’s pleas for redress, violating sections 56(2) and 55(2)(c) of the CPA.
Section 56(2) provides that if goods are defective or unsafe, a consumer can return them within six months of delivery, without penalty and at the supplier’s risk and expense, and the supplier must, at the direction of the consumer, either repair or replace the goods, or the refund the consumer.
Section 55(2)(c) states that consumers have the right to receive goods that will be useable and durable for a reasonable period, “having regard to the use to which they would normally be put and to all the surrounding circumstances of their supply”.
Additionally, Bryanston made the consumer sign an agreement that circumvented its obligations under the CPA, breaching section 51(1)(b)(i) and (ii). These sections prohibit a supplier from making a transaction or an agreement subject to any term or condition if its general purpose or effect is to defeat the purposes and policy of the CPA or mislead or deceive the consumer.
Wynberg Used Cars also faced scrutiny after selling a used Honda Accord for R99 995 that showed defects within two weeks. The vehicle had 171 496 kilometres on the clock.
Despite some repairs, the supplier refused to fix the problems, forcing the consumer to cover the costs. Although Wynberg was found to have breached section 56(2)(a) read with section 55(2)(a) to (c) of the CPA, no fine was imposed, because the Tribunal acknowledged the supplier’s partial compliance.
These cases highlight the importance of consumer rights and ongoing efforts to hold unscrupulous dealers accountable.
“The conduct of these suppliers is a clear disregard of the CPA and the rights of consumers. We believe these judgments will deter other suppliers from engaging in the same conduct,” said the NCC’s acting Commissioner, Hardin Ratshisusu.
