WeBuyCars’ contravention of the Consumer Protection Act (CPA) has cost the used-car platform nearly R6m.
The National Consumer Tribunal’s (NCT) ruling came after grievances raised by consumers over the past three years, who alleged the company failed to provide solutions in line with sale agreements. The NCT prohibits companies from charging consumers for goods or services they did not request.
In terms of the settlement, WeBuyCars has agreed to pay a R2.5m administrative fine and a R3.4m refund to affected consumers.
The tribunal said it established a “reasonable suspicion that the terms and conditions of WeBuyCars violated multiple clauses, especially those concerning warranties and sales conditions”.
WeBuyCars buys and sells pre-owned cars. As part of the agreement, the company has committed to:
- revising its terms and conditions to ensure compliance with the CPA; and
- roll out a consumer awareness programme that focuses on the rights and obligations of buyers and suppliers of pre-owned vehicles.
WeBuyCars has also undertaken to create 300 job opportunities over five years, over and above its current employment plans, to strengthen customer service capacity and improve the overall consumer experience.
The NCT said in the past three years it received complaints from consumers complaining that WeBuyCars failed to provide remedies to consumers based on sale agreements signed between the supplier and the consumers.
Acting NCT commissioner Hardin Ratshisusu said: “WeBuyCars, among other commitments, has agreed to review and amend its terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected.”
Ratshisusu added that affected consumers would be compensated under the settlement, underscoring the consumer watchdog’s mandate to hold businesses accountable.
WeBuyCars, which listed on the JSE in April last year, bought 180,576 vehicles and sold 179,006 in the six months to September, representing increases of 7.7% and 8.4% respectively. Monthly sales volumes exceeded 15,000 units in six of the past 12 months, underscoring WeBuyCars’ growing market share.
The company’s target is to sell 23,000 cars per month by 2028.
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