By Lehlohonolo Lehana.
The National Consumer Tribunal has confirmed a settlement agreement between the National Consumer Commission (NCC) and car dealership We Buy Cars.
According to the NCC, in the last three years it received complaints that We Buy Cars failed to provide remedies based on sale agreements between it and consumers.
The NCC’s investigation found that certain provisions in We Buy Cars’ terms and conditions—particularly those dealing with warranties and terms of sale—were not compliant with the Consumer Protection Act (CPA).
As a result, WeBuyCars has agreed to pay a fine of R2.5 million and refund 31 consumers who complained after buying used cars that proved to have defects.
According to the statement from the NCC, the settlement, referred to the Tribunal by the NCC on December 3, was confirmed on December 19 and has now been made a consent order in terms of section 74(1) of the CPA.
Beyond financial penalties and consumer refunds, the settlement includes broader remedial measures aimed at strengthening consumer protection.
We Buy Cars has committed to implementing a Consumer Awareness Programme to educate consumers about the purchase of pre-owned motor vehicles, their rights and obligations, as well as the rights and obligations of suppliers under the CPA.
“This settlement concludes investigations against We Buy Cars on contraventions of the CPA. We Buy Cars, amongst other commitments, has agreed to review and amend terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected. Consumers that were affected by the conduct will, as part of this settlement, receive redress,” said Mr. Hardin Ratshisusu, Acting Commissioner.
You can view the full list of contraventions here: https://www.thenappeal ct.org.za/judgements/.
Meanwhile WeBuyCars has announced the acquisition of a 49% stake in the digital vehicle auction platform GoBid for R376.8 million.
The transaction, concluded through its wholly owned subsidiary, includes call and put options that could see WeBuyCars lift its shareholding to 51% within a year, and potentially acquire the remaining shares over time, subject to performance-linked mechanisms.
GoBid operates an online auction platform focused on accident-damaged, uneconomical-to-repair and second-hand vehicles. WeBuyCars currently uses the platform to dispose of non-runners, write-offs, salvage vehicles and stock that does not meet its quality standards.