Due to WeBuyCars not adhering to consumer rights regarding used cars, it now has to take the financial pain of refunds and fines, as well as other expenses.
Car dealer WeBuyCars has confirmed that it settled complaints from 31 consumers recently with the Consumer Commission and will refund them a total of R3.4 million. In addition, the used car dealer will pay a fine of R2.5 million.
The 31 consumers complained to the National Consumer Commission (NCC) that WeBuyCars did not adhere to the Consumer Protection Act (CPA) that gives consumers the right to return a used car that is defective within the first six months and choose to have a refund, repairs or an exchange for another car without defects.
After investigating the complaint, the NCC reached an agreement with WeBuyCars and referred the matter to the National Consumer Tribunal (NCT) to be confirmed and made an order of the court.
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WeBuyCars will pay penalty and refund consumers
WeBuyCars confirmed in a statement that the NCT approved a settlement agreement they reached with the NCC.
“As part of the settlement, we agreed to an administrative penalty and to provide redress to affected consumers. This settlement brings finality to legacy matters the NCC identified and allows us to focus fully on forward-looking compliance and safeguarding the interests of our customers.
“We welcome the conclusion of this process and view it as part of our ongoing commitment to constructive engagement with regulators and oversight bodies. We engaged proactively and collaboratively with the NCC throughout the process.
“In addition, we introduced a range of operational improvements to enhance our consumer-facing processes and strengthen our compliance framework, reflecting our continuous commitment to best practices and to serving our customers’ interests.”
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WeBuyCars will enhance compliance with CPA
As part of WeBuyCars’ commitment to continuous improvement, the dealer will actively enhance its compliance with the CPA. “We also value the NCC’s business guidance and interventions. This collaborative approach helps to ensure that our operations remain aligned with best practice and regulatory expectations.
“We also work closely with the Motor Industry Ombud of South Africa (MIOSA) and consistently abide by its rulings and recommendations. To put this in context, we sold 172 320 pre-owned vehicles in 2024, with only 0.36% of customers who approached the Ombud for dispute resolution.
“The majority of these matters were resolved amicably or in our favour. This record demonstrates that we conduct our business responsibly and in accordance with the CPA, with disputes occurring in only a very small minority of transactions compared to the scale of our operations.
“We remain committed to transparency, ethical conduct and continuous improvement. We continue to invest in training, systems and customer support to ensure fair outcomes for our customers and uphold the highest standards of compliance within South Africa’s motor industry.”
