We Buy Cars to pay R2.5m fine, R3.4m refunds in consumer commission settlement
We Buy Cars has agreed to pay a R2.5m fine and over R3.4m in refunds to affected consumers in National Consumer Commission settlement.
The National Consumer Tribunal has confirmed a settlement agreement between the National Consumer Commission (NCC) and We Buy Cars has been reached following ‘constructive engagement’ between the latter two parties. 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 says it formed a reasonable suspicion that the company’s terms and conditions, particularly those related to warranty and terms of sale, contravened several provisions of the Consumer Protection Act (CPA) 68 of 2008.
Following an investigation, the NCC found that the terms and conditions of the sale agreements did contravene the CPA. The settlement agreement was referred to the National Consumer Tribunal on December 3 and, after due consideration, confirmed last Friday.
In the settlement, We Buy Cars agreed to pay an administrative fine of R2.5m and refund a total sum of R3 971.83 to the 31 affected consumers. The company also agreed to revise its terms and conditions to align with the CPA; commit to a Consumer Awareness Programme to educate consumers about purchasing pre-owned vehicles, their rights and obligations, and the supplier’s rights and obligations under the CPA; and create 300 job opportunities at various levels in the company over a five-year period.
“This settlement concludes investigations against We Buy Cars on contraventions of the CPA. We Buy Cars, among 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 acting commissioner Hardin Ratshisusu.
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The post We Buy Cars to Pay R2.5 Million Fine, R3.4 Million Refunds in Consumer Commission Settlement appeared first on CAR Magazine.
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