A vehicle dealership has been fined R200 000 for contravening sections of the Consumer Protection Act (CPA) by refusing a consumer’s request to cancel his vehicle purchase transaction two days after the purchased vehicle’s engine seized.
On 17 January 2020, the consumer paid R276 607.49 to WP Motors Sales (Pty) Ltd, trading as WP Motors, for a 2015 Ford Ranger 2.2 TDC, XLS D/C.
The engine of the vehicle seized two days later.
This resulted in the consumer writing to WP Motors to indicate his wish to cancel the transaction for a full refund.
WP Motors refused the consumer’s request to cancel the transaction and insisted on repairing the vehicle.
The dealership further claimed that the driver’s negligence caused the breakdown of the vehicle.
An investigation by the National Consumer Commission (NCC) found that WP Motors contravened sections 55(2)(b) and (c), as well as section 56(2) of the CPA.
Section 56(2)(b) of the CPA states: “Within six months of delivery of any goods to a consumer, the consumer may return those goods to the supplier, without any penalty and at the supplier’s risk and expense.”
Sections 55(2)(b) and (c) respectively give a consumer the right to receive goods that are reasonably suitable for their intended purpose, that are of good quality, in good working order, free of defects, and usable and durable for a reasonable time.
The National Consumer Tribunal ruled that WP Motors disregarded this right as the engine of the vehicle failed within three days of purchase, rendering the vehicle unusable.
“The consumer was deprived of using and enjoying the vehicle he purchased,” it said.
The tribunal ruled that by refusing to cancel the transaction, WP Motors contravened Section 56(2) of the CPA.
Handing down its ruling, the tribunal ruled that an administrative penalty was justifiable.
The tribunal ordered WP Motors to pay an administrative fine of R200 000 and declared the dealership’s conduct as prohibited.
The NCC’s Acting Commissioner, Hardin Ratshisusu, said the commission welcomes the judgments by the tribunal.
Ratshisusu said the judgments convey a strong message to suppliers of goods and services that consumer rights must be respected.
He said the NCC believes the tribunal’s finding will deter other suppliers from engaging in prohibited conduct.
Super Group, the JSE-listed supply chain, fleet management and dealership group, says the 0.5 percentage point reduction in the prime lending rate in the six months to end-December 2024 is starting to affect both new and used vehicle sales levels.
Solera Audatex, a global player in vehicle life-cycle management, has reached a significant milestone in its growth and impact on the South African market. In 2024, the company invested in upskilling the South African automotive repair industry and trained 569 students on-site and an additional 112 students through its online platform, called Solera University.
Ford Motor Company of Southern Africa has begun full-scale production of the first-ever Ford Ranger Plug-in Hybrid Electric Vehicle (PHEV) at its Silverton Manufacturing Plant.
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If you are not taking care of your customer, your competitor will.
Bob Hooey
Super Group, the JSE-listed supply chain, fleet management and dealership group, says the 0.5 percentage point reduction in the prime lending rate in the six months to end-December 2024 is starting to affect both new and used vehicle sales levels.
Solera Audatex, a global player in vehicle life-cycle management, has reached a significant milestone in its growth and impact on the South African market. In 2024, the company invested in upskilling the South African automotive repair industry and trained 569 students on-site and an additional 112 students through its online platform, called Solera University.
Ford Motor Company of Southern Africa has begun full-scale production of the first-ever Ford Ranger Plug-in Hybrid Electric Vehicle (PHEV) at its Silverton Manufacturing Plant.
