Consumer rights upheld: Tribunal orders vehicle dealership to refund consumer R146,000 for defective car
The National Consumer Tribunal has ruled that a vehicle dealership must refund a consumer after they purchased a defective vehicle.
Image: Supplied
The National Consumer Tribunal has ruled in favour of a consumer who purchased a defective second-hand vehicle, ordering Nolly Motors (Pty) Ltd to refund R146,000 and collect the faulty car at its own expense.
The ruling follows an investigation by the National Consumer Commission (NCC) after the consumer lodged a complaint under the Consumer Protection Act (CPA).
According to the NCC, the consumer bought a used 2013 Audi A4 from Nolly Motors on 13 April 2022. Two days after collecting the vehicle on 15 April, the consumer began experiencing defects and requested the supplier to repair the car, a request that went unattended.
On 29 April 2022, the consumer informed Nolly Motors of the intention to cancel the sales agreement and request a full refund. The supplier refused, leaving the consumer to cover the cost of repairs.
The Tribunal found that Nolly Motors had contravened sections 56(2)(a) and (b), read with 55(2)(a) to (c) of the CPA. These sections provide that goods must be of good quality, free of defects, and suitable for their intended purpose. In addition, section 56(2)(b) states that within six months of delivery, consumers may return defective goods without penalty.
The Tribunal ruled that “the supplier must refund the consumer the full purchase price of R146,000.00 and collect the vehicle from the consumer at its own expense.”
While the NCC also alleged that Nolly Motors used unfair contract terms including the “as is” and “without warranty” clauses, this was not adjudicated because the complaint was filed after the three-year limitation period outlined in section 116 of the CPA.
However, the Tribunal held that such terms do not override the rights afforded to consumers by the CPA.
“The NCC welcomes this judgment of the Tribunal, as it reaffirms the importance of suppliers to respect consumer rights in the marketplace,” said Acting Commissioner Hardin Ratshisusu.
“This judgment should serve as a deterrent to other suppliers from engaging in similar conduct.”
The NCC urged consumers who face similar issues to lodge complaints and familiarise themselves with the rights guaranteed under the CPA.