Consumer tribunal orders dealership to refund customer after faulty Audi A4 sold

The National Consumer Tribunal has ruled in favour of a consumer who purchased a faulty Audi A4 and ordered the dealership to refund the purchase price. 

This decision against Nolly Motors (Pty) Ltd was welcomed by the National Consumer Commission (NCC). 

According to reports, the consumer complained to the dealership after the purchase of a defective second-hand vehicle. 

The NCC received the complaint and investigated the allegations of contraventions of the Consumer Protection Act (CPA). 

Spokesperson for the NCC, Phetho Ntaba, said the investigation revealed the used vehicle, a 2013 Audi A4 was purchased on April 13, 2022, and the consumer paid R146,000. 

“The consumer collected the vehicle on April 15, 2022, and experienced defects two days later. The consumer informed the supplier of the defects and requested Nolly Motors repair the vehicle. This request was not attended to. On April 29, 2022, the consumer further informed the supplier of the intention to cancel the sales agreement and request a full refund; however, the supplier refused to cancel the transaction. This forced the consumer to pay for repairs,” Ntaba said. 

The Tribunal found that by refusing to repair the vehicle or refund the consumer on the purchase price, Nolly Motors was indeed in contravention of the CPA. 

“Section 55(2)(a) to (c) of the CPA gives 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. Section 56(2)(b), on the other hand, states that ‘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.’,” Ntaba said. 

During judgment, the Tribunal ruled in favour of the consumer and ordered the dealership to refund the full R146,000 and collect the vehicle at its own expense. 

The NCC’s Acting Commissioner, Hardin Ratshisusu, said that while the unfair contract terms were not adjudicated due to being lodged after the three-year limit outlined in section 116 of the CPA, the Tribunal still found that Nolly Motors’ terms and conditions contravene the CPA. Their terms stipulate that the car was sold ‘as is’ and without warranty, finding that such terms do not override the consumer protections enshrined in the CPA.

“The NCC welcomes this judgment of the Tribunal, as it reaffirms the importance of suppliers to respect consumer rights in the marketplace. This judgment should serve as a deterrence to other suppliers from engaging in similar conduct,” Ratshisusu said. 

robin.francke@iol.co.za

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