WeBuyCars, the JSE-listed South African vehicle trading platform, has been hit with a R2.5 million administrative fine and instructed to refund more than R3.4 million to affected consumers after regulators found that its sales terms violated South Africa’s Consumer Protection Act (CPA).
The sanction follows a three-year investigation by the National Consumer Commission (NCC) into multiple complaints from customers alleging that WeBuyCars failed to honor remedies stipulated in signed sale agreements. The matter was finalized on 19 December, when the National Consumer Tribunal confirmed the settlement agreement as a binding consent order.
Under the consent order, We Buy Cars must:
- Refund R3,419,971.83 to 31 affected consumers.
- Revise its terms and conditions to ensure full compliance with the CPA.
- Implement a consumer awareness program focused on educating buyers about pre-owned vehicle purchases and their rights under the law.
- Create 300 additional jobs over the next five years to strengthen customer service capacity and improve consumer experience.
The NCC reported receiving numerous complaints over the past three years, primarily concerning warranty provisions and sales terms that unlawfully restricted consumer rights. Following its investigation, the Commission concluded that WeBuyCars’ contracts breached several CPA provisions.
Acting NCC Commissioner Hardin Ratshisusu stated:
This settlement concludes investigations against WeBuyCars on contraventions of the CPA. The company has agreed to amend its terms and conditions to ensure full compliance, which will strengthen the protection of consumer rights.
