Business

Cartrack to refund R5.1 million to consumers: What this ruling means for South Africans

Nicola Mawson|Updated

Millions of rands have been refunded to consumers.

Image: ChatGPT

The National Consumer Tribunal’s (NCT’s) confirmation of a settlement between the National Consumer Commission (NCC) and Cartrack is part of a broader escalation in enforcement, with regulators recovering millions of rand for consumers.

The Tribunal confirmed the agreement late last week, making it a consent order under the Consumer Protection Act (CPA) after the matter was referred earlier in the month.

Cartrack will pay a R5 million administrative fine and refund R5.1 million to affected consumers, while also cancelling contracts without penalty and amending its terms.

The case stems from 210 complaints, with 167 resolved through the settlement, after the Commission found aspects of the company’s terms were inconsistent with the Act.

Going big

The outcome reflects a wider trend, with the Commission stepping up enforcement and redress efforts.

In its latest reporting, the regulator has highlighted increased focus on investigations, compliance and consumer refunds.

Its annual report – for 2024/25 and the latest – shows that the NCC achieved redress to consumers to the value of almost R6 million.

“This amount constitutes refunds or returns of goods secured during investigations of the NCC and through orders of the NCT and courts,” acting commissioner Hardin Ratshisusu said.

One case it showcased was on the back of a consumer complaint that a 2013 Audi Q7, purchased from Bryanston Executive Cars, broke down within two months of purchase. Because the dealership ignored the consumer’s request for a resolution, the NCT fined it R100,000.

Scam investment schemes

At the same time, it finalised 13 investigations into Ponzi schemes, which resulted in preservation orders to the value of R13 million.

The NCC also inspected at least 392 food suppliers, from manufacturers, wholesalers, and retailers of food through to spaza shops, which led to enforcement actions against non-compliant suppliers.

Ratshisusu also said that the NCC had a success rate of 90.47% in cases it took before the courts and the tribunal.

More complaints

Quarterly data also shows a continued pipeline of complaints and enforcement activity, pointing to persistent issues around unfair contract terms and failure to provide remedies to consumers.

In a presentation to Parliament for the third quarter, it noted that it undertook 51 enforcement actions, specifically against suppliers of illicit goods.

The NCT and courts granted six orders that resulted in R4 million paid back to consumers.

WeBuyCars

A key highlight was last December’s settlement agreement reached between the NCC and WeBuyCars in which the company agreed to refund a total amount of R3.4 million to consumers.

The used car company had been found lacking in its terms and conditions, which were not in compliance with the CPA.

In addition to the fines, it made other commitments which included creating 300 jobs over five years and revising its terms and conditions to align with the CPA.

Product recall

The Commission has also prioritised interventions such as product recalls, direct marketing controls and strengthened compliance monitoring as part of its broader mandate to protect consumers.

Against this backdrop, the Cartrack settlement highlights a shift beyond once-off penalties towards structural changes, including amendments to contracts and clearer alignment with the Consumer Protection Act.

It also signals that regulators are increasingly willing to escalate matters to the Tribunal where voluntary compliance falls short.

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