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Cartrack to Refund R5.1 Million to Consumers: What the NCT Ruling Means for South Africans

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Source : {Pexels}

The National Consumer Tribunal’s (NCT) 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 Settlement

The Tribunal confirmed the agreement late last week, making it a consent order under the Consumer Protection Act (CPA) .

Cartrack will:

  • Pay a R5 million administrative fine

  • Refund R5.1 million to affected consumers

  • Cancel contracts without penalty

  • Amend 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.

A Wider Trend

The outcome reflects a broader shift, 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.

The NCC’s annual report shows that the Commission 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.

Other Cases

Bryanston Executive Cars:
A consumer complaint that a 2013 Audi Q7 broke down within two months of purchase led to a R100,000 fine after the dealership ignored the consumer’s request for a resolution.

Ponzi schemes:
The NCC finalised 13 investigations into Ponzi schemes, resulting in preservation orders to the value of R13 million .

WeBuyCars:
In December, the NCC reached a settlement with WeBuyCars, which agreed to refund R3.4 million to consumers, create 300 jobs over five years , and revise its terms to align with the CPA.

The Bigger Picture

The Cartrack settlement highlights a shift beyond once-off penalties towards structural changes, including:

  • Amendments to contracts

  • Clearer alignment with the CPA

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

The Bottom Line

Cartrack is paying R5 million. It’s refunding R5.1 million. It’s changing its terms.

The NCC is stepping up. The NCT is enforcing. And consumers are getting their money back.

The message is clear: unfair contracts won’t stand. And non-compliance comes with a price.

{Source: IOL}

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