A settlement between the National Consumer Commission and WeBuyCars has resulted in a R2.5m fine, millions in refunds to affected buyers and changes to the company’s sales practices. (Photo: iStock) 
A R2.5-million administrative fine and millions in consumer refunds imposed on WeBuyCars underscore growing regulatory pressure on South Africa’s used-car industry, where complaints about defective vehicles and unfair contract terms are persistent.
The National Consumer Tribunal confirmed a settlement agreement between the National Consumer Commission (NCC) and WeBuyCars, following investigations into complaints that the company had failed to provide adequate remedies to consumers under the Consumer Protection Act (CPA).
The settlement, confirmed on 19 December, makes the agreement a consent order — effectively giving it the same legal force as a court ruling — in terms of section 74(1) of the CPA. It follows a referral by the NCC on 3 December after what the commission described as constructive engagement between the parties.
Under the agreement, WeBuyCars has committed to paying an administrative fine of R2.5-million and refunding a total of R3.42-million to 31 affected consumers. The company will also revise its terms and conditions to ensure alignment with the CPA, implement a consumer awareness programme focused on rights and obligations when purchasing pre-owned vehicles, and create 300 new jobs over five years to improve customer service capacity.
According to the NCC, complaints lodged over the past three years raised concerns that WeBuyCars’ sale agreements — particularly provisions relating to warranties and terms of sale — contravened multiple sections of the CPA. Following its investigation, the NCC concluded that the terms and conditions used in these agreements were inconsistent with consumer protection legislation.
Welcoming the consent order, acting NCC commissioner Hardin Ratshisusu said, “This settlement concludes investigations against WeBuyCars on contraventions of the CPA.
“WeBuyCars, amongst other commitments, has agreed to review and amend terms and conditions to ensure full compliance with the CPA, a measure that will ensure consumer rights are fully protected. Consumers that were affected by the conduct will, as part of this settlement, receive redress.”
A sector under scrutiny
The case highlights broader challenges in South Africa’s second-hand vehicle market, which consistently ranks among the most complained-about sectors handled by the NCC. Consumer grievances frequently centre on undisclosed defects, refusal to repair or refund vehicles, and contract clauses that attempt to limit buyers’ statutory rights.
Under the CPA, consumers who purchase vehicles from dealers are entitled to goods that are reasonably suitable for their intended purpose, of good quality and free of defects. Where vehicles fail to meet these standards within six months of purchase, consumers have the right to a repair, replacement or refund — rights that cannot be waived or excluded through contractual terms. In practice, this means buyers are not expected to absorb the risk of hidden defects simply because a vehicle is second-hand.
Regulators have increasingly signalled that attempts to contract out of these protections will not be tolerated, particularly in industries where sellers typically know far more about the product than buyers.
Beyond penalties
In addition to financial penalties and refunds, the settlement’s emphasis on revised terms, consumer education and expanded customer service capacity reflects a regulatory push toward longer-term compliance rather than punitive action alone.
The requirement that WeBuyCars creates 300 additional jobs over five years is intended to address service delivery shortcomings that often underpin consumer disputes, while the consumer awareness programme aims to improve understanding of rights and obligations on both sides of vehicle transactions.
For consumers, the consent order reinforces that their complaints can result in tangible outcomes, even against large, well-established companies. For the industry, it serves as a warning that standard-form contracts and internal processes will be closely scrutinised for compliance with consumer law.
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Bottom line
The WeBuyars settlement is more than a discrete enforcement action. It reflects sustained regulatory attention on the used-car market and a growing willingness by authorities to intervene where consumer rights are undermined. As demand for pre-owned vehicles remains strong, compliance with the CPA — in practice, not just on paper — is increasingly becoming a non-negotiable cost of doing business. DM