South Africa: Webuycars Settlement Signals Tougher Stance On Consumer Rights in Used-Car Market

By Jamie Benjamin

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.

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...

Read the full story on Daily Maverick.

Copyright © 2025 Daily Maverick. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.