National Consumer Commission welcomes decisions by National Consumer Tribunal (Tribunal) against WP Motors Sales (Pty) Ltd

The National Consumer Commission (NCC) welcomes the latest decisions by the National Consumer Tribunal (Tribunal) against WP Motors Sales (Pty) Ltd trading as WP Motors and Home Renovations Cape Town (Pty) Ltd.

The NCC received and investigated the consumers' complaints where they alleged that both suppliers had contravened provisions of the Consumer Protection Act (CPA).

The NCC’s investigation revealed that WP Motors contravened section 55(2)(b) and (c) as well as section 56(2) of the CPA. On 17 January 2020, the consumer paid R276,607.49 (Two hundred and seventy-six thousand, six hundred and seven Rand and forty-nine cents) for a 2015 Ford Ranger 2.2 TDC, XLS D/C from the supplier. Two days later, the engine of the vehicle ceased. The consumer wrote to the supplier indicating his wish to cancel the transaction for a full refund. Despite the consumer’s direction to cancel the transaction, WP Motors refused to cancel the transaction and insisted on repairing the vehicle. The supplier further claimed that the driver’s negligence caused the breakdown. By refusing to cancel the transaction, WP Motors contravened Section 56(2) of the CPA.

Section 56(2)(b) of the CPA on the other hand states that “Within six months of delivery of any goods to a consumer, the consumer may return those goods to the supplier, without any penalty and at the supplier’s risk and expense.”

Section 55(2)(b) and (c) respectively give a consumer the right to receive goods that are reasonably suitable for their intended purpose; that are of good quality; in good working order; free of defects, and usable and durable for the reasonable time. The Tribunal found that WP Motors disregarded this right as the engine of the vehicle failed within three days of purchase, rendering the vehicle unusable. “The consumer was deprived of using and enjoying the vehicle he purchased.”

The Tribunal concluded that the consumer did not repudiate his claim to cancel the transaction for a refund. “On the contrary, WP Motors unfairly placed the consumer in an untenable position by compelling him to accept the vehicle against his will when it insisted on repairing the vehicle. The Supplier’s refusal to address the dispute further caused the consumer severe inconvenience”, the Tribunal alluded.

Handing down its ruling, the Tribunal was persuaded that an administrative penalty is justifiable.  WP Motors is to pay an administrative fine of R200 000 (two hundred thousand Rand). The supplier’s conduct was declared as prohibited.

Similarly, with Home Renovations Cape Town (Pty) Ltd, the NCC’s investigation revealed that the supplier has contravened sections 54 (1)(b) and (c) as well as Section 54(2) of the CPA. This comes after the consumer entered into a house renovation agreement in October 2021 and paid R478,545.00 (Four hundred and seventy-eight thousand, five hundred and forty-five Rand).  Whilst the renovation processes were underway, the consumer requested additional renovations that were not included in the initial agreement. Home Renovations (Pty) Ltd provided a quotation of R58,810.00. The consumer noticed defects with the renovations and was not satisfied with the workmanship of the supplier.

Section 54(1)(b)(c) of the CPA requires that “When a supplier undertakes to perform any services for or on behalf of the consumer, the consumer has the right to the performance of the services in a manner and quality that persons are generally entitled to expect.”

Section 54(2) also requires that “The use, delivery, or installation of goods that are free of defects and of a quality that persons are generally entitled to expect if any such goods are required for the performance of the services.

The Tribunal found that by failing to rectify defects, halting all renovations, and requesting an outstanding balance before completing the work, Home Renovations (Pty) Ltd contravened Sections 54 (1)(c) and 54(2) of the CPA. The Tribunal imposed an administrative fine of R50,000 (Fifty thousand Rand). The supplier was further ordered to refund the consumer R420,748.20 (Four hundred and twenty thousand, seven hundred and forty-eight Rand, twenty cents). The NCC was also instructed to ensure that the service provider processes the refund to the consumer.

The NCC’s Acting Commissioner, Mr Hardin Ratshisusu, stated, “The NCC welcomes the two judgements from the NCT, as both judgements convey a strong message to suppliers of goods and services that consumer rights must be respected. The NCC believes the Tribunal’s findings will deter other suppliers from engaging in prohibited conduct.”

For media enquiries contact:
Phetho Ntaba (Spokesperson/MLO)
Cell: 082 809 2031
Tel: 012 428 7762

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