High Court rules Sandton Repo Cars must refund R459 900 for defective VW Golf sale

The High Court in Gauteng has delivered a significant ruling in favour of consumer rights, dismissing an appeal by Sandton Repo Cars concerning a contentious vehicle sale. In a case that has garnered attention for its implications on consumer protection practices in South Africa, the court upheld a prior decision mandating the dealership to refund R459 900 to a consumer who purchased a 2018 Volkswagen Golf, which, unbeknownst to the buyer, had sustained damage in a previous accident.

The dealership turned to the court after the National Consumer Tribunal ruled in June 2024 that it had violated the Consumer Protection Act by refusing to collect the faulty vehicle and issue a full refund.

The consumer purchased the vehicle on  May 13, 2020 for R459 900 and was told it had never been in an accident. Five days later, the car began leaking oil. On  October 5 2020, Volkswagen in the Western Cape confirmed that the vehicle had been in an accident and was unsafe to drive.

"On 8 October 2020, the consumer informed Sandton Repo through her lawyers that she was exercising her rights to cancel the transaction for a full refund under section 56(2)(b) of the CPA. The supplier refused to collect the vehicle and demanded that it be delivered so that the supplier could inspect it to determine the cost of usage before agreeing to cancel the transaction.

'The NCC referred this matter to the Tribunal, which held that Sandton Repo had contravened sections 51(1)(b) and 56(2)(b) of the CPA".

Sandton Repo argued that the consumer’s complaint was prescribed under the Act, but the High Court rejected this, saying the refusal to refund constituted ongoing conduct and the time limit for complaints had not started running.

The High Court’s decision means Sandton Repo must not only refund the consumer R459 900 but also pay an administrative penalty of R100 000, as originally ordered by the Tribunal.

Acting NCC Commissioner Hardin Ratshisusu welcomed the judgment, saying it clarifies the commission’s authority to investigate ongoing violations of the Consumer Protection Act.

“The NCC welcomes this judgment, particularly as it clarifies the jurisdiction of the NCC to investigate and prosecute continuing conduct that remains unresolved.

"Consumers will now be able to file complaints in circumstances where suppliers unduly delay providing redress, with the hope that such complaints would lapse.  This will ensure section 116 of the CPA (regarding time bar) is applied in a manner that fully protects consumers.” 

BUSINESS REPORT