Consumers win big as watchdogs recover R60m in fines and refunds

As last year drew to a close, two key rulings dealing with consumer rights were handed down: one by the Supreme Court of Appeal (SCA) and another by the National Consumer Tribunal. In both cases, the consumer was victorious.

In the landmark-setting SCA matter, it ordered WesBank to repay the R170 023 a consumer had paid in instalments over a defective used Ford Ranger that it had financed.

That ruling hinged on the fact that the bank was seen to have supplied the vehicle because it retained ownership of it until the final instalment had been paid.

Trudie Broekmann, who represented the consumer, says “where a consumer would previously have returned his vehicle to the dealership if it turned out to be a lemon, if it’s financed, the financier now has to carry the can”.

This means that consumers can now claim directly against banks for defective products, avoiding delays or disputes with dealerships. Banks will also be liable for any harm caused by defects, such as accidents or pileups, Broekmann explains.

Another victory – also within the motor trade – was against WeBuyCars after it entered into a settlement with adjudicator National Consumer Tribunal’s (NCT’s) regulatory body, the National Consumer Commission (NCC). The deal, approved by the NCT just days before Christmas, resulted in WeBuyCars having to pay an administrative fine of R2.5 million as well as refund 31 consumers R3.5 million.

The used car company had been found lacking in its terms and conditions, which were not in compliance with the Consumer Protection Act (CPA). In addition to the fines, it made other commitments which included creating 300 jobs over five years and revising its terms and conditions to align with the CPA.

Moonstone Information Refinery says that, “together, the two developments reflect a tightening regulatory and judicial approach, with suppliers and financiers increasingly being held accountable for defective products and unfair contractual terms, and fewer avenues to evade consumer protection obligations through technicalities or fine print”.

Deputy Minister of Trade, Industry, and Competition, Zuki Godlimpi, adds that “we live in an unequal society where the relative power of consumers is not equal to that of credit providers and goods and services suppliers”.

Fairness and justice require a complete set of laws and a legal system that is open to everyone, Godlimpi says. “Through its judgments, it [the NCT] makes a difference in shaping the economy, setting precedents, changing industry behaviour, and changing the lives of South Africans,” he says.

The numbers underscore this impact: in the previous five years, the NCC obtained over R22 million in redress for consumers, while R38.8 million worth of administrative fines were imposed. The NCC also helps consumers across South Africa achieve product replacements and repairs.

Its Strategic Plan for the years 2025 to 2030 indicates that the number of cases filed have grown from 488 to 41 751 between the 2009/10 and 2023/24 years.

Under the National Credit Act, the NCT also deals with Debt Re-arrangement Applications, an administrative process through which consumers’ credit agreement obligations are formally and legally rearranged with their debtors. On Tuesday alone, 20 cases had been filed with the Tribunal.

Several of these were referred by the NCC, which investigated 13 Ponzi schemes in the 2023/24 year, securing preservation orders worth R13 million in conjunction with the National Prosecuting Authority to safeguard consumers’ interests.

In the 2024/25 financial year, administrative fines to the value of R2.9 million were levied by the NCT, following prosecutions by the NCC.

Beyond these high-profile cases, the NCC continues to tackle everyday consumer protection issues. On its website, it posts alerts warning consumers of unscrupulous companies. Its latest list, from mid-December, notes that there are 95 suppliers that it cannot trace that accepted payments from consumers but failed to deliver goods, services, or supplied defective products, in contravention of the CPA.

“The NCC views this conduct as a deliberate ploy by unscrupulous suppliers to rob consumers of their hard-earned money and ultimately evade accountability,” it says.

In addition, the NCC also deals with product recalls such as those of Domestos Lemon and Fresh variants, Ford Rangers, and various dry pet food products supplied by RCL Foods.

The NCT aims “to promote a fair and accessible consumer and credit market by ensuring fair and inquisitorial adjudicative processes,” Trevor Bailey, the executive chairperson of the NCT, says in its annual report.

FACT BOX: Here’s a breakdown of your core rights under the CPA:

Right to Equality: Equal access to goods/services, free from discrimination.

Right to Privacy: Protection from unwanted direct marketing (can opt out).

Right to Choose: Freedom to select suppliers and products, and to cancel fixed-term agreements (with reasonable penalties).

Right to Disclosure: Clear, plain language information about products, services, and terms.

Right to Fair & Responsible Marketing: Protection from misleading advertising or high-pressure tactics.

Right to Fair & Honest Dealing: Protection from fraud, deception, and unfair contract terms.

Right to Fair Terms & Conditions: Contracts must be just, reasonable, transparent, and in plain language.

Right to Fair Value, Quality & Safety: Goods/services must be of good quality, safe, and provide fair value; consumers can demand repairs, replacements, or refunds for defective items within 6 months.

Right to Accountability: Suppliers are accountable for their products and services, including warranties.

Right to Lodge Complaints: Access to mechanisms like the NCC for redress.

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