Webuycars fined R2.5 million and ordered to refund customers over CPA violations
Webuycars fined R2.5 million and ordered to refund customers over CPA violations has become the leading headline in the South African automotive industry this week. The National Consumer Tribunal (Tribunal) recently confirmed a massive settlement between the National Consumer Commission (NCC) and the popular used car retailer, We Buy Cars (WBC). This legal action follows a grueling three-year investigation into the company’s business practices and its handling of defective vehicles. Consequently, the company must now pay an administrative R2.5 million fine and provide substantial redress to dozens of frustrated buyers.
The Landmark Settlement and Consent Order
The National Consumer Tribunal officially turned the settlement into a consent order on 19 December 2025. This move came after the NCC referred the agreement to the Tribunal earlier in the month. By doing so, the state has ensured that the terms of the settlement are legally binding. The used car retailer has now been forced to acknowledge that its previous terms and conditions did not meet the standards set by the Consumer Protection Act (CPA).
Acting Commissioner Hardin Ratshisusu stated that this settlement concludes all current investigations against We Buy Cars regarding these specific contraventions. While the company is a giant in the local market, this ruling proves that no entity is above the law when it comes to safeguarding the rights of ordinary South Africans.
Why the NCC Investigated the Used Car Retailer
The investigation began because the National Consumer Commission received a flood of complaints from the public. Specifically, consumers alleged that We Buy Cars refused to provide fair remedies when vehicles were found to be defective shortly after purchase. In many instances, the company reportedly pointed to fine-print clauses in their sale agreements to avoid responsibility.
After reviewing these complaints, the NCC formed a “reasonable suspicion” that the company’s terms and conditions were intentionally restrictive. For example, some clauses attempted to limit the six-month implied warranty of quality that every South African consumer is entitled to. Furthermore, the investigation revealed that the company often ignored requests for refunds or repairs, even when the defects were clearly present at the time of sale.
Understanding the R2.5 Million Fine and Redress
As part of the settlement, We Buy Cars must pay an administrative R2.5 million fine directly to the National Revenue Fund. However, the financial implications do not end there. The Tribunal has also ordered the company to pay a total of R3,419,971.83 in refunds to 31 specific consumers.
These 31 individuals represent the core of the investigation’s findings. Each of these buyers purchased a vehicle that manifested significant mechanical issues within the first few months. Instead of receiving the help they deserved, they were initially turned away. Now, thanks to the intervention of the NCC, they will finally receive their money back. This total amount covers the original purchase prices and, in some cases, the costs incurred for attempted repairs.
| Redress Category | Amount / Metric |
| Administrative Fine | R2,500,000.00 |
| Total Consumer Refunds | R3,419,971.83 |
| Number of Beneficiaries | 31 Consumers |
| Commitment to Jobs | 300 new positions |
The “Voetstoots” Trap and Prohibited Clauses
One of the most critical aspects of this case involves the use of “unfair, unreasonable, and unjust” clauses. The National Consumer Commission found that We Buy Cars used language in its contracts that essentially tried to sell cars “as is” (voetstoots). Under the Consumer Protection Act, selling a vehicle to a consumer without a warranty is generally prohibited unless specific conditions are met.
One specific clause used by the retailer stated that buyers acknowledged the vehicle might need repairs to its engine or gearbox despite whatever was listed in the Dekra report. The Tribunal found this clause to be a direct violation of Section 56(2) of the CPA. This section creates an implied warranty of quality for six months. By trying to force consumers to waive this right, the company engaged in prohibited conduct.
Section 56 of the Consumer Protection Act: Your Rights
This case serves as a vital reminder for all South African motorists. According to Section 56 of the CPA, every consumer has the right to receive goods that:
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Are reasonably suitable for the purpose for which they are generally intended.
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Are of good quality, in good working order, and free of any defects.
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Will be usable and durable for a reasonable period.
If a used car fails to meet these standards within six months of delivery, the consumer can return the vehicle. At the consumer’s discretion, the supplier must then repair it, replace it, or refund the full purchase price. As the Webuycars fined R2.5 million and ordered to refund customers over CPA violations story shows, a retailer cannot use a contract to take these rights away from you.
Future Commitments: Jobs and Education
Beyond the financial penalties, the settlement includes a commitment to social and operational improvements. We Buy Cars has agreed to create 300 new job opportunities over the next five years. These roles are intended to improve customer service capacity and ensure that future consumer complaints are handled more efficiently.
Additionally, the company will invest a minimum of R500,000 into a Consumer Awareness Programme. This initiative aims to educate South Africans about their rights when buying pre-owned vehicles. It will also clarify the obligations that suppliers have under the Consumer Protection Act. This move is seen as an effort by the retailer to rebuild trust with a wary public.
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Conclusion: A Victory for South African Consumers
The news that Webuycars fined R2.5 million and ordered to refund customers over CPA violations is a massive win for the “little guy.” It sends a clear signal to every used car retailer in the country that deceptive contracts will not be tolerated. While buying a used car always carries some risk, the law ensures that you are protected against being sold “lemons” under unfair terms.
As we move into 2026, the National Consumer Commission remains vigilant. Motorists are encouraged to keep all their sales documents and to report any supplier that refuses to honor the six-month implied warranty. This landmark ruling has set a new precedent for transparency and accountability in the South African motor industry.
Mainstream Media References
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National Consumer Commission (Official)
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Title: We Buy Cars settles complaints, agrees to pay R2.5 million fine and R3.4 million in consumer redress
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SABC News
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Title: We Buy Cars has been fined a R2.5 million fine
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Link: https://www.sabcnews.com/sabcnews/we-buy-cars-has-been-fined-a-r2-5-million-fine/
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The Citizen
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Title: Webuycars agrees to pay R2.5 million fine and refund 31 consumers R3.4 million
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