The North West Department of Economic Development, Environment, Conservation and Tourism (DEDECT), through the North West Consumer Affairs Court, has successfully facilitated a ruling ordering the partial refund of more than R319 000 to a consumer following the purchase of a defective motor vehicle, highlighting the importance of consumer protection in building a fair, accountable and inclusive economy.
The ruling serves as an important reminder that consumers are protected by law and are entitled to receive safe goods, of good quality and fit for purpose, as provided for in the Consumer Protection Act.
Ms Theresa Stander purchased a 2011 Toyota Prado VX 4.0 V6 from Agenbag Motors in Klerksdorp for an amount of R370 000 on 11 January 2024 and took delivery of the vehicle on the same day. However, within four kilometres of leaving the dealership, she noticed that the vehicle was vibrating. The following day, she observed that the vehicle was hanging to the left and that the traction control warning light remained illuminated while the vehicle was in motion.
The defects were immediately reported to Agenbag Motors, and the vehicle was returned on 25 January 2024 to allow the dealership an opportunity to repair the defects. Although the vehicle was returned to Ms Stander on 8 April 2024 with assurances that the defects had been remedied, a subsequent test drive revealed that the same defects persisted.
Ms Stander subsequently returned the vehicle and requested the cancellation of the sale agreement and a refund of the purchase price.
In terms of the Consumer Protection Act, where a supplier has been allowed to repair defective goods, and the same defects recur within three months or additional defects are discovered, the consumer is entitled to demand a replacement or refund. Ms Stander was therefore legally entitled to seek a refund.
The matter was initially mediated by the Consumer Affairs Office. However, mediation efforts were unsuccessful after the parties failed to reach an amicable settlement. The case was thereafter referred to the North West Consumer Affairs Court for adjudication.
During the proceedings, the Consumer Protector, Mr Seile Letsogo, presented evidence from both Mr and Ms Stander, as well as expert testimony from Mr Lesley Maranda, Technical Case Manager at the Motor Industry Ombudsman of South Africa (MIOSA). The expert evidence concluded that the vehicle was unsafe due to underlying mechanical defects and could not be regarded as mechanically sound or compliant with the expected performance and safety standards.
Agenbag Motors argued that Ms Stander was not entitled to unilaterally cancel the contract, submitting that she had requested the dealership to negotiate the purchase of the vehicle on her behalf after identifying it at Speedy Car Sales.
After considering the evidence and arguments presented by both parties, the North West Consumer Affairs Court ruled in favour of the consumer and ordered that the sale agreement between the parties be declared cancelled. Agenbag Motors must refund Ms Stander an amount of R319 465, after deducting R50 535 for usage of the vehicle. Agenbag Motors must pay Ms Stander interest at 11% on the amount of R30 000, calculated from 11 January 2024, being the profit derived from the sale of the motor vehicle.
The MEC for Economic Development, Environment, Conservation and Tourism, Bitsa Lenkopane, said consumers work hard for their money and deserve to receive products that are safe, reliable and of acceptable quality. Purchasing a motor vehicle is one of the biggest financial commitments many people make, and no consumer should be left carrying the financial burden of defective goods.
“An informed and protected consumer contributes to a stronger and more inclusive economy. When consumers are empowered to seek justice, businesses are equally encouraged to uphold higher standards of accountability and service. This is how we build a fair marketplace that benefits everyone. The Department remains committed to ensuring that consumer rights are not only protected on paper but realised in practice,” said MEC Lenkopane.
She urged consumers not to feel powerless when they are sold defective goods or when businesses fail to honour their obligations. “The Consumer Affairs Office and the Consumer Affairs Court exist to ensure that consumers are heard and that fair outcomes are pursued through due process. We encourage residents of the North West Province to make use of these services whenever their rights are infringed,” she said.
Issued by the Department of Economic Development, Environment, Conservation and Tourism
For inquiries, contact:
Mr. Jeremiah Matebesi
072 333 0325
Email: JeremiahMatebesi@nwpg.gov.za
Twitter: @nwpg_dedect / Facebook: @nwdedect