National Consumer Commission v BAJ Auto Investments (Pty) Ltd t/a Auto Investments Vanderbijlpark (NCT/295854/2023/73(2)(b)) [2024] ZANCT 56 (10 October 2024)

National Consumer Commission v BAJ Auto Investments (Pty) Ltd t/a Auto Investments Vanderbijlpark (NCT/295854/2023/73(2)(b)) [2024] ZANCT 56 (10 October 2024)

The Tribunal found that the respondent contravened sections 51(1)(a) and (b) and 56(2)(a) to (b) read with 55(2)(a) to (c) of the CPA by making the transaction subject to a mechanical warranty waiver that unlawfully deprived the consumer of statutory rights. The vehicle failed within five days of delivery, indicating it was not of good quality or durable as required by the CPA. The respondent's arguments regarding the age and mileage of the vehicle were rejected, as the statutory protections apply regardless of these factors. The Tribunal dismissed the respondent's points in limine regarding hearsay and unauthorized investigation, finding the affidavits and investigation report...

Citation
[2024] ZANCT 56
Parties
Applicant: National Consumer Commission; Respondent: BAJ Auto Investments (Pty) Ltd t/a Auto Investments Vanderbijlpark
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
10 October 2024
Case Number
NCT/295854/2023/73(2)(b)
Procedural Posture
Review Application / Merits and Sanction
Outcome
Application granted in part. The respondent is ordered to refund the complainant and pay an administrative penalty. No interdict or costs order granted.
Judges
M Peenze, A Potwana, S Mbhele
Legal Topics
Consumer Protection Act, Prohibited Conduct, Warranty Waiver, Refund of Purchase Price, Administrative Penalty
Commercial and Corporate Civil Procedure Consumer Protection Act Prohibited Conduct Warranty Waiver Refund of Purchase Price Administrative Penalty

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Parties

National Consumer Commission

Applicant

BAJ Auto Investments (Pty) Ltd t/a Auto Investments Vanderbijlpark

Respondent

Procedural Posture

Review Application / Merits and Sanction

Legal Issues

  1. 1 Whether the respondent contravened sections 51(1)(a) and (b) and 56(2)(a) to (b) read with 55(2)(a) to (c) of the Consumer Protection Act.
  2. 2 Whether the mechanical warranty waiver certificate constituted prohibited conduct under the CPA.
  3. 3 Whether the complainant is entitled to a refund of the purchase price for the defective vehicle.

Ratio Decidendi

The Tribunal found that the respondent contravened sections 51(1)(a) and (b) and 56(2)(a) to (b) read with 55(2)(a) to (c) of the CPA by making the transaction subject to a mechanical warranty waiver that unlawfully deprived the consumer of statutory rights. The vehicle failed within five days of delivery, indicating it was not of good quality or durable as required by the CPA. The respondent's arguments regarding the age and mileage of the vehicle were rejected, as the statutory protections apply regardless of these factors. The Tribunal dismissed the respondent's points in limine regarding hearsay and unauthorized investigation, finding the affidavits and investigation report...

Court Disposition

Application granted in part. The respondent is ordered to refund the complainant and pay an administrative penalty. No interdict or costs order granted.

Orders

  • The respondent's contravention of sections 51(1)(a) and (b) and 56(2)(a) to (b) read with 55(2)(a) to (c) of the CPA is declared prohibited conduct.
  • The respondent must refund the complainant R277,899.00 within 14 business days of the order.