WeBuyCars has been fined R2.5 million and ordered to repay more than R3.4 million to consumers following a settlement with the National Consumer Commission (NCC) over violations of the Consumer Protection Act (CPA).

The National Consumer Tribunal confirmed the settlement as a consent order on 19 December giving it the force of law.

According to the NCC the investigation followed complaints from consumers who alleged that WeBuyCars’ warranty provisions and sale agreements unlawfully limited their statutory rights under the CPA. The probe examined whether the company’s contractual terms complied with consumer protection legislation.

Under the consent order WeBuyCars must refund a total of R3 419 971.83 to 31 affected consumers whose complaints were upheld. The company is also required to pay an administrative fine of R2.5 million.

In addition to the financial penalties the settlement compels WeBuyCars to amend its terms and conditions to ensure compliance with the Consumer Protection Act. The company must also implement a consumer awareness programme aimed at educating buyers about their rights and obligations when purchasing pre-owned vehicles.

The NCC said the agreement brings a three-year investigation to an end and reinforces the obligation on vehicle dealers to ensure that warranty clauses and sale agreements do not undermine consumer protections guaranteed by law.

WeBuyCars said the settlement resolves legacy matters identified by the NCC and allows the business to move forward with improved compliance measures. The company stated that it had cooperated with the regulator throughout the investigation and had already taken steps to enhance its consumer-facing processes.

The case highlights increased regulatory scrutiny in South Africa’s second-hand vehicle market where consumer complaints often relate to warranty exclusions and post-sale remedies. Regulators have repeatedly warned that contractual terms may not override protections provided for in the Consumer Protection Act.