(Foto: Cartrack)
The National Consumer Commission (NCC) achieved a huge victory for consumers after the company Cartrack agreed to pay more than R10 million as part of a settlement agreement. This agreement follows a series of complaints about contracts that allegedly did not comply with the Consumer Protection Act.
The national consumer tribunal upheld the settlement agreement between the NVK and Cartrack (Pty) Ltd. Wednesday officially ratified and made it a consent order.
According to the terms of this agreement, Cartrack will have to pay an administrative fine of R5 million. The company also undertook to repay a further sum of R5 101 225 to the affected consumers.
NPC spokesperson Phetho Ntaba confirmed the details of the settlement and explained that the road to this decision began earlier this month.
“The NPC referred the matter to the tribunal on 2 March, and after careful consideration the tribunal confirmed the settlement agreement on 25 March and made it a consent order in terms of section 74(1) of the Consumer Protection Act.”
The case stems from an investigation by the NPC after the commission received a total of 210 complaints from consumers over a period of time. These consumers argued that Cartrack failed to provide them with the necessary legal assistance or remedies.
During the investigation, the NCA found that the terms and conditions of Cartrack’s sales arrangements were in several cases contrary to the law.
To avoid lengthy lawsuits, Cartrack agreed to settle 167 of the complaints without admission of liability. For the remaining complaints, the NPC was unable to establish a violation. Cartrack further agreed to review and adjust its terms and conditions so that they are clear and in accordance with the law.
In addition to the fines and refunds, Cartrack must now also cancel all affected contracts without claiming any cancellation fees from the customers. The company has also committed to amend its general terms and conditions so that they are consistent with the provisions of the law.
Hardin Ratshisusu, the acting commissioner of the NPC, welcomed the ruling and said it brings closure to those who have been harmed.
“This settlement concludes a protracted investigation following complaints involving Cartrack. Consumers affected by this will receive compensation through this settlement.
“The NPC further welcomes Cartrack’s commitment to amend their terms and conditions to ensure compliance with the law and acknowledges Cartrack’s full cooperation,” Ratshisusu said.