Katlego Motors Ordered to Refund a Complainant Following Intervention by the CCA

The Competition and Consumer Tribunal has ordered Katlego Motors in Mogoditshane to refund a complainant P37, 000 for a defective vehicle it sold.

The case was referred to the Tribunal by the Competition and Consumer Authority (CCA) after concluding its investigations which revealed that Katlego Motors Pty Ltd contravened the provisions of section 15(1) of the Consumer Protection Act by engaging in an unfair business practice through the sale of goods which are not of good quality, in good working order and free of defects without informing the purchaser of the state of such goods.

The facts of the case are that on 21^st January 2020, the Authority received a complaint from Game Nthobatsang who lives in Jwaneng. She alleged that on the 20^th September 2019, she travelled to Mogoditshane to buy an Audi A3 vehicle from Katlego Motors for the sum of P37 000.000.  Nthobatsang was given the vehicle and travelled back to Jwaneng, and the vehicle developed a mechanical problem along the way.

The vehicle would later fail a roadworthiness test at the Department of Road Transport and Safety (DRTS) which was conducted in order to register the vehicle and therefore could not be registered. The DRTS report indicated defects on the vehicle being; front shock and rear shock absorbers; control arm bushes; gear box (third, fourth and fifth gears not engaging); secure radio and engine light. 

The vehicle was eventually returned to Katlego Motors and the complainant requested a refund. She was promised another Audi A3 which was to arrive within a week. The complainant was loaned a courtesy car which she was to use pending delivery of another Audi A3. However, the said vehicle was never delivered to Ms Nthobatsang and she eventually registered a complaint with the Authority.

Investigations were carried out by the Authority in an effort to establish whether an unfair business practice was committed. The DRTS officer who tested the vehicle was interviewed and he confirmed that he tested the Audi A3 vehicle brought by the complainant, and that the vehicle failed the road worthiness test. The parties failed to reach an amicable solution to their dispute and the Authority conducted further investigations into the matter.

The Authority concluded, after investigations, that the respondent’s conduct amounted to an unfair business practice in contravention of section 15(1) of the Consumer Protection Act. The Authority then referred the complaint to the Tribunal against Katlego Motors in terms of section 36(1)(a) of the Act. The Authority had sought an order declaring that Katlego Motors had committed an unfair business practice against Game Nthobatsang, that she be refunded the sum of P37 000.00; that she return the courtesy car loaned to her by the respondent; as well as costs of the suit.

Through a default decision (because Katlego Motors failed to respond within the stipulated timelines) the Tribunal ordered that the complainant be refunded P37 000 within 21 days and for her to return the courtesy car with immediate effect. There was no order as to costs.