A lengthy consumer dispute involving vehicle tracking company has reached its conclusion after the National Consumer Tribunal confirmed a settlement agreement that will see millions of rands returned to affected customers and changes made to company contracts, Cape {town} Etc reports.
The ruling, which was completed this week on 25 March, came after a referral from the National Consumer Commission (NCC) earlier this month.
With the Tribunal’s approval, the agreement now has the status of a consent order under Section 74(1) of the Consumer Protection Act (CPA), making its terms legally binding.
At the centre of the case were complaints from consumers who argued they struggled to obtain remedies linked to service agreements.
Under the confirmed agreement, Cartrack will pay an administrative fine of R5 million and refund a combined R5 101 225 to affected consumers.
The company has also committed to cancelling impacted contracts without charging cancellation fees and revising its terms and conditions to better align with CPA requirements.
The disagreement started from complaints made by 210 customers over time. After looking into the matter, the NCC found that in some cases, the terms in the sale agreements did not match the rules for protecting consumers.
As detailed by the National Consumer Commission in its statement, Cartrack agreed to resolve 167 complaints through settlement, without admitting liability, in an effort to avoid prolonged legal proceedings. For the remaining matters, investigators found insufficient evidence to establish a contravention of the Act.
Beyond financial redress, the agreement places strong emphasis on future compliance, as Cartrack has undertaken to revise its contractual wording to remove ambiguity and ensure customers receive clearer information about their rights and obligations.
Welcoming the Tribunal’s confirmation of the consent order, Acting Commissioner Hardin Ratshisusu said the resolution marked the end of an extensive investigation while delivering tangible outcomes for affected customers.
‘This settlement concludes a lengthy investigation on complaints involving Cartrack. Consumers that were affected by the conduct will, through this settlement, receive redress. The NCC further welcomes Cartrack`s commitment to amend their terms and condisitions to ensure compliance with the CPA and acknowledges Cartrack`s full co-operation.’
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Picture: Cartrack
