When your brand new car turns into a nightmare – the CPA can help
The purpose of the Consumer Protection Act (CPA) is to ‘promote and advance the social and economic welfare of consumers in South Africa by establishing a legal framework for the achievement and maintenance of a consumer market that is fair, accessible, efficient, sustainable and responsible for the benefit of consumers.’ Any consumer can invoke the provisions of the CPA but they must be able to show that the supplier or retailer in question has breached the CPA.
In the recent case of Motus Corporation (Pty) Ltd v Wentzel the Supreme Court of Appeal (SCA) provided much needed commentary on the process of invoking the provisions of the CPA. In this matter Ms Wentzel relied on Sections 55(2) and 56(2) and (3) which deal with breach of warranty and refunds for defective goods.
Ms Wentzel purchased a new motor vehicle from Renault on 7 December 2017 but reported constant problems. Between the date of purchase and February 2018 Ms Wentzel took the vehicle into Renault on a further four occasions. On each occasion her complaints were attended to by Renault all at no charge. Renault confirmed that all of the problems raised had been properly attended to. One of her main complaints had been that the Bluetooth system did not work properly. Finally in May 2018 she launched an application in the High Court alleging that Renault had breached the provisions of the CPA, specifically Sections 56(2) and (3).
The High Court granted Ms Wentzel the relief sought and ordered Renault to refund her an amount of R256 956.84 which included all the costs associated with financing the vehicle. The actual purchase price of the vehicle had only been R176 400. Renault appealed the judgement to the SCA and were ultimately successful.
The SCA analysed consumer’s rights particularly in reference to Section 55(2) and 56 of the CPA. Section 55(2) provides that every consumer has the right to receive goods that are free from defects, and which are useable for a reasonable period of time. Section 56(2) gives consumers the right to return goods, within 6 months of delivery of the goods, to the suppliers, without penalty, if the goods fail to satisfy the requirements and standards contemplated in Section 55. Section 56(3) allows a consumer to return goods after a supplier has repaired the goods, and if within 3 months after the repair, the defect, failure or unsafe feature has not been remedied or a new defect is discovered, the consumer is entitled to a refund or replacement of the goods. The SCA discussed what constitutes a “defect” and held that not every small fault constitutes a defect. In this particular case the SCA held that the Bluetooth system was merely an accessory to the motor vehicle and did not render the motor vehicle less acceptable or less useful than one would reasonably expect.
The SCA provided important guidance on Section 56(3) by finding that Ms Wentzel had not reported any defects or made any further complaints after 28 February 2018. The Court held that the reporting of these defects is necessary to enforce the protection contained in that section. The Court accordingly found that the three-month period within which Ms Wentzel was obliged to report any new or continuing defects had expired by the time she launched her application in the High Court.
This case raises the dangers of simply assuming that the CPA will protect you no matter what. Consumers need to be aware that not every complaint falls within the scope of the CPA. Before demanding a refund or replacement of goods, consumers need to establish that their complaint falls within the scope of the CPA and that they pursue their remedies timeously and in a legally correct manner. We recommend that any consumer who believes that they are entitled to a refund or replacement of good in terms of the provisions of Section 55 and 56 of the CPA, approach an attorney to advise you of your rights and obligations.
Contributor: Ian Patterson-Roberts
Email: Ian@prwattorneys.co.za
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