Cartrack will pay an administrative fine of R5 million and refund a total of R5,101,225 to affected consumers. Image: Supplied
NCC
1Min
South Africa
Cartrack will compensate affected customers, scrap certain contracts, and overhaul its terms to comply with consumer law.
Cartrack has agreed to settle 167 consumer complaints without admitting liability, choosing to avoid prolonged legal proceedings. The remaining cases were assessed by the National Consumer Commission (NCC), which found no evidence of contraventions in those instances.
The settlement stems from an NCC investigation into 210 complaints alleging that Cartrack failed to provide adequate remedies to customers. The Commission determined that some provisions in the company’s sales agreements were not aligned with the Consumer Protection Act (CPA).
The National Consumer Tribunal confirmed that a settlement agreement between the NCC and Cartrack has been finalised.
Under the agreement, Cartrack will pay an administrative fine of R5 million and refund a total of R5,101,225 to affected consumers. It will also cancel impacted contracts without imposing cancellation fees.
In addition, the company has committed to revising its terms and conditions to ensure clarity and compliance with consumer protection laws.
Acting Commissioner Hardin Ratshisusu said the settlement brings closure to a lengthy investigation and ensures that affected consumers receive appropriate redress. He also welcomed Cartrack’s cooperation and its commitment to improving its business practices.
