across the bar

Consumer watchdog's bark turns into a bite

by Ashley - Posted 05 September 2011

The Consumer Protection Act affords consumers specific forms of relief when goods they purchase are defective.

The National Consumer Commission recently gave BMW South Africa  and one of its Johannesburg dealerships 15 days to replace a customer’s defective E 82 135i Coupe, worth R 450 000.00 or face being fined 10% of its annual turnover.  The Commission further ordered BMW South Africa to replace a broken armrest  on a 2008 Z4 M Coupe or risk being fined R 500 000.00.

A Fiat dealership was recently ordered to refund a customer or replace a Fiat Punto Active which had problems with the engine and tachometer a day after it was delivered.

Although BMW and the Fiat Dealership have stated that they will file objections to the Commission’s decision it is clear that the Commission is flexing its muscles and will in future not be shy to dish out hefty fines.

As a business owner it is important to ensure that your company’s policies, procedures and documentation comply with the new act.