Cartrack fined R5 million over consumer complaints, must refund millions

2026-03-28 - 07:10

The National Consumer Tribunal has confirmed a settlement agreement entered into between the National Consumer Commission (NCC) and Cartrack. The NCC referred the matter to the Tribunal on 2 March 2026, and after consideration, the Tribunal confirmed the settlement agreement on 25 March 2026, making it a consent order in terms of Section 74(1) of the Consumer Protection Act (CPA). The matter reportedly stems from Cartrack’s offer of up to R150 000 in compensation to consumers whose stolen or hijacked vehicles could not be found. However, the compensation would be paid out only if the consumer could prove they had called the company every three months to check if their vehicle trackers were working. ALSO READ: NCC investigates nine sanitary pad suppliers amid reports of harmful chemicals Last year, Cartrack spokesperson Lauren Human told Sowetan that the company could only reward customers who complied with its terms and conditions. “When a vehicle is out of network coverage, preventing us from contacting the tracking device, we will not know whether there is a technical issue,” Human was quoted as saying. Cartrack fined On Friday, the NCC confirmed that Cartrack had agreed to pay an administrative fine of R5 million, refund R5 101 225 to consumers and cancel affected contracts without charging a cancellation fee. Cartrack further agreed to amend its terms and conditions to ensure consistency with the provisions of the CPA. “Over a period of time, the NCC had received complaints from 210 consumers complaining that Cartrack failed to provide remedies to consumers. The NCC investigated the complaints lodged by the consumers and found that the terms and conditions of the sale agreements were inconsistent with the CPA in some complaints,” said NCC spokesperson Phetho Ntaba. “Cartrack agreed to settle 167 complaints without admission of liability and to avoid lengthy legal proceedings, whilst on the balance of the complaints, the NCC could not establish a contravention.” Cartrack also agreed to enhance its Terms and Conditions to remove any potential vagueness. “This settlement concludes a lengthy investigation into complaints involving Cartrack. Consumers who were affected by the conduct will, through this settlement, receive redress. The NCC further welcomes Cartrack’s commitment to amend its terms and conditions to ensure compliance with the CPA and acknowledges Cartrack’s full cooperation,” said acting commissioner Hardin Ratshisusu. READ NEXT: Nissan hit by massive car recall as NCC notes surge in 2025 defect notices