According to statement by the NCC, it had received complaints from 210 consumers over a period of time.
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Cartrack agreed to pay R5 million in administrative fines and refund over R5,1 million to customers following complaints lodged with the National Consumer Commission (NCC) that it had failed to provide remedies to consumers.
According to statement by the NCC, it had received complaints from 210 consumers over a period of time.
"The NCC investigated the complaints and found that the terms and conditions of the sale agreements were inconsistent with the Consumer Protection Act (CPA) on some complaints.
"Cartrack agreed to settle 167 complaints without admission of liability and to avoid lengthy legal proceedings, whilst the balance of the complaints, the NCC could not establish a contravention. Cartrack also agreed to enhance their terms and conditions to remove any potential vagueness," said the statement.
The National Consumer Tribunal confirmed the settlement agreement between the NCC and Cartrack.
The NCC referred the matter to the tribunal on March 2 and after consideration, the tribunal confirmed the settlement agreement on Wednesday, making it a consent order in terms of Section 74 (1) of the CPA.
In terms of the settlement, Cartrack has also agreed to cancel affected contracts without charging a cancellation fee.
In welcoming the consent order as granted by the tribunal, acting commissioner, Hardin Ratshisusu, said: "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 committement to amend their terms and conditions to ensure compliance with the CPA and acknowledges Cartrack's full co-operation."