In a significant victory for consumer rights, the National Consumer Tribunal has confirmed a settlement agreement between the National Consumer Commission (NCC) and vehicle tracking giant Cartrack (Pty) Ltd.
The agreement was finalised on 25 March 2026, concludes a lengthy investigation into the company's business practices and contract terms.
The settlement follows 210 complaints lodged with the NCC, where consumers alleged that Cartrack failed to provide necessary remedies. While the NCC could not establish contraventions for all claims, they found that Cartrack's terms and conditions were inconsistent with the Consumer Protection Act (CPA) in several instances.
The cost of non-compliance
As part of the consent order, Cartrack has agreed to a multi-million rand payout and significant operational changes. The financial impact of the settlement is substantial, starting with an administrative fine of R5,000,000 payable to the National Revenue Fund.
Furthermore, the company will refund a total sum of R5,101,225 to the consumers affected by these practices. Beyond the monetary penalties, Cartrack is required to cancel all affected contracts without charging any cancellation fees and must formally amend its terms and conditions to ensure they are fully consistent with the provisions of the CPA.
A path toward better business
The NCC referred the matter to the Tribunal earlier this month on March 2,2026. Cartrack chose to settle 167 of the complaints without an admission of liability, a move intended to avoid protracted legal battles. In conjunction with the settlement, the company has committed to enhancing its sale agreements to remove any potential vagueness that previously led to consumer disputes.
Acting Commissioner Mr Hardin Ratshisusu welcomed the resolution, noting that the settlement provides much-needed redress for those impacted. He highlighted that the NCC welcomes Cartrack's commitment to transparency and acknowledges the company's full cooperation throughout the process.
The move signals a shift for the tracking company toward more transparent consumer relations, ensuring that future sale agreements are clear, fair, and legally sound.