R5 Million Penalty: Cartrack Forced To Pay Millions Back To Customers After Tribunal Ruling

The National Consumer Tribunal has officially ratified a settlement agreement between the National Consumer Commission (NCC) and Cartrack, bringing an end to a prolonged consumer dispute.

The matter was referred to the Tribunal on 2 March 2026. Following review, the agreement was confirmed on 25 March 2026 and is now legally binding as a consent order under Section 74(1) of the Consumer Protection Act.

Tracking Compensation Policy Sparks Consumer Complaints

The case centres on Cartrack’s previous offer of compensation of up to R150 000 for clients whose vehicles were stolen or hijacked but not recovered.

However, payouts were conditional. Customers had to prove they contacted the company every three months to verify that their tracking devices were functioning.

Cartrack spokesperson Lauren Human previously defended the policy, stating: “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.”

The NCC revealed it had received 210 complaints from consumers who alleged they were denied assistance due to these conditions.

“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 Hit with R5 Million Fine and Ordered to Refund Customers

As part of the agreement, the car tracking company will pay an administrative fine of R5 million and refund a total of R5 101 225 to affected customers. The company will also cancel impacted contracts without imposing cancellation penalties.

In addition, Cartrack has committed to revising its terms and conditions to ensure they align fully with consumer protection laws and eliminate any unclear provisions.

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“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,” Ntaba added.

Acting commissioner Hardin Ratshisusu welcomed the outcome. “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,” he said.