Motor Vehicle Dealerships Fined for Violations of the Consumer Protection Act

Thirty-two (32) motor vehicle dealerships in Mogoditshane have been charged a combined total of P229,000.00 for contravening various provisions of the Consumer Protection Act. These contraventions included but not limited to warranty labelling, failure to display prices, and failure to label used goods. The charges were administered through the Botswana Police Service and Bye-law Officers following joint compliance inspections in Mogoditshane organised by the Competition and Consumer Authority (CCA).
 
Four (4) compliance inspections were conducted between July and August on various dates in Mogoditshane, focusing on motor vehicle dealerships suspected of violating the Consumer Protection Act and operating without valid licenses in contravention of the Trade Act and Mogoditshane District Council Bye-Law Regulations. 
The key focus areas of the inspections were, assessing compliance with Sections 11, 13 and 16 of the Consumer Protection Act which require suppliers to display the prices of goods and services in Botswana Pula currency clearly and legibly, provision of statutory warranty on every new or reconditioned part installed during any repair or maintenance work and labelling of goods as new or used. 

The inspections revealed multiple conducts of non-compliance with the Consumer Protection and Trade Acts which included businesses operating without valid or relevant trading licenses, selling vehicles without displaying prices, failure to label motor vehicles as new or used, and non-compliance with statutory warranty. 
With regards to warranty, members of the public are informed that, it is within the law to return goods to a supplier in their merchantable or original state, within six (6) months after the delivery, if such goods fail to satisfy the requirements and standards. The law provides that, where a consumer has returned goods to a supplier, the supplier is compelled to repair or replace the defective goods or refund the consumer the amount already paid as consideration for the goods.

The compliance rate of the inspected motor vehicle dealerships stood at 42%, revealing a systemic disregard for compliance standards. This is further demonstrated by the high number of complaints the CCA continues to be inundated with in relation to the purchase of second-hand motor vehicles. From January 2025 to date, the Authority has received 119 consumer complaints in this sector. 
The CCA will increase the frequency of compliance inspections across the country to curb unfair trade practices to ensure compliance with the Consumer Protection Act. It will further enhance awareness for businesses on provisions of the Act, especially regarding pricing, labelling and statutory warranty obligations. 
Issued by CCA - 25/9/2025