Your rights on a vehicle tracker contract: term, renewal and cancelling

Under the Consumer Protection Act, a fixed-term consumer contract such as a tracker subscription is capped at 24 months in the ordinary case, can be cancelled at any time on 20 business days' written notice, and must be followed by a written renewal notice before it ends. A reasonable cancellation penalty may apply.

Does the Consumer Protection Act cover a tracker contract?

A tracker is a device plus a monitoring subscription. When you sign for it, you make an agreement with a supplier to receive goods and services. The Consumer Protection Act, 2008 (Act 68 of 2008) sets rules for consumer agreements, and section 14 deals with those that run for a fixed term.

Two limits are worth knowing. Section 14(1) says the section does not apply to transactions between juristic persons, regardless of their annual turnover or asset value, so a contract between two companies is outside it. And the Act is a general law: whether it covers your particular contract depends on the facts. If you are unsure, the National Consumer Commission or an attorney can say.

How long can the contract be?

Section 14(2)(a) says a fixed term "must not exceed the maximum period, if any, prescribed". The regulations to the Act (published on 1 April 2011) set it in regulation 5(1): a fixed-term consumer agreement may run for a maximum of 24 months from the date the consumer signs it, unless:

• a longer period is expressly agreed with you and the supplier can show a demonstrable financial benefit to you;
• another regulation provides differently for a specific type of agreement, consumer, sector or industry; or
• an industry code under section 82 of the Act provides differently.

So a longer term is not banned, but it must be expressly agreed and justified. If the contract in front of you is for longer than 24 months, ask the supplier what the demonstrable financial benefit is, and ask for the answer in writing.

Can I cancel early?

Yes, in the cases the Act describes. Section 14(2)(b)(i) says that, despite anything in the contract to the contrary, you may cancel a fixed-term agreement:

• on the expiry of its fixed term, without penalty or charge, or
• at any other time, by giving the supplier 20 business days' notice in writing or another recorded manner and form.

The supplier has a right too. It may cancel 20 business days after giving written notice of a material failure by you to comply with the agreement, if you have not put it right within that time (section 14(2)(b)(ii)).

What can the supplier charge if I cancel early?

Section 14(3) sets two things.

• You remain liable for any amounts you owe up to the date of cancellation.
• The supplier may impose "a reasonable cancellation penalty" for goods supplied, services provided or discounts granted to you in expectation of the agreement running its full term, and it must credit you with any amount that remains your property at the date of cancellation.

Regulation 5(2) says a reasonable charge may not exceed a reasonable amount, taking into account factors that include the amount you still owe, the value of the transaction up to cancellation, the value of goods you keep or return, the original length of the agreement, the length of your notice, and the general practice of the industry. Regulation 5(3) adds that a supplier "may not charge a charge which would have the effect of negating the consumer's right to cancel".

So a charge is allowed, but not one that makes cancelling pointless. If a supplier asks for the whole remaining balance, ask it to show how the figure meets those factors.

What must happen when the term ends?

Section 14(2)(c) says the supplier must tell you in writing, or another recordable form, between 40 and 80 business days before the expiry date, that the term is about to end. The notice must cover any material changes that would apply if the agreement is renewed or carries on, and the options open to you.

Under section 14(2)(d), on expiry the agreement continues automatically on a month-to-month basis, subject to those changes, unless you expressly:

• direct the supplier to end the agreement on the expiry date; or
• agree to a renewal for a further fixed term.

So if you do not want the subscription to carry on, say so in writing before the end date. Keep proof.

Is there a cooling-off period?

Section 16 gives a right to rescind a transaction that resulted from direct marketing, without reason or penalty, by written or other recorded notice within five business days after the later of the date the agreement was concluded and the date goods were delivered. The supplier must return any payment within 15 business days after receiving the notice, or the goods, as the section sets out. The section does not apply where section 44 of the Electronic Communications and Transactions Act applies to the transaction.

Whether your sale was direct marketing, and which cooling-off rule applies, depends on how it was sold. Ask the supplier which one applies and keep a record of the answer.

What about the small print?

Several sections work together.

• Plain language. Section 22 requires a notice or document that the Act requires to be given to you to be in plain language, meaning one an ordinary consumer with average literacy skills and minimal experience of the service could understand without undue effort.
• Unfair terms. Section 48 says a supplier must not offer or supply services on terms that are unfair, unreasonable or unjust. A term is unfair if, among other things, it is excessively one-sided in favour of someone other than the consumer, or so adverse to the consumer as to be inequitable.
• Limits on liability. Section 49 says any term that limits the supplier's risk or liability, makes you assume a risk or liability, requires you to indemnify the supplier, or has you acknowledge a fact, must be drawn to your attention in plain language and in a conspicuous way, before you sign or pay, and you must have an adequate opportunity to understand it.

Look in the contract for clauses on what happens if the device is jammed, removed or stolen along with the vehicle, who owns the device, what happens to it after cancellation, and what the supplier is not responsible for. If a term of that kind was not clearly pointed out to you, you can raise section 49 with the supplier.

What should I ask the provider before I sign?

1. How long is the fixed term, and what is the end date?
2. Is the fitting free, charged, or built into the contract?
3. What happens if I cancel early? How is the charge worked out?
4. How will you tell me the term is ending, and what happens if I do nothing?
5. Does my insurer or lender need this tracker to stay active? If so, what happens if the contract ends?
6. Who owns the device, and who removes it?

Do not rely on a verbal reply. Ask for the answers in writing.

Where do I complain?

Start with the supplier, in writing. If that does not work, section 69 of the Act lists your options: refer the matter to an ombud with jurisdiction, or to an accredited industry ombud, a consumer court, another alternative dispute resolution agent, or file a complaint with the National Consumer Commission. Section 70 says a consumer may seek to resolve a dispute through an alternative dispute resolution agent.

The National Consumer Commission takes complaints through an online portal, or by phone on 012 065 1940. It asks for the date of the transaction, the date the dispute arose, proof of purchase, the steps you have taken and your communication with the supplier.

If your concern is how your location data is handled rather than the contract, see location data and your privacy. If your concern is the policy condition, see what a tracking condition means.

What does Olvian do?

Olvian is a lead-referral service. You ask once, and your request goes to licensed providers who pay Olvian a fee and call you back. Olvian is not a tracker supplier, insurer, broker or adviser. It does not set contract terms. The provider who calls you explains its contract.

Sources

Checked on 31 October 2026. Olvian is not a financial services provider and this guide is information, not advice.

• Consumer Protection Act 68 of 2008, Government Gazette 32186: sections 14, 16, 22, 48, 49, 69 and 70.
• Consumer Protection Act Regulations, Government Gazette 34180 of 1 April 2011: regulation 5.
• National Consumer Commission: lodging a complaint