Prosus-owned AutoTrader.co.za — a leading auto marketplace in South Africa — has reportedly launched an internal investigation over a serious breach of trust by its employees and dealers.
According to a media report, AutoTrader SA is currently investigating some of its employees who have allegedly colluded with several dealers to provide the latter with an undue advantage in accessing private customer vehicle listings in return for bribes.
As a result of this alleged breach of trust, multiple dealers accessed private listings before individual buyers on the site, depriving them of a fair chance to buy a vehicle.
The issue has reportedly come to light following whistleblower complaints, leading to an immediate response from AutoTrader SA. Following the internal investigation, the company is likely to initiate disciplinary action against staff and dealers who are found to be involved and, if necessary, refer the matter to legal authorities.
In a media statement, AutoTrade said, “We are currently conducting a full internal investigation and engaging with the relevant parties. Disciplinary and legal action will follow where appropriate.” The company has not revealed finer details about the investigation. The AIM Group’s queries to AutoTrader SA did not elicit an immediate response.
However, AutoTrader SA has asserted that its staff are strictly prohibited from accepting bribes or other incentives from any external party. Dealers, too, are expected to follow a code of conduct. Therefore, the company says, any dealer found guilty of the accusation is liable to immediate suspension from the platform. AutoTrade SA is said to have more than 2,000 dealers registered on its platform. In Feb., the company launched a dealer ratings and reviews feature to add transparency to auto transactions.
Moreover, the employee-dealer collusion has broader legal implications for AutoTrader SA, especially in the context of South Africa’s data privacy laws. The alleged misconduct is in violation of the Protection of Personal Information Act — commonly known as the POPI Act — that aims to protect individuals’ personal information.
While AutoTrader SA has acknowledged the scandal, it has yet to reveal the scale of it. In March, the company said its platform has 40 million users — over two-thirds of the country’s total population of 63 million — which makes the scandal a cause for concern.
Founded in 1992, AutoTrader SA connects used car buyers and sellers, offering a secure platform to transact. Prosus acquired a majority stake in it in 2017. AutoTrader has since emerged as a market leader, ahead of Cars.co.za across multiple metrics.
Scandal-hit AutoTrader SA has requested more employees to come forward with information, promising confidentiality. A dedicated whistleblower line (+27 87 256 5400) and email address (whistleblower@autotrader.co.za) have been set up. “All reports are treated confidentially and can be made anonymously,” the company announced.
