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Cartrack, the vehicle tracking company at the center of Nasdaq-listed Karooooo and the commercial engine behind billionaire founder Zak Calisto's fortune, has agreed to pay a R5 million ($292,000) administrative fine and refund more than R5.1 million ($298,000) to customers after South Africa's consumer watchdog aimed its contracts.
The National Consumer Tribunal agreed a consent order on March 25, 2026, following a referral earlier that month by the National Consumer Commission. The NCC had opened an investigation after receiving complaints from 210 consumers who alleged that Cartrack failed to resolve issues with its service adequately.
What the settlement requires
Under the terms of the deal, Cartrack agreed to settle 167 of those complaints without admitting liability, citing a preference to avoid prolonged litigation. The NCC said it could not establish a contravention in the remaining cases.
Beyond the fine and refunds, Cartrack committed to canceling affected contracts without charging cancellation fees and to amending its terms and conditions to address any vagueness that could conflict with the Consumer Protection Act. The NCC's investigation found that the terms of some of Cartrack's sale agreements were inconsistent with the CPA.
Acting NCC commissioner Hardin Ratshisusu said the settlement closes a drawn-out process. "This settlement concludes a lengthy investigation into complaints involving Cartrack," he said. "Consumers that were affected by the conduct will, through this settlement, receive redress." Ratshisusu also acknowledged Cartrack's full cooperation throughout the process and welcomed its commitment to bring its terms in line with the law.
About Calisto and Cartrack
Calisto, a Portugal-born entrepreneur who moved to South Africa as a child, founded Cartrack in 2001 after years of working in vehicle telematics distribution. He built the company from a startup with almost no capital into one of the dominant tracking businesses on the continent before restructuring it under a Singapore-registered holding company, Karooooo, which he listed on the Nasdaq in 2021. He holds roughly 65% of Karooooo's shares and retains effective voting control through a standing agreement, giving him a combined beneficial ownership stake of close to 75%. Karooooo now serves more than 2.6 million subscribers across 23 countries.
The consumer settlement does not touch the group's fundamentals, but it draws attention to the obligations Cartrack carries as one of South Africa's largest consumer-facing subscription businesses. The court directed a total forfeiture of R1.98 billion ($115.6 million) to the federal government, comprising R1.2 billion ($70.1 million) submitted as restitution and R780 million ($45.6 million) recovered during the investigation. Cartrack has nearly two million subscribers in the domestic market alone.
