CFTC Cracks Down on Unfair Trade Practices with Significant Fines
In total, the companies were ordered to pay a refund of K6.5 million to consumers, underscoring the CFTC's commitment to consumer protection.
LILONGWE, Malawi— The Competition and Fair Trading Commission (CFTC) has imposed substantial fines on several companies for engaging in unfair trading practices, as announced in a press release on Thursday, writes Wendi Mkandawire.
The commission's actions follow its 71st meeting on December 13, 2024, where 49 cases were reviewed, resulting in significant penalties and consumer refunds.
The CFTC, established to regulate competition and fair trading practices in Malawi, has taken a firm stance against companies that violate consumer protection laws.
Among the cases adjudicated, three companies were ordered to pay fines amounting to 1% of their annual turnover, with additional penalties for repeat offenders and non-compliance.
Friends Investments, a major player in the investment sector, was fined for supplying products likely to cause injury or harm to consumers and engaging in unconscionable conduct.
The company was also penalised for failing to adhere to previous cease and desist orders, incurring an additional 10% penalty on the fines.
Suncrest Creameries Limited, known for its dairy products, was penalised for misleading conduct related to product dates and ordered to recall defective batches.
The company's violation involved selling products with future manufacturing dates, which deceived consumers about the product's freshness.
Namonje Investments, a retail company, was fined for supplying expired products, including an additional penalty as a repeat offender.
The company had previously been caught stocking expired goods, highlighting a persistent disregard for consumer safety.
BAO Steel Limited, a leading supplier of construction materials, was ordered to supply the remaining quantity of iron sheets or refund the difference to a complainant who was shortchanged.
Paramount Holdings Limited, a prominent fertiliser supplier, was directed to refund a complainant for supplying substandard fertiliser, which failed to meet the required standards.
In total, the companies were ordered to pay a refund of K6.5 million to consumers, underscoring the CFTC's commitment to consumer protection.