CFTC cracks down unfair business
Competition and Fair Trading Commission (CFTC) executive director Lloyds Vincent Nkhoma has reiterated the commission’s commitment to protecting consumers and fostering a level playing field for businesses.
This follows the commission’s 69th meeting held on July 23, 2024 that considered 90 cases, 77 of which were on unfair trading practices. However, the commission closed 63 cases at the preliminary stage to lack of merit.
Addressing the media in Lilongwe on Friday, Nkhoma said going forward, the commission will be in a stronger position to resolve cases under the New Competition and Fair Trading Act if 2024 which came into force last month.
He said: “We will have the mandate to impose fines on non-compliant businesses of up to 10 percent of a company’s turnover.
“This is a deterrent capable of reducing non-compliance.”
The commission has since referred six out of seven cases of unfair competition and exploiting customers to the Director of Public Prosecutions for criminal proceedings.
Four of these cases involved Chou Chou Bea Enterprise, Priceworth Wholesale, Rozina Enterprise, and Simama General Dealers, accused of exploiting customers for selling sugar at inflated prices during a period of low supply earlier this year.
Zamm Enterprises and AfriPlus Steel Limited were also referred to the DPP for supplying contaminated water and failing to supply iron sheets to customers despite receiving payment.
However, the CFTC blocked a proposed acquisition of Glenae Poultry Farm by Go Fresh Malawi Limited due to concerns that the former’s affiliation with Central Poultry would create a dominant position in the dressed chicken market.
