Consumers cautioned on festive season spending
Consumers Association of Malawi (Cama) has urged consumers to spend prudently and refrain from activities that will deplete their incomes further during the festive season.
In a statement, Cama executive director John Kapito said already, the 44 percent kwacha devaluation has depleted incomes of many consumers and reduced their spending power.
He said: “The current poor economic situation provides no cushioning alternatives for the majority of consumers.
“It is, therefore, the responsibility of every consumer to protect and defend their rights by being critical and assertive when buying every product or service on the market.”
Kapito has since advised consumers to budget before any purchases are made, avoid impulse buying and the purchase of unnecessary luxury goods and services, reduce unnecessary travel, prioritise payment of bills, rentals, school fees and food and refrain from using borrowed money from loan sharks (katapila).
Meanwhile, the Competition and Fair Trading Commission (CFTC) has urged consumers to be vigilant on the market against possible unfair trading practices, especially during this festive season when suppliers of goods and services engage in different tactics to woo customers.
In a statement, CFTC executive director Lloyds Nkhoma said consumers need to watch out for misleading and deceptive conducts emanating from pricing, advertising, sale of fake or uncertified products and sale of expired products on promotion, among others.
He said: “Cognisant that consumers are already reeling from increases in prices which emanated from the realignment of the local currency to the international trading currencies, it is imperative that they spend their hard- earned cash on goods and services that offer value for money in terms of price,measurements and quality, among others.”
Nkhoma said traders must be aware that engaging in such conduct is against both the Competition and Fair Trading Act and the Consumer Protection Act.
Following the 44 percent kwacha devaluation in November, Centre for Social Concern data shows that the average cost of living has increased by about nine percent to K433 793 in November.
The surge in cost of living has been attributed primarily to the remarkable increases in the prices of staple commodities, especially maize and sugar.
