CFTC fines companies, orders refunds in consumer protection cases

The Competition and Fair Trading Commission (CFTC) has imposed fines and ordered refunds amounting to millions of kwacha following its recent review of cases involving unfair trading practices and anti-competitive conduct.
During its 71st meeting on December 13, 2024, the Commission adjudicated 49 cases, closing 26 at a preliminary stage while taking decisive action on others.
One of the cases involved Friends Investments, which was found guilty of supplying products likely to harm consumers and engaging in unconscionable business conduct.
The company was ordered to pay a penalty of 1% of its annual turnover for each offense, along with an additional 10% for ignoring previous cease-and-desist orders from the Commission.
Suncrest Creameries Limited also faced penalties after selling a product with a manufacturing date set after its purchase.
Investigations confirmed that this misled consumers in Zomba. The company was fined 1% of its annual turnover and criticized for failing to recall the defective batch of products.
In another ruling, Namonje Investments, operating in Mchinji, was penalized for repeatedly stocking expired goods.
The Commission deemed the practice a threat to consumer health and imposed fines totaling 1% of the company’s annual turnover, with an additional 10% added for being a repeat offender.
Paramount Holdings Limited was ordered to refund MK6.1 Million to a farmer who purchased substandard fertilizer.
Tests conducted by the Malawi Bureau of Standards confirmed the fertilizer lacked essential nutrients.
While Paramount had already faced penalties from the Bureau, the CFTC emphasized that the refund was necessary to uphold consumer rights.
In a separate case, Bao Steel Limited was directed to either provide a customer with iron sheets worth MK430,000 or refund the amount.
This followed a dispute over the quantity and type of sheets delivered after payment had been made.
The CFTC also reported that it secured refunds totaling MK6.5 million for affected consumers. Additionally, it recommended 12 mergers for authorization by the COMESA Competition Commission, underscoring its broader mandate to ensure fair market practices.
CFTC Chief Executive Officer Lloyds Vincent Nkhoma emphasized the importance of these decisions in safeguarding consumer interests and promoting business accountability.
The Commission continues to urge businesses to comply with the law to avoid penalties and preserve public trust.