Tag Archives: The Competition and Fair Trading Commission (CFTC)

Business

CFTC warns retailers on withholding change from customers

Maravi Post Reporter

LILONGWE-(MaraviPost)- The Competition and Fair Trading Commission (CFTC) on Monday noted with great concern over some retail chain stores ofhaving the tendency to withhold change from consumers or offer them sweets in lieu of change.

According to the Commission, the withheldig of change is usually in the following denominations – Twenty Malawi Kwacha; Ten Malawi Kwacha; Five Malawi Kwacha, and One Malawi Kwacha.

In a press statement made available to Maravi Post, CFTC informs all Retailers that the practice of withholding change from consumers or offering them sweets in lieu of change is unfair, unreasonable and unconscionable as it leaves consumers worse off than they were before the transaction.

The state trading body added that retailers have an obligation to have all denominations of Malawi’s legal tender to facilitate fair trading conditions for consumers and the market at large.

The Commission further said that Section 43(1)(g) of the Competition and Fair Trading Act makes it an offence for any person to engage in unconscionable conduct in carrying out trade in goods and services.

“In view of this, the Commission wishes to appeal to all Retailers to cease and desist from unfair trading practices such as withholding change from consumers.

“Appropriate penalties will be imposed on any Retailer found withholding change from consumers or offering them sweets in lieu of change”, reads the statement signed by it’s Executive Director, Charlotte Malonda.

Business

CFTC and RBM team up against financial institutions’ customers duping conduct

Lloyd M’bwana

LILONGWE-(MaraviPost)- The Competition and Fair Trading Commission (CFTC), and Reserve Bank of Malawi (RBM), this week teamed up against financial institutions that are duping customers with misleading adverts.

This comes following the central bank received numerous complaints as far back as from 2013, which were 13 but now the figure has risen to 500 claiming that financial institutions are misleading customers when trading them.

Through the country-wide financial sector surgeries conference, the two institutions are raising awareness on fair trading practices among the financial institution players.

The exercise will help to lessen anti-competitive business practices among them, and in the process, create more protection shield for consumers.

Speaking on the sidelines of the financial literacy conference in Lilongwe this week RBM’S chief examiner for protection and financial literacy, Madalitso Chamba, observed that the increase in complaints shows that Malawians are becoming aware of their rights.

Chamba said financial literacy surgeries for the financial sector are important because financial sector players will now know that it is important to give all information a customer requires before they secure a loan or sign contracts.

“The RBM wants to promote fair competition in the financial sector, and by working hand-in-hand with the CFTC, consumers will be protected. Initially, people did not know that they could complain, but now following the massive campaigns we have conducted, people know their financial rights.

“We expect customers’ interests to be at the heart of how firms do business. Customers can expect to get financial services and products that meet their needs from firms that they can trust,” said Chilombo.

Underscoring these sentiments, CFTC director of consumer welfare and education Lewis Kulisewa, said that the level of awareness, among consumers and financial players, is low, which aggravates the situation.

Kulisewa said CFTC wants players in the financial sector to understand the law and how it is interpreted, so that it helps them comply to them.

“Disclosure must be made in standardized formats for common products to allow comparability of products or services of the same nature.

‘Financial institutions must have appropriate structures for handling consumer complaints. Well-designed recourse and dispute resolution mechanisms can help consumers quickly and effectively resolve problems and questions as they arise,” Kulisewa said.