Wednesday, April 24, 2024
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Unfair Trading Practices

Alleged unconscionable conduct by South African Airways

 The Commission ordered South African Airways (SAA) to refund a Complainant for the expenses incurred following the company’s unconscionable conduct in rescheduling his travel itinerary. The Commission further ordered SAA to apologize to the complainant for the inconvenience caused by the cancellation of his flight to Malawi on 26th July, 2017. The Commission further ordered SAA to cease and desist from engaging in unconscionable conduct.

This followed investigations the Commission conducted against South African Airways (SAA) following a complaint from Mr Davlin Chokazinga, on allegations of unfair treatment. The investigations showed that the complainant’s flight was delayed due to reasons beyond both him and SAA’s control on 23rd July, 2018, and this led to his failure to board on his connecting flight to Malawi. According to SAA flight cancellation policy, they booked the complainant and other passengers the next flight to Malawi in order to avoid the inconveniences. The investigations found that SAA cancelled the booking without consulting the complainant and they told him to pay the entire travel, accommodation and food expenses on his own. The complainant ended up spending six thousand and twenty South African Rands (ZAR 6,020). The Commission found this conduct unconscionable, contrary to section 43 (1) (g) of the CFTA.

Alleged supply of products which do not comply with labelling standards by Capital Oil Refining Industries Limited

The Commission imposed a fine of MK2 million to Capital Oil Refining Industries Limited for supplying products which did not comply with prescribed labelling standards. This followed investigations which the Commission conducted which showed that CORI Limited branches in Ntcheu, Liwonde and Zomba were selling edible cooking oil of Kukoma, Palm Oil and Bwiti-Bwiti brands 200 litre drums and 20 litre containers which did not provide expiry dates for the product.

 

Further, the Commission also observed that the containers and the selling premises were very generally dirty and unhygienic. The Commission determined that CORI’s conduct violated section 43 (1) (e) which prohibits traders from supply products which do not comply with consumer safety standards.

Alleged supply of products which do not comply with labelling standards ETG Parrogate Cotton Limited

The Commission imposed a fine of MK5 million to ETG Parrogate Cotton Limited for supplying products which did not comply with prescribed labelling standards, and failing to comply with the interim Cease and Desist Orders issued by the Commission.

 

This followed investigations which the Commission conducted which established that ETG Parrogate Cotton Ltd branch in Zomba was selling edible cooking oil Purola in 200 litre drums and 20 litre containers which did not provide expiry dates for the product. Further, the Commission also observed that the containers and the selling premises were generally dirty and unhygienic.

Alleged misleading advertising by MASM

The Commission imposed a fine of MK5million to Medical Aid Society of Malawi (MASM) for engaging in deceptive advertising. The Commission also ordered MASM to cease and desist from engaging in misleading advertising and to make full and timely disclosures to their consumers whenever there are changes to the terms and conditions governing medical insurance.

 

This followed investigations which the Commission conducted on allegations that MASM published radio and newspaper advertisements stating that they had scrapped off shortfalls on medical bills to its members. However, the Commission did not find any evidence to support claims that shortfalls had been scrapped off. The Commission found that, contrary to the claims in the adverts, a number of private hospitals were demanding payment of shortfalls by MASM members on every visit.

 

The Commission found this conduct deceptive and a deliberate ploy intended to create an impression that the medical cover was free of additional charges contrary to section 43 (1) (d) of the CFTA. Further, the Commission found that MASM did not make full disclosures on the introduction of wallets for the different services offered and its implications on members' welfare.

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CFTC – Just Competition, Fair Trading

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