Unfair Trading Practices
Alleged supply of uncertified spirituous liquor- Dismissed Cases
The Commission dismissed allegations of supply of uncertified spirituous liquor likely to cause physical harm to consumers by 5 companies namely Ceyone Investments; Global Kings Beverages; General Beverages; Premier Cane Spirits and Shamboko Beverages. This followed investigations conducted by the Commission which showed that there were no traces of their products on the market. This signified that the companies had taken steps to comply with the law by discontinuing production of the uncertified liquor and successfully recalling all their products on the market. Therefore, the Commission did not impose any sanctions on the companies.
Alleged supply of uncertified spirituous liquor
The Commission ordered 12 companies to pay a fine of MK5 million each for supplying the market with uncertified spirituous liquor which is likely to cause harm to consumers. These companies were: Chilwa Investments; S.R Distilleries; Bwenzi Group; Silver Spirits; Reddy’s Beverages Limited; Atinga Investments; KSVN Investments Limited; Quality Investments; Jaisai Beverages; Vrushadri Limited; Cheers Distributors; and ASK Beverages. The Commission also ordered the companies to cease and desist from supplying harmful and uncertified products and to conduct a thorough product recall in all retail outlets within seven days. Further, the Commission ordered that should any liquor products be found on the market, the Commission would impose another fine to the offending companies.
This followed investigations conducted by the Commission which showed that these companies were supplying uncertified spirituous liquor products contrary to section 43 (1) (e) of the CFTA. The Commission established that, despite being warned about the injurious nature of the products, spirits produced by these companies were readily available on the market in substantial quantities.
CFTC Orders Game Discount World (Malawi) to Cease and Desist from Publishing Misleading Adverts
The Competition and Fair Trading Commission (CFTC) ordered Game discount World (Malawi) limited, popularly known as Game stores to cease and desist from publishing misleading adverts.
At its 38th meeting held on 31st January, 2014 the Commission heard that Game discount World (Malawi) advertised discounted prices for Seagate external hard drives of capacity 1TB from 19-22 September 2013. However, customers who turned up when the promotion started were told that this item was not in stock. Similarly, discounted prices for external hard drives of capacity 1 TB and 2 TB were also advertised for the promotion run from 26 September to 6 October 2013. Yet when the promotion started on 26 September, these items were also reported to be out of stock.
Misleading Advertising By Malawi Savings Bank
The Competition and Fair Trading Commission ordered Malawi Savings Bank to cease and desist from publishing misleading adverts. The order was made by the Commission at its 38th meeting held on 31st January 2014.
Investigations by the Commission established that MSB published an advert in one of the local media extending warehouse receipt credit facilities to traders who deposited their commodities for sale at the Auction Holdings Commodity Exchange (AHCX). The bank therefore invited traders who did not have an account with MSB to open an account so that they could access the credit facility.
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