CFTC to amplify importance of knowing terms & conditions during commemoration of 2024 World Consumer Rights Day

* There are increasing number of complaints regarding unfair and unreasonable terms and conditions

* Lack of their disclosure by traders; and unilateral waver of the terms and conditions without the consent of consumer — thereby rendering the agreements void

By Duncan Mlanjira

This year’s World Consumer Rights Day on Thursday, March 14 will be commemorated under the theme; ‘Terms and Conditions, Traders’ Obligations’ and Competition and Fair Trading Commission (CFTC) will amplify the importance of knowing terms & conditions taking cognizance that most consumers are not conversant with this right.

A statement from CFTC Executive Director, Lloyds Vincent Nkhoma says they will lead consumers and traders in the country in celebrating the World Consumer Rights Day on Thursday in Kasungu.

Traditionally, World Consumer Rights Day falls on March 15 every year — an annual occasion for celebration and solidarity within the international consumer movement.

“The day is observed by promoting the basic rights of all consumers and demanding that they are respected and protected,” Nkhoma said.

“In choosing the theme ‘Terms and Conditions, Traders’ Obligations’, the Commission has been motivated by the increasing number of complaints regarding unfair and unreasonable terms and conditions; lack of their disclosure by traders; and unilateral waver of the terms and conditions without the consent of consumer — thereby rendering the agreements void.

“Such conducts have been mostly rampant in contract farming, energy sector and financial services sector including insurance, banking and microfinance.

“As we celebrate this year’s World Consumer Rights Day, the Commission reminds consumers and traders that terms and conditions must be well understood by both parties and that they must be written in plain and understandable language.

“The Commission also reminds the general public that terms and conditions which are unfair, unconscionable, inequitable, oppressive or unreasonable to consumers have no effect on the contracts.”

Thus CFTC emphasises that in drafting the terms and conditions parties must be guided that the terms are clear and understandable; be drafted in the official language; and must be drafted in characters that are legible.

Where the contract is entered into locally, it must have a written translation into the national local language and must be read and explained to an illiterate, blind, mute and similarly disabled party in a language they understand.

CFTC further says during the week beginning on Sunday, March 10, the are conducting a number of activities aimed at raising awareness about consumer rights — specifically on terms and conditions.

The activities will include market inspections, consumer surgeries, road shows and radio programs while during Thursday’s main event in Kasungu, it will start with a consumers’ and traders’ parade from 08:30hrs from Kasungu Municipal Council to Kasungu Community Ground where there will be speeches, traditional dances and comedies.

The guest of honour at the main event is expected to be Minister of Trade & Industry, Sosten Gwengwe.

Majority of consumers never take careful scrutiny of terms and conditions by service providers as they are written is very small print and very long winded.

They are never provided in local language but just English and by the time they complain of an unfair service, the service provider then prints the terms and conditions in large fonts.

Towards the festive season last December, CFTC alerted consumers to be vigilant on the market against possible unfair trading practices since during Christmas periods suppliers of goods and services engage in different tactics to woo customers.

Consumers were encouraged to be on a watch out for misleading and deceptive conducts emanating from pricing, advertising, sale of fake or uncertified products, sale of expired products on promotion, among others.

CFTC also warned traders to be truthful and not misleading to consumers by being accurate and making sure adverts are factually correct and that they do not tend to deceive or mislead the consumer.

They were also urged to have sufficient quantities on hand — such that when they advertise goods for sale, to make every effort to have enough on hand to supply the demand that is reasonable to expect and if they think they cannot meet the demand they should state it in the advert that quantities are limited

And also to watch out for the word free such that if they advertise that goods or services are ‘free’ or ‘without charge’ to be sure there are no unstated terms or conditions that qualify the offer.

At an indaba on the sidelines of last year’s International Trade Fair at Chichiri in Blantyre, CFTC engaged financial service providers — commercial banks, insurance companies, mobile money service providers and micro finance institutions — who were alerted of complaints being received from consumers.

They included suspected collusive conduct, through uniform pricing of interest rates; deposit rates, lending rates and interest rate spread, saying it appear there are some tacit collusion.

Others were financial scams/fraud; dubious Sim-swaps and account hacking; customers’ money fraudulently transferred from bank accounts; and weak security parameters for electronic funds transfers platforms.

Also being complained of was non-disclosure of material information especially when marketing loan packages where the terms & conditions are indicated that they shall apply but are usually in very unreadable small print fonts.

There is also frequent inaccessibility of e-financial services that include poor access to ATMs and electronic payments services due to network problems and also concerns on management of dormant customers’ accounts in which there is continued charges on dormant accounts without any cut-off point where the customer is not paying premiums;

Consumers are also complaining of being charged for failed transactions where cash is not dispensed on other banks’ ATMs and that inter-bank ATM withdrawal fee is usually not refunded.

There was also delayed reversals on failed transactions or mistaken transactions that can take up to 5 days for commercial banks  and 2 days for mobile money — and sometimes no refunds for failed transactions on inter-bank ATM withdrawals.

High interest rates on loans was also raised, where there are gaps in huge interest for commercial banks while micro-finance institutions’ interest rates are also high and charged monthly.

Some of the promotions the financial services flighted were reported to be misleading and deceptive advertising and that offer prizes with no intention of supplying them and that prizes may not be awarded in a transparent manner.

They are also weak and ineffective complaints handling mechanisms that include failure to timely and effectively redress complaints.

Meanwhile, the CFTC further encourages consumers and the general public to report any suspected violation of the CFTA through its toll free line 2489 or send a WhatsApp message to 0987738749.