CFTC warns that the festive season has potential to be accompanied by widespread violation of consumer rights

* Thus warns all traders against engaging in unfair trading practices with the intention to exploit consumers

* As CAMA calls on all consumers to be vigilant and assertive when making any plans to spend the scarce resources available

* This is the time than ever before we need to be extra careful on the market, exercise prudent judgment on any purchases, and manage your scarce resources wisely

By Duncan Mlanjira

As Christmas and New Year festive season is fast approaching, the Competition & Fair Trading Commission (CFTC) alerts the public that this is a period that is marked by increased commercial activity and spending — thus warns that this “may be accompanied by widespread violation of consumer rights”.

In a statement, Chief Executive Officer, Lloyds Vincent Nkhoma, is advising consumers to be vigilant and assert their rights during this period and also warns “all traders against engaging in unfair trading practices with the intention to exploit consumers”.

CFTC, therefore, urges all consumers to be cautious and be aware of their rights as follows:

* Demand a receipt: Always insist on a valid receipt for every purchase. This is your most vital piece of evidence if a dispute arises;

* Check for expiry dates: Carefully examine the expiry dates on all perishable goods, especially food and beverages bought for holiday gatherings. Do not just rush to buy;

* Beware of misleading pricing: Be critical of ‘sale’ prices. Compare the displayed price with the price charged at the till;

* Demand redress: If a product is defective or a service is substandard, you have a right to a refund, replacement, or repair. Do not accept a ‘no refund on sale items’ policy if the goods are faulty;

* Verify online shopping platforms: For online purchases, verify the reputation of the seller and understand the return and refund policy before making a payment.

The CEO further reminds all traders of their obligations under the Competition and Fair Trading Act — with a strong warning that “non-compliance will result in severe penalties, including hefty monetary penalties”.

The CFTC observes that prohibited unfair trading practices include:

* Excessive pricing: Do not take advantage of high demand during the holidays to charge excessively high prices for goods or services. Prices must be justifiable and reflect legitimate production costs;

* False or misleading advertising: Do not make false claims about the quality, standard, price, or origin of your products;

* Sale of substandard or unsafe products: Do not sell goods that are expired, defective, or do not meet health, safety, and quality standards.

“CFTC is actively monitoring the market and will not hesitate to take decisive action against businesses engaging in any malpractices,” says the statement.

Meanwhile, Consumers Association of Malawi (CAMA) Executive Director, John Kapito has also issued a statement, reminding the public of the current high cost of living which has affected everyone and depleted their incomes.

“Let us all be reminded that the economy is in bad shape as a result of various factors beyond the control of the consumer,” he said. “Therefore, there is need to ensure better planning with the little incomes that are available.

“The devaluation of the Malawi Kwacha and poor mismanagement of the economy by those in power had created serious economic challenges for the consumer, which will take a long time to reverse.

“Consumers are currently facing forex challenges, scarcity of basic commodities, continuous devaluation of the kwacha and unemployment, all these factors have been the recipe for the pain and challenges consumers are currently experiencing.

“Prices of most basic goods and services have increased by over 150% compared to December last year,” says Kapito, while calling on all consumers “to be vigilant and assertive when making any plans to spend the scarce resources available”.

“This is the time than ever before we need to be extra careful on the market, exercise prudent judgment on any purchases, and manage your scarce resources wisely.”

CAMA thus advises consumers observe the following:

* Budgeting before any purchases are done and planning all expenses with their families;

* Avoiding impulse buying or any influence by promotions and advertisements and voiding purchase of unnecessary luxury goods and services;

* Not buying from street vendors or unscrupulous traders selling valuables or any commodities to avoid being cheated or duped;

* Reducing or not going for unnecessary trips or travel and to first paying their rentals, water bills, electricity bills, school fees;

* Buying enough food to last the month of January and avoiding using borrowed money from unregistered money lenders (katapila).

“CAMA wishes all consumers a Merry Christmas and a Happy New Year. May the holidays bring joy, safety, and renewed strength for the year ahead.”