CFTC alerts consumers to be vigilant against misleading and deceptive pricing of commodities

* Consumers are already reeling from increases in prices which emanated from

* It is imperative that they spend their hard earned cash on goods and services that offer value for money

* As CAMA advises the public to be responsible and spend their scarce resources prudently

By Duncan Mlanjira

The Competition and Fair Trading Commission (CFTC) is alerting  consumers to be vigilant on the market against possible unfair trading practices — especially during this festive season when suppliers of goods and services engage in different tactics to woo customers.

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In a statement, CFTC Executive Director, Lloyds Vincent Nkhoma said “cognisant that consumers are already reeling from increases in prices which emanated from the realignment of the local currency to the international trading currencies, it is imperative that they spend their hard earned cash on goods and services that offer value for money in terms of price, measurements, quality, etc”.

“Consumers, therefore, need 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.”

Nkhoma also warns traders that they must be aware that engaging in such conducts is against both the Competition and Fair Trading Act (CFTA) and the Consumer Protection Act (CPA).

Lloyds Vincent Nkhoma

Thus in relation to keeping promotional activities truthful and not misleading to consumers, the business community are advised as follows:

* Be accurate by making sure adverts are factually correct and that they do not tend to deceive or mislead the consumer;

* 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

* 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.

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In addition to the above, CFTC also reminds traders that they must be aware that they have the following obligations towards consumers:

* To ensure correct ingredients, measures or weights are indicated on goods;

* Not to supply goods which can cause injury or harm to a consumer and which do not comply with the Malawi Safety Standards; and

* To provide consumers with true, sufficient, clear and timely information on goods that are on offer.

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

Soon after the devaluation of the kwacha last month, the CFTC and the Ministry of Trade & Industry were mandated by President Lazarus Chakwera to intensify investigations of any perceived unjustified price increases.

In its primary surveillance of the market, CFTC released a report that while it was obvious that any devaluation of the currency may trigger an upward adjustment of the pricing of goods or services, it was  observed that indeed some traders were using the devaluation as a scapegoat to exploit consumers.

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The CFTC observed that some price at that time depicted a trend of possible opportunism through excessive price increases and formally approached several manufacturers and suppliers of products and services to explain the rationale behind such high price adjustments.

The CFTC further reported that in collaboration with the Ministry of Trade & Industry as well as Ministry of Local Government, Civic Education & Culture, they expanded the price monitoring exercise to the districts and rural trading centres of the country to establish and gather evidence of possible violations of the CFTA.

Meanwhile, the Consumer Association of Malawi (CAMA) advises the public “to be responsible and spend their scarce resources prudently and wisely and refrain from activities that will negatively deplete their incomes”.

In a public statement, CAMA Executive Director, John Kapito says this year’s festive season “will be one of the worst for consumers as the cost of living keeps rising exacerbated by the 44% devaluation of the kwacha”.

John Kapito

“This has depleted incomes of many consumers by reducing their spending power. The current poor economic situation provides no cushioning alternatives for the majority of consumers.”

Kapito, thus advises consumers to budget prudently before any purchases are done, to plan all expenses together with their families as to avoid impulse buying or any influence by promotions and advertisements.

Consumers are also urged to avoid purchase of unnecessary luxury goods and services; to reduce or not to go for unnecessary trips or travel; to first pay their rentals, water bills, electricity bills, school fees and buy enough food to last you the month of January

Kapito, while wishing all consumers a Merry Christmas and a prosperous 2024, strongly warns the public to desist from borrowing money from unregistered money lenders, otherwise known as katapila.

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