The Competition and Fair Trading Commission (CFTC) has fined Noortex Limited in Lilongwe for supplying bales of second hand underwear, saying the products are likely to cause injury or physical harm to consumers.
The Commission commenced investigations against Noortex Limited on allegations of engaging in misleading conduct, unconscionable conduct and supply of products likely to cause injury or physical harm to consumers.
The investigations established that the complainant bought a bale of underwear from Noortex shop at Bwalo la Njobvu, Lilongwe at MK 80,000.00.
Upon opening the bale, the Complainant found vests, trousers and t-shirts. When the Complainant complained to the shop owner, she was offered to buy the bale at MK70,000 instead.
The Complainant, however, refused the offer and asked for a full refund, since the bale supplied was inconsistent with what she had requested.
“The Commission noted with concern, that the Respondent was supplying second hand underwear, which was banned by the Government through the Ministry of Trade.
“The Commission also found that the Respondent’s conduct amounted to misleading conduct which is in contravention of section 43(1)(d) of the CFTA. The Commission thus ordered the Respondent to pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000.00) for engaging in misleading conduct, unconscionable conduct and supply of products that do not comply with a consumer safety standard as prescribed by law,” reads part of a statement signed by Acting Executive Director Apoche Itimu.
According to the statement, the decision was made at a CFTC meeting on November 26.
During the meeting, CFTC considered and adjudicated over a total of 58 cases, which included 50 cases of unfair trading practices and 8 cases of anti-competitive business practices.
The Commission ordered companies to pay fines totaling K11 million and refunds of over K2.9 million, for committing different offences.
In one of the cases, the commissioner received a complaint that Nano Investments was supplying “Nano Cooking Oil” in 2ltr bottles which was advertised as “Preservative Free” and yet it had preservatives.
Investigations found that the allegations were true and further that the Malawi Bureau of Standards (MBS) did not authorize the Respondents to use the labels that they were using due to the misleading information.
The Commission thus ordered the Respondent to pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000) for engaging in misrepresentation of products and misleading conduct and a fine of Five Hundred Thousand Malawi Kwacha (MK500,000) for improper labelling of products.
The Commission also commenced investigations against Heing Long Trading on allegations that they excluded liability for defective goods.
Investigations established that the Complainant purchased four solar panels from the Respondents’ shop located at Bwalo La Njobvu in Lilongwe, at a total cost of MK196,000.00 which did not work but when the complainant tried to get redress from the Respondent he was not assisted. It was thus established that the Respondents’ conduct contravened Section 43(1)(b) and 43(1)(g) of the CFTA.
The Commission thus ordered the Respondent to pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000.00) for excluding liability for defective goods.