CFTC fines four companies for unfair trading, anti-competitive practices

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The Competition and Fair Trading Commission (CFTC) has fined four companies and ordered other five companies to refund money to their clients over unfair trading and anti-competitive business practices.

The Commission on Thursday told journalists in Lilongwe through its
Acting Executive Director Apoche Itimu that it arrived at the decision following investigations which they conducted after receiving complaints from the general public.

Itimu said the Commission has ordered four companies to pay fines totaling K2.5 million while five companies were ordered to refund over K2 million to consumers, for committing different offences.

The Acting Executive Director reported that Wella Medical Aid Society of Malawi (WEMAS), Old Mutual Life Assurance Company Limited, Capital Foods Limited have been fined K500, 000 each, while the Southern Region Water Board has been fined K1 million for unconscionable conduct.

She added that WEMAS denied to process a claim of a client who paid for medical and funeral arrangement costs of a mother who was under medical insurance and died due to COVID19-related complications.

The Commission also found Old Mutual Assurance Company guilty of incorrect deductions as the complainant who invested MK9,801,430.00, only received a sum of MK7,256,000.00 in return instead of about K15,233,180.00.

It is also reported that the Southern Region Water Board has been punished for revising a customer’s monthly consumption of water upwards by 20 kiloliters per month from 15 kiloliters per month without notifying owner of the house.

On the other hand, the companies that have been ordered to refund to consumers, include: Southern Region Water Board, WEMAS, DAAM Project, Pep Stores, SMB Electronics and Yellowman Machines.

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