The Competition and Fair Trading Commission (CFTC) says it recently summoned 19 manufacturers and suppliers to explain reasons behind their excessive pricing, taking advantage of the 44 percent devaluation.
According to CFTC press statement released on Wednesday, 22nd November, 2023 signed by its Executive Director Lloyds Vincent Nkhoma, following the 44 percent devaluation of kwacha last two weeks, the commission has been conducting price monitoring exercises in the major cities and towns of the country.
Nkhoma said the ongoing exercise is aimed at gathering evidence of the violation of the Competition and Fair Trading Act (CFTA) through excessive price increases following the devaluation of the local currency on 7th November, 2023.
The statement further states that CFTC has noted that some of the price increments observed this far, depict a trend of possible opportunism aimed at using the devaluation of the local currency as a scapegoat to exploit consumers and reported that the commission approached 19 manufacturers and suppliers for questioning.
“The CFTC has so far formally approached 19 manufacturers and suppliers of products and services to explain the rationale behind such high price adjustments. CFTC has also engaged the relevant regulators on the same. This is the normal first step in the due process that the CFTC always follows before commencing a full investigation where the evidence points to a possible violation,” reads part of the statement.
Meanwhile, the commission says in conjunction with ministries of trade and ministry of local government, it has extended the price monitoring exercise to districts and rural trading centers.
“The CFTC, in collaboration with the Ministry of Trade and Industry as well as Ministry of Local Government, Civic Education and Culture, is now expanding this price monitoring exercise to the districts and rural trading centres of the country to establish and gather evidence of possible violations of the CFTA.
“The general public and the business community is hereby informed that should any supplier of goods and services be found to be engaging in excessive pricing contrary to the CFTA, the CFTC will not hesitate to issue relevant penalties and sanctions for such conduct as provided for under the law,” reads another part of the statement.
The commission has then encouraged consumers and the general public to report any suspected violation of the CFTA through its toll free line 2489 or send a WhatsApp message.
