Businesses challenging enforcement orders issued by the CFTC will have to face the regulator in court, as the commission insists it will not back down from protecting consumers and promoting fair competition.
In June this year, the Competition and Fair Trading Commission (CFTC) imposed K361 million in penalties on six companies for violating competition and consumer protection laws.
FDH Bank was fined K200 million, Standard Bank Malawi K100 million and Modern Dry Cleaners K3 million, while the other firms received varying penalties. Some have complied, while others are negotiating with the Commission.
FDH Bank, Standard Bank Malawi and Modern Dry Cleaners have challenged the determinations in court and obtained stay orders.
Speaking in Blantyre during an engagement with journalists on competition and fair trading policy, CFTC Director of Competition Edward Joshua described such challenges as part of the normal legal process and said the commission is prepared to defend its position.
“If companies are challenging that, yes, they have their legal right to challenge that. But what we can say is that we will defend our decisions in court,” Joshua said.
He said the commission’s priority is to ensure that businesses operate within the rules so that consumers can enjoy a market where competition is fair.
The CFTC’s stronger enforcement powers stem from the Competition and Fair Trading Act of 2024, which replaced the 1998 law and came into force on July 1, 2024. The new law expanded the commission’s powers over anti-competitive conduct and consumer protection.
Under the new law, companies found in breach can face administrative penalties of up to 10 percent of annual turnover, while individuals can face penalties of up to five percent of annual income.
The commission can also issue orders requiring remedies such as refunds, exchanges or cancellation of unfair contracts.
Joshua said the commission is also looking forward to the proposed Consumer Protection Bill, which is currently with the Minister of Justice for review.
He said the bill designates the CFTC as the enforcement agency for consumer protection matters, a provision he believes will give the commission greater clarity and capacity to deal with unfair trading practices.
He said the proposed law would strengthen the commission’s ability to protect consumers beyond what it currently does under the Competition and Fair Trading Act.
He said court decisions on cases arising from the new law will also help clarify how the legislation should be applied and whether further amendments will eventually be necessary.
“It’s a new law, obviously there are challenges, but once the court has pronounced itself on a number of matters, I think then the trajectory will become very clear,” he said.
