By Benadetta Chiwanda Mia:
Complaints against unfair trading practices have surged over the past five years, latest data from the Competition and Fair Trading Commission (CFTC) show.
The commission recorded 449 complaints in the year ending March 2024, up from 390 in the previous year, 2022 to 23.
In contrast, the commission registered 311 complaints in 2019- 20, 333 in 2020-21, and 347 in 2021-22, illustrating a steady increase in reported cases of unfair trading practices.
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CFTC Public Relations Officer Innocent Helema attributed the upward trend to increased awareness among the public on identifying and reporting suspected unfair trading practices.
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“We believe the number of complaints has been rising due to the confidence and trust that consumers traders and the general public have in the commission,” Helema said.
He said most common violations are unconscionable and unreasonable conducts, which account for 237 (52 percent) of the complaints recorded during the reviewed period.
“Examples of such practices include excessive pricing and unfair contract terms. The highest number of complaints originated from the retail trading sector,” Helema said.
On a positive note, the commission also improved its resolution rate, settling 364 cases in the year ending March 2024, up from 310 cases in 2022-23.
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Helema also disclosed that CFTC is actively engaging in various activities to raise awareness about possible violations under the new Competition and Fair Trading Act, targeting both consumers and traders.
“We conduct market surveillance and inspect business premises to identify and root out possible violations,” Helema said.
Consumers Association of Malawi Executive Director John Kapito acknowledged that the recorded complaints are just a fraction of those being registered with the commission and other authorities.
“We are receiving more complaints now than before. These complaints are really about cheating on pricing, cheating on the quality of goods, repackaging and changing expiry dates. We have observed a rise in these malpractices,” Kapito said.
Kapito concurred with CFTC that consumer education is integral in this upward trend in complaints.
He noted that consumer education is becoming more accessible as it is now being included in school curricula.
“So most people that are now coming of age and reaching a level of being consumers are able to stand up and challenge malpractices using the existing systems,” Kapito noted.
However, Kapito also challenged relevant authorities, including CFTC, to intensify awareness of the new Competition and Fair Trading Act of 2024, which clearly stipulates obligations and introduces stiffer penalties for violations.
