COMPETITION AND FAIR TRADING COMMISSION CONSUMER PROTECTION IN MALAWI

1. COMPETITION AND FAIR TRADING COMMISSIONCONSUMER PROTECTION IN MALAWI Crossroads Hotel Lilongwe, Malawi 8-10 September 2014 Presented by Charlotte Wezi MALONDA EXECUTIVE DIRECTOR Email: mesikanowezi@gmail.com/charlottewezi.malonda@cftc.mw

2. Legal framework on Consumer protection Malawi • Consumer protection Act 2003 • Provides an enumeration of the rights of a consumer in general • Provides undertakings to be made by government • Elaborates the obligations of traders • Competition and Fair trading Act 1998 • Mandated to protect consumer welfare • Protection of consumers from unfair trade practices • Includes protection against violation by both state and none state actors

3. Legislative framework The CFTA is an Act which: • encourage competition in the economy by prohibiting anti-competitive trade practices; • establish the Competition and Fair Trading Commission; ie appointment of Commissioners and establishment of a secretariat. • regulate and monitor monopolies and concentrations of economic power; • protect consumer welfare;

4. Strategic focus • Objectives • Educate consumers • Inform consumers • Protect consumers • Mission To monitor behaviour that is likely to adversely affect competition and enhance competition by , professionally and fairly investigating and resolving cases of anticompetitive and unfair trade practices to promote consumer welfare and for the benefit of the people of Malawi

5. CFTC’s Priorities • On going Advocacy • Increase education and awareness • Co-operation with other regulators in infiltrate sectors of trade • Encourage engagement by consumers • Enforce cases which have a public interest effect • Initiate and maintain a consumer protection culture • Strengthen the link between competition and consumer protection. • Benchmark and set high standards for consumer protection • Aligning consumer rights with human rights.

6. Hot topics on consumer protection in Malawi • Display of disclaimers • Misleading adverts • Misleading conduct • Display of prices • Counterfeit products • Unconscionable conduct • Unfair contractual terms

7. Other upcoming categories • Romance scams • Family friend • Loan scams • Miracle cure scams • Religious scams • Scams related to miracle cures for terminal illnesses • Traditional medicine scams • Employment agencies • Investments /pyramid schemes • Chain mail

8. Categories of complaints & challenges • Individual complaints • Public outcry • Can take up cases on our own volition. • Challenges :- • Some areas not regulated • Religious • Traditional remedies/problem solving • Some areas heavily regulated by lack of enforcement • medicines & poisons, land, financial sector

9. Case study • BWB case • CFTC ordered Blantyre Water Board to cease and desist from engaging in prohibited unfair trading practices. • Investigations conducted on Blantyre Water Board established that the company engaged in unconscionable conduct by implementing a deliberate policy of delayed reconnection of water supply to disconnected customers. • Under the policy, water consumers whose supply was disconnected due to non-payment of outstanding bills are only reconnected after three days upon payment of outstanding balance and a penalty.

10. Penalties • General penalty is MK500 000 or an amount equivalent to the financial gain generated by the offence. • Damages can be obtained before the High Court for any loss suffered

11. The End • Thank you and God bless • Visit us at www.cftc.mw • Facebook : competition and fair trading commission of Malawi • Email- competitioncommission@cftc.mw