Crossroads Hotel Lilongwe Malawi 8 10 September 2014

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

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

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

Strategic focus Ø Objectives Ø Educate consumers Ø Inform consumers Ø Protect consumers Ø 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

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

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

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

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

Case study Ø BWB case Ø CFTC ordered Blantyre Water Board to cease and desist from engaging in prohibited unfair trading practices. Ø 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. Ø 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.

Penalties Ø General penalty is MK 500 000 or an amount equivalent to the financial gain generated by the offence. Ø Damages can be obtained before the High Court for any loss suffered

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