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Firms pay K13.9m over unfair trading cases

Competition and Fair Trading Commission (CFTC) has resolved 58 cases relating to unfair trading practices and anti-competitive business in the process slapping various business entities with fines for unfair practices.

In a statement signed by CFTC acting executive director Apoche Itimu, the commission said of the 58 cases it adjudicated, 50 cases were of unfair trading practices and eight cases were of anti-competitive business practices.

Has fined companies: Itimu

According to Itimu, the commission  has since ordered companies to pay fines totalling K11 million and refunds of over K2.9 million, for committing different offenses.

Said the statement: “CFTC received a complaint alleging that Trust Foods Company engaged in misleading conduct and misrepresentation of products as they were supplying rice branded as Kilombero when the rice in question was not pure Kilombero rice. The investigations established that the rice that the respondents supplied on the market was not pure Kilombero and thus ordered that respondent should pay a fine of K500 000.” 

Similarly, the commission ordered Nano Investments to pay a fine of K500 000 for engaging in misrepresentation of products and misleading conduct.

CFTC also ordered City Supermarket, Sana Cash & Carry Mega Store, Santa Plaza and Food Lovers Supermarket pay a fine of a fine of K1 million for supplying for supply of products which are likely to cause injury to health or physical harm to consumers and for failure to comply with a directive or order lawfully given by the CFTC or any requirement lawfully imposed under the Competition and Fair Trading Act (CFTA).

Reads the statement: “In July, 2021 CFTC carried out market inspections (the respondents’ shops and found that the respondents were offering for sale some of the recalled products.

“Consequently, the respondents were ordered to remove the products in question from shelves and to stop selling them to customers. However, during a second shop inspection on recalled Tiger Brands the CFTC found that the respondents were still stocking some of the recalled Tiger Brand products.”

First Capital Bank was also ordered to pay a fine of K500 000 for engaging in unconscionable conduct. 

On the cases pertaining to anti-competitive business practices on which the commission had conducted, the CFTC said it dismissed allegations made on Smile Life Insurance Company Limited on alleged anti-competitive conduct.

According to the CFTC, investigations established that the allegations leveled on the insurance were untrue thus ordered that the case be closed as there was no evidence of anti-competitive conduct.

Speaking previously to Business News consumer rights activist John Kapito said putting proper monitoring and inspection systems in place is key to ensuring that everyone is accountable for their actions on the market.

Kapito urged CFTC to move in to protect consumers from being duped by unscrupulous and ensure a level playing field for businesses.

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