Wednesday, August 15, 2018
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Press Releases

COMMENCEMENT OF INVESTIGATIONS INTO ALLEGED PYRAMID SELLING BY ALLIANCE IN MOTION GLOBAL IN MALAWI

Notice is hereby given to interested stakeholders and the public that the Competition and Fair Trading Commission has commenced investigations against Alliance in Motion Global (AIM Global) and other associated enterprises on allegations of engaging in pyramid selling of goods and services.

This investigation follows information which the Commission received alleging that various individuals and business enterprises operating under the banner of Alliance in Motion Global, are engaged in the conduct of setting up and promoting pyramid selling schemes in the country. Pyramid selling is a fraudulent scheme for the sale or lease of a product whereby one person pays a fee to participate in the scheme and receives the right to receive a fee, commission or other benefit, for simply recruiting members into the scheme.

The Competition and Fair Trading Commission is interested in the matter as it appears to raise serious concerns under the Competition and Fair Trading Act (CFTA) and the Consumer Protection Act (CPA).

It should be noted that commencement of investigation does not presuppose that any of the enterprises under investigation have violated the law. The Commission will, in accordance with Section 8(2) of the Competition and Fair Trading Act, conduct an investigation to determine whether or not the alleged conduct has violated the law. In particular, the purpose of the investigation is to establish the following:

  1. Whether or not, Alliance in Motion Global is setting up and promoting pyramid schemes in Malawi.
  2. Whether or not, the alleged pyramid selling of goods and services by Alliance in Motion Global violates the Competition and Fair Trading Act and Consumer Protection Act.

In view of this, the Commission hereby invites all interested stakeholders and the public to submit any information they may have on the pyramid schemes allegedly run by Alliance in Motion Global or associated enterprises. Submissions may include information on the following:

  1. what type of pyramid schemes are on the market;
  2. which products (goods or services) are involved in the schemes;
  3. which individuals/enterprises are involved setting up and promoting pyramid schemes (names, postal address, physical address, phone numbers etc

The submissions can be made using the address below:

The Executive Director, Competition and Fair Trading Commission, Mpikisano House, Behind NBS Bank, Area 4, Private Bag 332, Lilongwe

Telephone: +265 1 759 506/507;

E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it.

The information you will make available to the Commission shall be treated with the strictest confidentiality and will only be used for the purpose of this investigation. If you wish to seek further details and/or clarification on any aspect of this investigation, you may get in touch with Mr Augustine Nyirenda on 0999830855 or email This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it.

CHARLOTTE WEZI MALONDA

EXECUTIVE DIRECTOR

COMMEMMORATION OF THE 2018 WORLD CONSUMER RIGHTS DAY

15th March every year is World Consumer Rights Day. This is the Day that consumer protection agencies advocates for consumer rights such as the right to choose, right to safety, right to be informed, right to redress, right to environmental health and right to consumer education among others.

 

This year, the Competition and Fair Trading Commission (CFTC), a Government agency mandated to promote competition and protect consumers from unfair trading practices, will lead Malawian in commemorating World Consumer Rights Day under the theme “Consumer Rights in Financial Services”.

 

The theme is deemed appropriate for Malawi since the country is currently experiencing a boom in financial services such as mobile money transfers, auto teller machines, mobile bill payments, point of sale (POS) transactions and online shopping.

 

In accessing these services, consumers face a number of challenges. These include: multiple service charges, unrealistically high bank charges, accounts not debited upon undertaking a transaction, clients not receiving the money once transferred, ATMs not dispensing cash but yet deducting from the account, transactions not taking place because of weak networks, lack of agents and infrastructure in rural areas etc.

 

The Commission will therefore take the commemoration of this year’s World Consumer Rights Day to highlight the rights of financial services consumers and the available redress mechanisms when their consumer rights have been violated.

 

The main event to commemorate World Consumer Rights Day will be in Mzuzu on 16th March 2018. During the event, activities will include a consumer parade within the City, consumer storming in the major townships - Zorozoro, Luwinga, Chibabvi and Masasa; traditional dances, poetry recitals and music.

 

Speakers will include the Director of Trade in the Ministry of Industry, Trade and Tourism Mrs Christina Chatima and the Executive Director of the Competition and Fair Trading Commission, Mrs Charlotte Wezi Malonda.

 

For more information, contact Mr Innocent Helema on 0880725075 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Charlotte Wezi Malonda

EXECUTIVE DIRECTOR

ESTABLISHMENT OF A REGIONAL OFFICE IN BLANTYRE

The Competition and Fair Trading Commission (CFTC) wishes to inform the business community and consumers that it has opened a Regional Office in Blantyre. The offices are situated in the New Government buildings, 3rd Floor, Right Wing in the Ministry of Industry, Trade and Tourism offices.

 

The Regional Office will register and process consumer complaints with a view to providing remedies provided under the Competition and Fair Trading Act (CFTA) and the Consumer Protection Act (CPA). Additionally, the office will also support the business community in the promotion of voluntary compliance with CFTA and CPA.

 

In view of this, the Commission wishes to appeal to consumers and the business community in Blantyre and the surrounding districts to make use of our Regional Office in the South to access our services.

 

If you have any consumer or competition related complaints or queries, you may visit our offices or get in touch with Lusungu Sanga on 0882889521 and email: This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it. .

 

However, the postal and physical address for the Secretariat remains the same. The Executive Director, 1st Floor Mpikisano House, Off Mandala Street, P/Bag 332, Lilongwe 3; Tel: +2651759506/7; Toll Free Line (MTL): 80008333

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

CHARLOTTE WEZI MALONDA

EXECUTIVE DIRECTOR

 

SOUTH AFRICA RECALLS POLONY AND OTHER PROCESSED MEAT PRODUCTS

The Competition and Fair Trading Commission wishes to inform the general public that health authorities in South Africa have ordered an immediate recall of ALL processed meat products produced in South Africa. (Source: https://www.enca.com/south-africa/supermarkets-begin-mass-meat-recall)

According to published media reports, the recalled products are processed meat products that are sold ready to eat (also known as polony), which are produced by Tiger Brands Unit - Enterprise Food and RCL Foods. These products are sold within South Africa as well as exported to other countries.

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CFTC WINS 2018 WORLD BANK / ICN COMPETITION ADVOCACY CONTEST

The World Bank Group and the International Competition Network (ICN) has named the Competition and Fair Trading Commission of Malawi as winner of the 2017/18 Competition Advocacy Contest.


Held under the theme “Closing the gap through competition advocacy: microeconomic policies, macroeconomic implications”, the contest was aimed at highlighting the key role competition agencies play in promoting competition by showcasing their advocacy success stories. 

The CFTC entry into the competition advocacy contest was a story that underlined the importance competition authorities play in ensuring that the effects of trade protection measures benefit competition and ultimately safeguard consumer welfare, with a case study of the cement industry in Malawi.

The CFTC intervention in the cement industry in Malawi contributed to the prevention of the establishment of import barriers to cement.

Making the announcement, Martha Martinez Licetti, Global Lead on Markets and Competition Policy at the World Bank Group, said the CFTC's advocacy story was selected as Winner under the theme “Reaping the benefits of globalisation and trade openness”.

Licetti said:

“This is a great story in a key market that is typically subject to competition issues. Your intervention illustrates the benefits of the involvement of competition authorities in the decision on trade protection measures, and the importance both locally and regionally. Great example to share in the region and beyond. Well-deserved and keep up the good work.”

Reacting to the announcement, CFTC Executive Director, Charlotte Wezi Malonda said she was delighted with the recognition which she described as a big victory.

Malonda said the entry of foreign companies in the cement industry led to relatively lower prices as consumers enjoyed the benefits from economies of scale and efficient production systems.

Other winners in the competition from a total of 50 entries from 30 jurisdictions include the United Kingdom, Kenya, Brazil, Russia and Argentina while the European Competition Commission and Mexico received an honorable mention.

This is the third time that the World Bank and the ICN have recognized the CFTC in its role in safeguarding competition. In 2015 and 2016, the CFTC was awarded for its role in safeguarding competition in the sugar and credit referencing markets.

Locally, last year, the CFTC was awarded for its outstanding public service delivery for the second year running. The Commission has also received other performance related awards from the Anti Corruption Bureau and the Malawi Confederation of Chambers of Commerce and Industry (MCCCI).

For more information, contact Mr. Innocent Helema on 0880725075 or email This email address is being protected from spambots. You need JavaScript enabled to view it.

MISLEADING PROMOTIONS DURING THE FESTIVE SEASON

The festive season to commemorate Christmas and the New Year brings a lot of excitement and joy to consumers. Usually, traders announce a range of promotions, including massive discounts on products and services.

Some promotions may be genuine while others are not in good faith. Further, some traders will want to increase sales by engaging in some unfair trading practices. These practices are those which adopt any unfair method or unfair or deceptive practice for the purpose of promoting the sale, use, supply or provision of goods and services. Some promotions are deceptive and harmful to consumers as traders strive to cheat consumers through false and misleading representations.

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CFTC COMMEMORATES WORLD COMPETITION DAY

On 5th December 2017, the Competition and Fair Trading Commission will lead Malawian consumers in commemorating this year’s World Competition Day.

The Day is commemorated annually to rally support and create awareness regarding the role that consumers play in shaping an effective competitive trading regime.

The commemoration of this day dates back to 5th December, 1980 when the United Nations adopted the international standard for competition laws called the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices.

The main event to commemorate the day will take place in Blantyre under the Theme “Fight Bid Rigging in Public Procurement, Grow the Economy”. Bid rigging involves a group of firms that conspire to raise prices or pre-designate bid winners with the aim of maximising their own profits.

The theme has been purposefully chosen in acknowledgement of the important role that efficient public procurement systems can play in fostering social and economic development. Studies have shown that about 40% of the Government's annual budget is spent on public procurement of goods and services that are used to deliver public services to the citizenry. Studies have further shown that improvement in public procurement systems can help the Malawi Government save about US$24 million per year.

Therefore, the Commission reckons that an agenda to detect, report, mitigate and fight bid rigging would save a lot of money for the country’s development.

In line with provisions of the Competition and Fair Trading Act, the Commission will investigate all complaints of suspected bid rigging in the market and impose appropriate sanctions to offenders.

The Commission is appealing to all Government Ministries, Departments and Agencies, private sector, consumers, NGOs, international institutions and the general public to join hands in commemorating the 2017 World Competition Day.

Activities on the Day will include a consumer parade from College of Medicine to Trade Fair Grounds, traditional dances from Chichiri Prison Troupe, poetry and drama. The event will be presided over by the Minister of Industry, Trade and Tourism Hon Henry Mussa, MP.

For more information, contact the Commission on 01 759 506/7 or email This email address is being protected from spambots. You need JavaScript enabled to view it. .

Charlotte Wezi Malonda

EXECUTIVE DIRECTOR

CFTC TO LAUNCH THE FRAUD AND CORRUPTION PREVENTION POLICY

The Competition and Fair Trading Commission is a public agency charged with the responsibility to promote competition and fair trading in Malawi through the enforcement of the Competition and Fair Trading Act and the Consumer Protection Act. In its effort to fight fraud and corruption in the country, the Government of Malawi put a requirement that every public institution should establish an Institutional Integrity Committee (IIC) responsible for spearheading the fight against fraud and corruptionby staff, clients and stakeholders  when transacting any business. The Commission’s IIC, in collaboration with the Anticorruption Bureau (ACB), has so far facilitated awareness meetings and trainings for the committee members and staff; and has also developed the Fraud and Corruption Prevention Policy.

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