In February 2021, CFTC commenced investigations against Speedy’s Food Industries Ltd for alleged exclusion of liability for defective goods and unconscionable conduct in the trade of goods and services.
The Respondent did not display their products (eggs) on the shelf in one of their shops thereby denying customers an opportunity to inspect the eggs first before they make a decision whether to buy or not.
When consumers want to buy eggs, the Respondent demands payment first and the consumer is issued with a receipt which is given to the shop assistants to collect eggs from the back-store and hand them over to the consumers.
Often times, the consumers found that some of the eggs handed over to them were damaged. When they complained about the damaged eggs, the Respondent refused to exchange them, citing a no-exchange disclaimer posted in the shop.
The investigation established that the Respondent’s shop had a clear disclaimer on liability for damages which is an infringement of Section 43(1)(b) of the CFTA.
The Respondent’s conduct also amounted to unconscionable conduct in carrying out trade in goods and services contrary to Section 43(1)(g) of the CFTA.
The Commission therefore ordered that the Respondent should pay a fine of five hundred thousand Malawi Kwacha (MK500,000.00) for engaging in exclusion of liability for defective goods and unconscionable conduct in carrying out trade in goods and services.