On 1st March 2021, CFTC commenced investigations against Castel Group (Malawi) Limited on allegations of unconscionable conduct and offering of gifts or prizes with no intention of supplying them.
Castel was running a promotion where lucky winners who, after buying “Carlsberg Special” and “Castel” beers and found a symbol of a bottle of beer inside the bottle top, automatically won a prize of one free bottle of that type of beer.
Castel indicated that they intended to run the promotion, however, the promotion was cancelled. The cancellation of the promotion was not effectively communicated to customers.
Furthermore, the beer that was being supplied on the market was still bearing the promised (beer) prizes inside the bottle tops.
The investigations established that by the time the Respondent supplied the beer, the promotion had already been cancelled. The Respondent knew that the prizes inside the bottle tops would not be given out, but proceeded to supply the promotional products onto the market regardless.
The Respondent, therefore, engaged in the conduct of offering gifts or prizes with no intention of supplying them, which is in contravention of section 43(1)(j) of the CFTA and misleading advertising, which is in contravention of section 43(1)(j) of the CFTA.
The Commission resolved that Castel should pay a fine of Five Hundred Thousand Malawi Kwacha (MK500,000.00) for engaging in unconscionable conduct and offering prizes with no intention of supplying them.