On 28th August, 2020, CFTC received a complaint from Adonai Peter alleging that Grace of God Shopping Centre was engaging in an unfair trading practice in the supply of imported second hand bales (kaunjika) of clothes.
Allegedly, on 28th August, 2020, the complainant bought a bale of polyester dresses from Grace of God Shopping Centre worthy MK190,000.00. However, when the Complainant opened the bale, he discovered that the bale contained cotton dresses and not polyester dresses.
Since August 2020, the Commission had been receiving complaints from different Kaunjika retail traders against the Respondent totaling 12.
The complainants alleged that the Respondent had been supplying bales, whose contents were different from what was labelled on the packaging material. Further, the complainants alleged that the Respondent was selling dirty and tattered clothes to customers which could not sell on the market.
The Secretariat investigated the matter under Section 43(1)(b) and 43(1)(g) of the CFTA. The investigation found that the Respondent’s conduct was tantamount to excluding liability for defective goods; misleading conduct; but also unconscionable conduct.
Following deliberation, the Commission ordered the following:
- That the Respondent should refund the money used to purchase the defective bales of Kaunjika to all the complainants.
- 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; misleading conduct; but also unconscionable conduct.
- That the Respondent should pay a fine of Five Hundred Thousand Malawi Kwacha MK500,000.00 for being uncooperative with the Commission during the investigations.