CFTC launched investigations against Central Poultry (2000) Limited for alleged unconscionable conduct and misuse of market power in the supply of day old chicks.
There were two complainants in the matter. The Commission found that one complainant ordered 160 day old chicks from Central Poultry at a total cost of MK104,000.00 and paid a deposit amount of MK90,000.00.
When she went to collect the chicks, Central Poultry requested her to pay a top-up amount of MK8,000.00 on the premise that the Respondent had increased prices.
Another complainant ordered 110 broiler chicks from Central Poultry and paid a total sum of MK66,000.00. However, prior to the agreed date of collection, Central Poultry requested her to make an additional payment of MK11,000.00, also on the premise that the price had increased.
Following deliberation, the Commission not liable for unconscionable conduct but found the Respondent liable for misuse of market power and issued the following orders against the Respondent:
- That the Respondent should refund the first complainant a total sum of MK8,000.00.
- That the Respondent should refund the second complainant a total sum of MK11,000.
- That the Respondent should pay a fine of MK500,000.00 for engaging in abuse of market power or market dominance.