On 28th May, 2021, the Commission received a complaint alleging exclusion of liability for defective goods and unconscionable conduct by Joko Electric Company Limited.
It was alleged that the complainant purchased a distribution electric transformer from the Respondent at K3,000,000.00 with a one year guarantee. The Complainant alleged that ESCOM advised that the transformer was faulty.
Joko’s technicians worked on the transformer to rectify the problem for which the complainant was charged K400,000.00, which the complainant paid. However, when it was tested by ESCOM officials, the transformer did not function properly. After reporting to the complainant that the transformer was not working properly, Joko advised the complainant to take the transformer to any technician and that they would share the costs which amounted to K3,075,040.80. However, Joko only paid a total of K1,500,000.00 towards the full costs of repair.
Following deliberations, the Commission found that the Respondent was liable for excluding liability for defective goods, which is in contravention of section 43(1)(b) of the Competition and Fair Trading Act (CFTA) and for engaging in an unconscionable conduct towards the complainant in contravention of section 43(1)(g) of the CFTA.
In view of the foregoing, the Commission resolved to issue the following orders against the Respondent:
- That the Respondent should pay the Complainant K1,975,040.80 being the balance for repairing the faulty transformer;
- That the Respondent should pay Five Hundred Thousand Kwacha (MK500,000.00) to the Commission being a fine for engaging in excluding liability for defective goods;