The Competition and Fair Trading Commission (CFTC) says it is against the law for traders to fix prices or collectively agree on what to charge. Speaking during one of the meetings with traders in Nkhotakota last week, CFTC Acting Director of Competition, Fexter Katungwe, said agreeing on prices or any terms as traders or as members of an association is against the Competition and Fair Trading Act (CFTA).
“Whether you are selling meat, tomatoes or clothes, it is against the law to agree on prices. Actually, any category of agreements, decisions and concerted practices which may distort competition is a violation of the CFTA,” said Katungwe.
Speaking during a similar meeting in Mwanza, CFTC Chief Consumer Analyst, Augustine Nyirenda, said although it is not a violation to be a dominant supplier, it is wrong to abuse the power.
“It is wrong for firms to abuse their market powers by, among others, preventing the entry of others into a market, or exploiting consumers through exorbitant prices or compromised quality of products” said Nyirenda.
Last week, CFTC led Malawians in commemorating this year’s World Competition Day under the “Role of Competition in Enhancing Economic Recovery”.
As part of the commemorations, CFTC organized meetings with traders to sensitise them on competition and consumer protection. The meetings were held in Mzuzu, Mzimba Nkhotakota, Mwanza and Mulanje.
