On 27th January 2025, the Commission officially commenced investigations against Wayezu Donald trading as “Yanu-Yanu Agro-dealer” of Nkhoma Trading Centre, Lilongwe, for allegedly engaging in misrepresentation of products, misleading conduct, and unconscionable conduct. The investigations were instituted following findings of a shop inspection exercise.
During the shop inspection exercise, it was found that the Respondent’s shop located at Nkhoma Trading Center in Lilongwe was supplying fertilizer which appeared to be counterfeit. The fertilizer that the Respondent was supplying was branded as “Falcon fertilizer” which is supplied by Export Trading Group (ETG). However, it was noted that the fertilizer was distinctively different from the Falcon fertilizer supplied by ETG.
The Commission noted that the conduct by the Respondent had the effect of deceiving consumers into purchasing fertilizer which is not suitable for the intended purpose.
Investigations were launched on the basis that the Respondent’s conduct appeared to amount to falsely representing that products are of a particular style, model or origin in contravention of Section 51 (c)(ii), misleading conduct in contravention of Section 51(d) and unconscionable conduct in carrying out trade in goods, digital products and services contrary to Section 51 (g) of the CFTA.
Investigations by the Commission established the following:
- The Respondent admitted to have re-packaged Optichem fertiliser in ETG fertilizer bags themselves using a machine but before selling, they would inform the customers that the fertilizer had been repackaged.
- The machine was not bought for the purpose of repackaging to deceive people but because they also farm and grade soya and maize.
- The Respondent engaged in the conduct of misrepresenting fertilizer supplied by Optichem as Falcon Fertilizer supplied by ETG. The Respondent thus engaged in the conduct of misrepresentation of products. In the same vein, the conduct by the Respondent resulted in misleading the public as to the characteristic and quality of the fertilizer that was being supplied. The Respondent, therefore engaged in misleading conduct.
Upon deliberations, the Commission made the following Orders:
- Order the Respondent to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in misrepresentation of products, contrary to section 51 (c) (ii) of the CFTA.
- Order the Respondent to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in misleading conduct, contrary to section 51 (d) of the CFTA.
- Order the Respondent to pay a monetary penalty of equivalent of 1% of their annual turnover to the Commission for engaging in unconscionable conduct, contrary to section 51 (g) of the CFTA.
- Order the Respondent to submit to the Commission their audited financial statements for the last accounting year (or in the alternative, their financial records for the last accounting year) for assessment and calculation of the penalty within 14 days.