Report anti-competitive trade practices – CFTC

The Competition and Fair-Trading Commission (CFTC) has called upon people in the country to be very proactive in reporting any possible violations on anti-competitive trade practices regarding sugar.

The call follows a snap inspection in selected markets conducted by the Commission regarding the product which has revealed that some suppliers are hoarding sugar at distributor level.

Reads a statement issued by CFTC Executive Director Lloyds Vincent Nkhoma: “CFTC has noted with concern reports regarding the proliferation of anticompetitive and unfair business practices emanating from the alleged shortage of sugar on the market.

“During these inspections, the Commission found that some suppliers are engaging in the following malpractices among others hoarding of sugar at distributor level, exorbitant pricing of the product beyond the recommended retail price, tying the purchase of sugar to the purchase of other products, charging higher prices for sugar while issuing lower valued receipts.”

The business malpractice comes amid scarcity and exorbitant pricing sugar in most parts of the country.

Nkhoma said the malpractices involving hoarding, excessive pricing, tying, misleading consumers as to price of a product with the view to take advantage of a situation, are violations of the Competition and Fair Trading Act (CFTA).

But reacting to the development through privately owned media house – Zodiak Broadcasting Station (ZBS) Illovo Sugar Malawi plc managing director Lekani Katandula said the company has not adjusted sugar prices.

Katandula added that the ministry responsible for trade is mandated to act on some traders who are engaging in business malpractices by charging exorbitant prices.

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