By Andrew Phiri

Balaka, July 18, Mana: Competition and Fair Trading Commission (CFTC) has said the amendment of Competition and Fair Trading Act (CFTA) of 1998 to new Act of 2024 will help create and promote a conducive environment for local businesses and consumers in Malawi to enjoy their rights on trading activities.

CFTC Chief Analyst for Consumer Affairs, Augustin Nyirenda said this on Wednesday in Balaka during the awareness engagement meeting with district council stakeholders on the amendment of the CFTA Act.

Nyirenda said the new law which became operational on July 1, 2024 has been established to align with recent developments in the enforcement of competition and consumer protection law; hence, reflecting current market dynamics such as technology.

"Previously, the law had provisions that were difficult to enforce because of their ambiguity and predictability.

"But in the new law, we have brought in several provisions that are trying to adapt with the recent times to ease the business competition and consumer protection in Malawi such that enforcement has been made easier and predictable," he said.

Nyirenda, therefore, urged all businesses to avoid anti-competitive and collusive trading practices, saying this violates consumer rights.

He said: "The new law has also extended to the protection of consumer rights such that it encompasses more categories of consumers.

"For example, some businesses deliberately withhold goods to create scarcity and overpricing, this new law has power to demand a monetary fine of 10 and 5 percent of gross annual turnover from companies and individuals engaging in such misconduct respectively.

Balaka District Council Assistant Trade Officer, Chifundo Kambwembwe thanked CFTC for the development, saying it will help the council to regulate business operations in the district.

Kambwembwe, however, asked the commission to bring in more parties in the awareness of the newly amended Act.

"We do hope that this will not be the first and last time they are coming to enlighten us on this law but that they will be constantly monitoring how traders and consumers are benefiting from this law," she said.

CFTC was established under the CFTA of 1998 mandated to encourage competition, promote efficiency and protect Malawian consumers in the economy and the amendment of the Act is an attempt to meet international standards in the enforcement of competition and consumer protection.