Business and Finance

Commission enforces new fair trading law

Commission enforces new fair trading law

The Competition and Fair Trading Commission (CFTC) has started enforcing the new Competition and Fair Trading Act of 2024, which became effective on July 1.

The law came into force following gazetting of a notice signed by the Minister of Industry and Trade Sosten Gwengwe.

CFTC acting Director of Competition Fexter Katungwe said the new legislation aims to curb the misuse of market power and ensure equitable business practices, promoting fair competition and protecting consumer rights.

“The enforcement of the new law is a crucial step towards fostering a competitive market environment. This legislation aims to prevent the abuse of market dominance and to create a level playing field for all businesses, regardless of size,” Katungwe said.

Addressing a sensitisation meeting with small and medium business operators plying their trade at Kachere Market in Blantyre, Katungwe said the Act would address anti-competitive practices.

They include price-fixing, business conspiracies and monopolistic behaviours which hindered growth of small and medium enterprises.

“The new Act provides the framework for us to take decisive action against those who seek to manipulate the market to their advantage,” Katungwe said.

He said the sensitisation meetings are part of a broader campaign by CFTC to educate business operators on the new legal provisions and implications.

Katungwe further said similar training would be held in other parts of the country to educate businesses and consumers about the changes.

Entrepreneurs were briefed on their rights and responsibilities under the new Act and were encouraged to report any anti-competitive practices they encountered.

Kachere Market Chairperson Roy Willard said the new law is seen as a landmark move in Malawi’s efforts to enhance market efficiency and consumer protection.

“We believe that informed business operators and consumers are crucial to the success of our local economies,” Willard said.

James Masumbu, a vegetable seller at Kachere Market, said the law would address various anti-competitive practices and monopolistic behaviors that have previously hindered the growth of SMEs.

“As a small business owner, I often felt the pressure from larger competitors who engage in unfair practices. This new Act gives us hope that we can compete on equal footing,” Masumbu said.