The Competition and Fair Trading Commission (CFTC) ordered six companies to pay a total of 361 million kwacha in administrative fines and refund consumers over 126 million kwacha following rulings from its 75th meeting held on 8 May 2026.
Speaking during a news conference in Lilongwe on Monday, CFTC Chief Executive Officer Desmond Kaunda, said the Commission considered fourteen cases, out of which, three were closed at preliminary stage involving unfair trading practices and violations of the Competition and Fair Trading Act.
Kaunda said the decisions aimed at promoting fairness in the market and protecting consumer rights.
“I think the current of affairs is that generally there are low levels of awareness of consumer rights, The public out there is generally not aware of what their rights are as consumers but we might go further to say that even the traders are unaware of what the law provides in terms of consumer rights,” said Kaunda.
He emphasised on the need to intensify awareness on consumer rights to ensure that both the consumers and traders are within the laws.
Among the major rulings, Standard Bank Malawi has been fined 100 million kwacha after being found guilty of unconscionable conduct involving a loan agreement that was altered without proper disclosure. The bank is also required to write off the loan, refund all deductions made from November 2024, and amend unfair contract terms allowing unilateral changes to loan agreements.
FDH Bank has been ordered to refund affected customers and pay a 200-million-kwacha penalty after being found guilty of misleading conduct and unfair contract practices involving changes to Keyman insurance arrangements without proper disclosure and reverse the 120 million kwacha deducted from the complainant’s account as the liability arose from a contract formed through unfair trading practices regarding insurance cover.
In another case, Nitro Phos Limited has been fined 50 million kwacha for supplying defective fertilizer that did not meet Malawi Bureau of Standards requirements, which resulted in crop damage for farmers. The company has also been ordered to compensate affected farmers.
CTS Courier Services has been directed to refund customers the full value of lost items, including courier fees, and pay a 5-million-kwacha penalty after goods went missing in transit.
Kaunda said Modern Dry Cleaners has been fined 3 million kwacha and ordered to refund over 1.4 million kwacha, after damaging customers’ clothing while attempting to limit liability through unfair contract terms.
He added that Urban Realtors Limited has also been ordered to refund 3.8 million kwacha and pay a 3-million-kwacha penalty for failing to allocate purchased plots and withholding key information from clients.
CFTC warned businesses across the country to ensure transparency, fairness in contracts, and full compliance with consumer protection laws, saying continued violations would attract tougher enforcement measures.
The Competition and Fair Trading Commission (CFTC) was established under Section 4 of the Competition and Fair Trading Act with a mandate to regulate, monitor, control and prevent acts or behaviours which would adversely affect competition and fair trading in Malawi.
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