CFTC rolls out price monitoring exercise after devaluation

The Competition and Fair-Trading Commission (CFTC) says it has formally approached 19 manufacturers and suppliers of products and services to explain the rationale behind high price adjustments.

The development follows price monitoring exercises across the country`s major cities and towns CFTC has been conducting to gather evidence of the violation of the Competition and Fair-Trading Act (CFTA) through excessive price increases following the 44 percent kwacha devaluation two weeks ago.

“While it is obvious that any devaluation of the currency may trigger an upward adjustment of the pricing of goods or services, the CFTC has noted that some of the price increments observed this far depict a trend of possible opportunism aimed at using the devaluation of the local currency as a scapegoat to exploit consumers,” reads a statement issued by the Commission`s executive director Lloyds Vincent Nkhoma.

According to Nkhoma, the Commission has also engaged the relevant regulators on the same.

He said: “This is the normal first step in the due process that the CFTC always follows before commencing a full investigation where the evidence points to a possible violation.

“The CFTC, in collaboration with the Ministry of Trade and Industry as well as Ministry of Local Government, Civic Education and Culture, is now expanding this price monitoring exercise to the districts and rural trading centres of the country to establish and gather evidence of possible violations of the CFTA.”

CFTC is now expanding this price monitoring exercise to the districts and rural trading centres of the country to establish and gather evidence of possible violations of the Act.

The Commission has since informed the general public and the business community that should any supplier of goods and services be found to be engaging in excessive pricing contrary to the CFTA, the CFTC will not hesitate to issue relevant penalties and sanctions for such conduct as provided for under the law.

Meanwhile, consumers and the general public have been encouraged to report any suspected violation of the CFTA through CFTC`s toll free line 2489 or send a WhatsApp message to +265987738749.