The Competition and Fair Trading Commission has fined Airtel Malawi over K2.1 billion for what they call unconscionable conduct in the Khethekhethe bonus system after the company introduced procedures of redeeming the bonus on a specified date every month.
This has been confirmed in a statement released and made available to faceofmalawi.
According to CFTC, the consumer right body received a complaint on the matter and launched investigations which established the unfairness on the part of customers, between 2018 and 2021, who were missing out on the bonuses if they didn’t redeem as opposed to previous system that automatically credited customers their accrued bonuses.
“It was alleged that the respondent (Airtel Malawi) stopped automatically crediting customer accounts with monthly bonuses, instead, it was alleged that customers were required to apply for the redemption of their bonuses on the 14th of every month.
Consequently, who for one reason or another did not redeem their bonuses, had them forfeited,” said CFTC Acting executive director Apoche Itimu.
According to CFTC, Airtel made income of over K2.1 billion in unclaimed bonuses which were sold back to customers hence the fine.
“The Commission therefore ordered Airtel to pay a fine of K2,113,099,660 for engaging in unconscionable conduct in the trade of goods and services.This represented financial gain generated from the offence,” added Itimu.
Meanwhile Airtel is yet to comment on the matter.
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