Company Fined Ksh2.6M For Duping Customers

  • Nairobi residents pictured at Kenya National Archives section of Nairobi CBD.
    Nairobi residents pictured at Kenya National Archives section of Nairobi CBD.
  • An iron sheet manufacturing company has been fined Ksh2.6 million after it was found guilty of duping its customers in the sale of its products.

    In a statement dated Tuesday, March 17, the Competition Tribunal of the Competition Authority of Kenya (CAK) found the company to have duped its customers between March 2018 and 2020 after it promised to make deliveries of the purchased iron sheets but failed to do so.

    The Tribunal stated that the fine was levied on the company for engaging in unlawful business practices.

    AK Manager, Consumer Protection, Boniface Kamiti.
    CAK Manager, Consumer Protection, Boniface Kamiti.
    Competition Authority of Kenya

    "CAK welcomes the ruling by the tribunal to uphold the Ksh2,652,363 pecuniary levied against the company for misleading its customers in violation of the Competition Act No. 12 of 2010," read the statement in part. 

    According to the Authority, the company misled its customers by violating sale terms posted in an advertisement it published on the various local media platforms. Consequently, it had been asked to refund its clients their money.

    "The authority ordered the accused to refund customers with outstanding complaints within 60 days from the determination date or deliver the roofing materials to their preferred premises at no cost," CAK wrote.

    In addition, the iron sheet millers were cautioned against running misleading marketing campaigns and adverts and to train its sales and customer care agents on the provisions of the Competition Act.

    The Authority launched an investigation into the company after 13 customers filed similar complaints citing that the former had failed or delayed to deliver roofing material.

    "They cited it for allegedly failing or delaying to deliver purchased products per agreed terms and requiring them to pay delivery fees despite advertisements indicating that the service was free countrywide.

    "Further, it was accused of forcing customers to vary their iron sheet orders post-purchase," stated CAK.

    CAK noted that the ruling will serve as a lesson to suppliers of goods and services who engage in conduct that misrepresents the terms of transactions to consumers while encouraging the implementation of robust and fair redress mechanisms.

    A person applying the reflective coat on a roof
    A person applying the reflective coat on a roof