The Competition Tribunal has dismissed an appeal by Royal Mabati Factory Limited (RML) in which they wanted an order requiring them to pay Sh2,652,363 penalty for misleading customers quashed.
RML had moved to the Competition Tribunal to challenge the penalty made by the Competition Authority of Kenya (CAK) on May 21, 2020.
CAK carried out investigations on Royal Mabati after its customers filed various complaints about its services.
"On various dates between March 2018 and March 2020, CAK received 13 complaints from customers of RML regarding the failure of or delayed deliveries and requiring customers to pay a delivery fee, despite advertisements indicating that the service was free countrywide," the Authority said in a statement on Tuesday.
"The manufacturing company also allegedly forced its customers to change order specifications post-purchase," CAK added.
In May 2020, the Competition Authority decided that Royal Mabati had infringed the aforementioned provisions of the law.
RML, however, dismissed the allegations and infringed a CAK Cease and Desist Order that required them to stop running their free delivery advertisements.
In addition to the monetary penalty, the roofing factory will be required to restitute the aggrieved customers through refunds within 60 days or free delivery of the products in 30 days.
"Royal Mabati is now required to refrain from running misleading advertisements and sensitize its Sales and Customer Care Team about the provisions of the Competition Act," CAK said.
CAK said the ruling will discourage suppliers from engaging in conduct that misrepresents the terms of a transaction to consumers.
"It will encourage implementation of robust and fair complaints redress mechanisms," the Authority added.
