MASM, Malawi radio stations probed over misleading adverts – CFTC

The Competition and Fair Trading Commission (CFTC) which has issued a strong warning to the Medical Aid Society of Malawi (MASM), and some local radio stations for allegedly broadcasting false and misleading adverts,  says it is investigating the matter.

Malonda: CFTC investigating Masm, radio stations over false adverts

CFTC says it has  received  numerous complaints from members of the public that consumers have been charged shortfalls on medical expense and consultation fees; this is despite MASM’s claims that there would be no shortfalls payable by its members.

In January this year, MASM adopted a new approach entitled “No Shortfall,” and indication that MASM clients were no longer required to pay shortfalls on all medical services including consultation, laboratory, scanning, and hospital admission. This is  in line with each scheme’s terms and conditions.

MASM members however, have been surprised that in several hospitals and clinics they are still being charged shortfalls on medical bills and consultation fees. They feel they are being duped.

CFTC executive director, Charlotte Wezi Malonda  said they have launched an investigation into the matter.

She said the commission s asked Masm and radio station to stop broadcasting false and misleading statements to customers.

“The CFTC observes that the conduct of providing false information or suppressing crucial information is grossly deceptive, unfair, and unreasonable,” Malonda said.

Malonda said the Commission is aware that MASM has not scrapped off the shortfalls on medical bills to members, contrary to claims that the Society has been making in radio advertisements over the past few months.

“By claiming that MASM has scrapped off shortfalls, while in practice demanding that members pay shortfalls on medical and consultation bills, the Society has left consumers deceived and swindled. This is a serious offense under the Competition and Fair Trading Act, Cap 48:09 of the Laws of Malawi.

“In particular, Section 43(1)(d) of the Competition and Fair Trading Act (CFTA) which states that ‘A person shall not, in relation to a consumer engage in conduct that is likely to mislead the public as to the nature, price, availability, characteristics, suitability for a given purpose, quantity or quality of any products or service’ and Section 43(1)(k) which states that ‘A person shall not, in relation to a consumer put out an advertisement which is misleading or deceptive’ ”, reads the statement by  Malonda.

“In view of this, the Commission hereby directs MASM to immediately cease and desist from further broadcasting or publishing this deceptive advert until otherwise advised in writing by the Commission,” Malonda said.

“The law further requires every advertiser to provide consumers with true, adequate, clear, and prompt information on the goods or services offered so that consumers can make proper and informed choices,” she said.

But MASM Chief Executive Sydney Chikoti, said he did not have any knowledge on the matter and argued that the institution has not been served with an official communication from CFTC and MASM members.

He however, said that he had warned MASM members when launching the product, to be careful when accessing medical services that ensured that they are not duped or overcharged.

CFTC is an autonomous agency of the government mandated to regulate, monitor, control, and prevent acts or behavior which are likely to adversely affect competition and fair trading in Malawi.

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10 thoughts on “MASM, Malawi radio stations probed over misleading adverts – CFTC”

  1. Cuthbert Kaunda says:

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  2. Weni Weni says:

    Malonda is the only parastatal CEO who is working for the common good. Government should deploy her to MACRA or TCC so that she can fix the problems in the telecommunications or tobacco industry. Inu a Itaye ku MACRAko kapena a Changaya ku TCC mukuona zimene akuchita mzimayi?

  3. mtete says:

    Medhealthb eh?.Tiona Mr. Seer

  4. The Seer says:

    Just join Medhealth (Formerly Metropolitan Health). Mavuto onsewa kulibe.

  5. mtete says:

    Akamuna A Pa Chonde, at the rate we are performing health care wise in Malawi, I don’t mind getting a good service at a MASM clinic. By the way, which other health service provider, where you can receive good attention, is MASM stealing business from?

  6. Kalulu says:

    Masm is the worst, it has a crooked management. kuba too much.
    Paid up members are denied access to medication because their names are missing in the database.

  7. Kalulu says:

    also investigate on Masm corrupt behaviour where paid up members are not included on their database and they are denied access to medication. This means ndalamazo amangodya. Mzuzu med clinic is the worst in terms of customer care and rejecting paid up members. Just close Masm and let better companies come in. La 40 lakwana.

  8. benjones says:

    Malawi land of greed

  9. Akamuna Apa Chonde says:

    CFTC can you also please explain to us Malawians about the same MASM on the issue of being the medical insurance company or oraganisation and at the same time being medical service providers. Is this not compromising the services or conflict of interests? Are they not duping people twice or not taking others businesses and responsibilities? Does our laws allow such kind of practices? Am not sure and clear on such issues, so please help us CFTC. i have in my mind the motor vehicle insurance companies who are insuring peoples’ cars and at the same time they say we have opnned garages to sell cars and do repairs to cars. Please CFTC school me

  10. mtete says:

    I was shocked when asked early this month to pay a huge bill as a shortfall at one of the prominent hospitals in town

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