Competition Authority warns of impersonators defrauding businesses

The Competition Authority of Kenya (CAK) has raised alarm over individuals and organisations that it says are defrauding businesses under the guise of conducting compliance checks in the pretence of affiliation with the Authority.

In a public notice on Friday, CAK said it has received numerous complaints from retail operators based in Mombasa, Embu, Machakos, Ruiru, Nyeri and Meru, with the traders lamenting of incidents of invasions into their business premises, confiscation of merchandise, on-the-spot fines as well as alleged arrests.

In particular, the watchdog flagged an entity named ‘Multi-Works and Rights Enforcements’ which identifies as a consumer rights organisation, saying it is not among the consumer bodies recognised or supported by the Authority under Section 9 of the Competition Act.

“The Authority is engaging the relevant security agencies in ongoing investigations into the cases of impersonation and other illegal acts, including reviewing the circumstances of the complaints received from various business owners,” wrote CAK in the notice.

CAK says that all its staff, dispatched to conduct market surveillance, must officially identify themselves and, where applicable, produce documentary information confirming the authenticity of their assignment.

“Business owners confronted by individuals claiming to work for the Authority, and who fail to identify themselves or their assignment, confiscate goods, purport to issue on-the-spot penalties, threaten arrests, or solicit bribes, should immediately report the matter to the nearest police station,” the Authority said.

Further, the watchdog said all search activities it conducts are always sanctioned through a search warrant issued by the High Court, and that they are always carried out in the presence of security officers.

“The businesses targeted in the search, or their legal representatives, are afforded an opportunity to inspect the court warrant. Our staff members do not possess arresting powers.”

The Authority also said that it never imposes on-the-spot penalties or fines.

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