Kenya: Govt. regulatory agency fines Artcaffe Coffee and Bakery for undisclosed misrepresentation to customers
Author: Business Daily (Kenya), Published on: 6 November 2018
"Artcaffe pays fine for misleading customers"
The competition watchdog has penalised Artcaffe Coffee and Bakery Limited for making misleading presentations to its customers. The regulator in a brief gazette notice says that Artcaffe has undertaken to refrain from engaging in any conduct that is in contravention of competition laws. “The Competition Authority of Kenya initiated investigations… against Artcafffe Coffee and Bakery Limited and has entered into a settled agreement with the company pursuant to section 38 of the Competition Act,” reads the notice signed by CAK Director General Wang’ombe Kariuki.
The notice states that Artcaffe paid a fine of Sh79,097. CAK did not provide more details about the nature of the offence only indicating that investigations commenced pursuant to section 55 of the Competition Act 2010. The restaurant chain’s chief operating officer Yaniv Notea had not responded to text message queries on the matter by the time of going to press. Artcaffe opened shop in Kenya in 2009 and has expanded mainly in high-end shopping malls. In 2014 it took over Dormans Coffee seeking a wider presence in Nairobi and Mombasa. Section 55 of the Act states that “a person commits an offence when... (he) makes false representation regarding quality, value, grade and model of goods.”