Companies

Consumer lobby sues Nakumatt over pricing discrepancy complaints

The Consumer Federation of Kenya (Cofek) has taken Nakumatt Holdings to court over discrepancies in the shelf and point-of-sale pricing of its commodities.

The watchdog has sued the retail chain and its managing director, Atul Shah, over what it terms as unfair business practices and false representation of goods.

Cofek wants the High Court to order an independent audit into three of the retail chain’s branches in Nairobi to determine the extent of the shelf and till price discrepancies.

“For the entire month of May, Cofek started receiving more complaints about the shelf and till price discrepancies at Nakumatt outlets through social media as well as e-mail. This later intensified into what was christened #NakumattOnTrial scam on both Twitter and Facebook,” says the lobby group in court documents.

Cofek wants an audit of the retail chain’s outlets in South C, Nakumatt Junction and Nakumatt Lifestyle within the central business district.

The lobby has also sued the Kenya Bureau of Standards, the Competition Authority of Kenya and the Attorney General for alleged failure to take up the matter yet they are mandated by law to protect consumers’ rights.

Cofek now wants the court to compel the retailer to form regulations on the standards and size of price display stickers and the process of adjusting prices. The regulator also wants Nakumatt and other supermarkets to provide customers with exact change after sale.

“That this court hereby orders Nakumatt and similar businesses to stop offering unsolicited sweets in place of currency coins as net balance or change due to shoppers after any purchase,” Cofek says in the court papers.

Justice Mumbi Ngugi ordered a hearing with all parties on June 22.