The Competition Authority of Kenya(CAK) has directed Fly540 to cease advertising flights on all its platforms following complaints from consumers.
The competition watchdog noted that it had received over 50 consumer complaints lodged against Fly540 after undertaking a market screening into consumer-related infringements.
Some of the allegations against the airline are false and misleading information on its capability to provide air transport services to passengers and the possibility of amending flight itinerary; arbitrary and/or short notice cancellation of flights and Inordinate delays in refunding consumers.
“In furtherance of achieving its consumer protection mandate, the Authority has issued a cease and desist order against Fly540 following the sustained complaints, and in order to prevent them from engaging in any consumer-related infringement,” CAK said in a statement.
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The airline has also been directed not to receive any flight bookings from the Public or travel agents until the ongoing investigations are completed.
Fly540 has also been ordered to refund customers with outstanding ticket refund claims by November 30, 2022.
CAK noted that the ongoing investigations into the allegations against Fly540 are interrogating whether the airline has contravened section 55 of the Competition Act outlawing false and misleading representation as well as section 56 on unconscionable conduct while undertaking its commercial activities.
SOURCE: Capital business
