The Competition Authority of Kenya (CAK) has ordered Fly540 to cease its operations over allegations that the airline has violated consumer rights and its operation certificate expired in September.
The CAK issued a press release on Wednesday ordering Fly540 Limited to cease and desist from operating and advertising its services to customers.
“Pursuant to Section 31 and 70A of the Competition Act of 2010, the authority undertook market screening into consumer-related infringements emanating from over 50 consumer complaints lodged against the airline Fly540 Limited (Fly540),” the statement read in part.
The Competition Authority said that it was acting according to its mandate to enforce the Act and ensure the welfare of Kenyans is protected. Under the Competition Act, the CAK is responsible for protecting consumers against unfair and misleading market conduct. It also promotes competition and sanctions firms that abuse market power.
In the recent past, Fly540 has been accused of providing customers with misleading and false information about its capability to provide air travel services, something that goes against consumer protection laws in Kenya. The firm is also guilty of giving short notices and cancelling flights, as well as delaying customers’ refunds.
All companies operating in Kenya are required to provide accurate information. The Competition Authority also prohibits misrepresentation of information and false advertising.
The CAK also said that the Fly540’s operating certificate/licence expired in September.
As the company continues to investigate whether Fly540 has violated the provisions of section 55 of the Competition Act, the airline is directed to stop advertising bookings through electronic, print, and social media channels.
The company is also ordered not to receive flight bookings while the Authority is continues investigations.
Furthermore, the CAK ordered Fly540 to refund customers who have outstanding refund claims by the end of November.