Consumer Law

Consumer laws ordinarily regulate the relationship between the trader and the consumer, recognising that there is an imbalance of power between them, and thus they strive to place the two parties on a level playing field. The subject matter involved normally consists of goods and/or services. Advertising, sales practices, warranties and credit terms and conditions adopted by traders can sometimes place the consumer at an unfair disadvantage, especially since most often the former has more experience and considerably more substantial resources than the latter. The main law regulating Maltese consumer law is the Consumer Affairs Act (Chapter 378 of the Laws of Malta) and the regulations promulgated thereunder, all of which are largely based on EU consumer law. The relevant Authority is Malta Competition and Consumer Affairs Authority (MCCAA), which was established in 2011 and which regulates the rights and obligations of consumers and traders, as well as competition law. In addition to local safeguards, the European Consumer Centre of Malta (EEC Malta) promotes the interests of consumers vis-à-vis markets within the European Union.

The body of consumer protection law prohibits deceptive or unethical advertising, and regulates credit financing, leases, sales practices, product quality, debt collection and other forms of consumer transactions. Conversely, traders have a right to legal advice and representation, as well as an effective remedy, especially when they have acted fairly and lawfully and, this notwithstanding, face unjust and/or unfounded accusations brought forward by certain consumers. Traders must also at all times operate within the parameters, and comply with, consumer legislation – not only in their relationship with consumers but with regard to the product or service itself – eg. product labelling, safety standards, etc.

Maltese law allows consumers to take their grievances before the Consumer Claims Tribunal. These usually consist of:

• Defective products and/or inadequate and substandard services

• False description of goods

• Warranties/Guarantees

• Terms and conditions not abided to by the trader, or which are unfair.

• Consumers rights vis-à-vis mergers and acquisitions and competition law

The said tribunal is considered a feasible and efficient ‘out of court’ alternative for settling disputes promptly. Moreover, it has the jurisdiction and competence to determine any consumer claim, on condition that the value of the product or services does not exceed €3500. Additionally, the Tribunal can grant compensation of up to €500 in moral damages for the inconvenience that a consumer may have suffered in obtaining redress. Decisions of the said Tribunal are subject to appeal before the Courts within not more than 20 days from when they are delivered. In cases where the dispute involves a claim exceeding €3500, then a lawsuit before the Courts must be filed.

Our team at Lexvirtualis™ can assist you with reporting the dispute to the relevant authorities, taking your claim to the Consumer Claims Tribunal or to Court, as applicable. If you are a trader, we can assist you with matters ranging from compliance to settlement disputes with not only consumers but also the relevant authorities.

In addition, we offer the following services:

• Drafting of contracts of sale and purchase

• Drafting of warranty / guarantee terms and conditions

• Drafting of out-of-court settlements

• Compliance