The Collective Proceedings Act, which gives better chance for effective remedy to consumers by facilitating justice, will come into effect as from 1 August, announced Jason Azzopardi, Minister for Fair Competition, Small Business and Consumers.

At a news conference yesterday, he pointed out that the Bill, known as Class Actions, has recently passed with a unanimous vote in Parliament and will be empowering consumers to seek less costly justice.

Under this law, one court case can be filed to seek remedy for a number of interested individuals while one representative appears for them. So far, if a number of consumers are affected by a faulty product, they all need to seek remedy individually, going into separate expenses, whereas this law would allow them to join each other in one case.

There should be at least two people to open a class action by filing an application in court. Consumer organisations can now take action in the name of consumers and the law also makes it possible for SMEs to institute such court cases as they are also consumers in certain ways.

Two types of class actions are possible. The first is by means of a group action and secondly, representative corps like registered consumer organisations, can open such a case without them having a direct interest.

This makes things easier for everyone and increases efficiency, Dr Azzopardi said.

People interested in class actions may seek compensation, request an illegal action to be stopped, and request rectification as a result of consequences of the breach (in simple words meaning consumers can ask for the replacement of a faulty appliance, for instance).

Consumers’ rights emanate from three particular laws – the Competition Act, the Product Safety Act, and the Consumers Affairs Act.

The process for taking class actions is through opt-in proceedings. A court decree would order that a case is a class action and details must be published in the Government Gazette and two papers in Maltese and English, plus in any other media the court may order.

The court may give up to five months time for people to join a class action, even though proceedings would have started. If the necessary justification is presented, consumers may join the class action even after the five months’ period, if the court allows this.

The court may eventually order the party that loses the case to credit the money in a bank account managed by the person or association leading the case.

The loser pays principle applies but there is a concession in favour of consumer organisations as these would be entitled to pay 10-50% less in fees. The same organisations would be exempt from fees to register the class action.

Dr Azzopardi said he hopes consumers will use this law well as it gives them very good tools. Meanwhile, the more consumers’ rights are strengthened, SMEs are encouraged to invest in their business and improve their services.

More information on the Act is available from the Malta Competition and Consumers Affairs Authority, situated at Mizzi House, Blata l-Bajda.