Consumers’ rights have long been one of the main concerns of the European Union. With Malta’s recent accession to the EU, the new directives dealing with this subject were transposed into Maltese legislation with the result that, Maltese people, like all other Europeans, are now enjoying the same protection when buying goods or hiring services. Even more so, protection is now being increased through the setting up of the European Consumer Centre in Malta, which extends coverage to other countries.
The process of dealing with cross-border cases helps to instill more confidence in all Europeans to buy goods from whichever member state they prefer, and enjoy the principle of the free market. Through this centre, one can also seek redress after leaving the country in which one has bought the defective or substandard product or service from.
Through the ongoing efforts of the Information and Client Affairs Directorate within the consumer and competition division, which fall under the responsibility of the Competitiveness and Communications Ministry, consumers enjoy the benefits that these directives have provided. The Consumer Affairs Act protects consumers against rogue traders. It gives them the right for information so that they can make better decisions when purchasing goods. It also gives them the right to seek redress for any shortcomings after purchasing goods or services.
When complaints presented to the Consumer and Competition Division are not amicably solved, the consumer is given the option to follow up his complaint by taking it to the Consumer Claims Tribunal. This tribunal was set up in order that complainants could seek redress without having to go to court, and 0shaving to pay high fees. Complaints that are dealt with by the Consumers’ Association, and that are not amicably solved, are also referred to this tribunal.
In order to assess the effectiveness of the Consumer Claims Tribunal, a study was recently conducted in respect of cases brought before this tribunal during 2004. Results showed that a total of 159 cases were heard during last year, some of which took more than one sitting before a decision was reached by the arbitrator.
Among these 159 cases, 32 cases were determined in favour of the consumer. Another 21 cases were awarded in favour of the trader, while the remaining 106 cases were decided as ‘in parte’, meaning that the consumer received only part of the compensation that was being sought.
Compensation claimed by consumers who took their case before the tribunal during 2004 amounted to the significant sum of Lm45,832.45,0. Out of this sum, the amount of compensation awarded in full to the consumers was Lm7,120.60, which amounts to an average of Lm220 per case.
The amount of Lm10,869 was won by the consumer ‘in parte’. This brings us to the conclusion that, through the protection that the Consumer Affairs Act provides for the consumer, total compensation given to consumers during 2004, amounted to Lm17,989.60,0.
The study also analysed the types of claims put forward. It resulted that the largest amount of complaints were those made against tour operators, when the service given fell short of what had been promised in the tour programme. A total of 46 consumers who filed this type of complaint, a total of 43 complaints were made in respect of defective products, and another 26 complaints were made in respect of poor service given by traders. Few complaints were made regarding the non-delivery of goods and services, delay in service- provision and damage suffered through faulty goods.
There was one complaint regarding refusal to honour a guarantee by a trader, while another two complaints regarded incorrect and inadequate information given in respect of a product. There were five cases in which consumers seeked compensation regarding damage caused by bad workmanship. Claims regarding unjust billing and unfair contract terms were also taken to the Consumer Claims Tribunal.
As can be seen from the above, the Consumer Claims Tribunal has dealt and is still dealing with a lot of small claims saving consumers from going to court, where they would incur many expenses as well as longer delays in order to settle disputes. The charges incurred to make a claim through this tribunal are minimal, the lowest being Lm4 and the highest Lm11.
It must be acknowledged that even here, consumers are expected to wait for quite some time before they are called to make their case heard. This is due to the ever-increasing amount of cases submitted.
The protection provided for consumers is being given great importance in every country. It is a fact that consumer confidence is the fuel for the trading machine. Some traders still do not abide by their obligations to give good service to consumers because they do not realise that they are shooting themselves in the foot by looking for short term gain.
Due to ongoing education on consumer rights and obligations which this office is giving through the media, traders have to keep giving good value for money, since consumers are being empowered by the tool of information, and they can choose between good and poor service.
Although traders who provide a poor service are liable to suffer a decrease in their business, on the evidence of the complaints that are received at this office, one can see that there are still some businesses that lag behind in the process of upgrading their service.
In order to become more competitive and improve the country’s overall competitive performance in the process, it is of great importance that these traders opt for change – a change towards a more positive attitude towards the consumer, a change that is achieved through training, and more importantly through the realisation that given the choice, consumers will always opt for doing business with the trader that treats them with the greater respect and provides them with their money’s worth.
Article provided by the Information and Client
Affairs Directorate
Consumer and
Competition Division