Large appliances, second-hand cars most troublesome product markets

Television and public transport services, those plying the roads prior to the advent of the perhaps even more contentious Arriva service, are the two most likely services sectors to be failing Maltese consumers, according to the European Commission’s latest Consumer Markets Scoreboard published last month.

In terms of products, the annual study found the market for large household appliances, second-hand cars, and new cars to be the most problematic for Maltese consumers.

The Consumer Markets Scoreboard is the Commission’s main tool for identifying potentially underperforming sectors in the single market.

Ranking different markets, based on consumer views of their functioning on a comparable basis, provides an important indication of where markets are failing consumers. The individual characteristics of each market are fully addressed in the in-depth studies.

The majority of the scoreboard data is supplied by a survey of consumer markets, which provides comparable consumer opinions, across all EU countries, for 51 consumer markets, accounting for more than 60 per cent of the typical household budget.

The survey was conducted among consumers who had recent or ongoing purchasing experience of each market and, as such, ensured that it reflects relevant experience rather than uninformed opinion.

The categories of airline services, culture and entertainment, personal care and holiday accommodation were top of the list of consumer services in Malta.

In terms of products, the most consumer-friendly markets were those for newspapers, books and magazines, followed by leisure goods, non-prescription medicines and dairy products.

While across the European Union financial services, investments (including pensions and securities), mortgages and real estate services were found to be the markets most likely to be failing consumers, in Malta the areas of loans and credit, bank accounts, mortgages, real estate and mobile telephony performed over and above the EU average.

Household appliances, both large and small, are ranked lower in Malta than the EU average.

The scores for non-prescription medicines in Malta have improved over 2010 and this year and are above the EU average satisfaction levels.

Package holidays, however, had a reverse trend with a decreased score and a lower ranking in Malta as compared with the EU average.

Fixed telephone services ranked higher this year, and the ranking for entertainment good has also increased. On the other hand, markets for personal care products and alcoholic drinks ranked lower this year.

The ranking of electricity services have actually improved this year, while investment, Internet and vehicle rental services have decreased.

Referring to the Europe-wide results, Health and Consumer Commissioner John Dalli said: “The value of the Single Market for consumers is measured by what it delivers for them in terms of quality, greater choice, lower prices, transparency and satisfaction. Thanks to the Scoreboard, we can see where this does not seem to be happening.

“The process is about evidence-based policy to real problems that consumers face in the Single Market. Businesses that respond to consumer needs will be rewarded by consumer choice”.

Across the EU as a whole, financial services, investments (including pensions and securities), mortgages and real estate services are the markets which are the most likely to be failing consumers across the EU.

Among goods markets, second-hand cars and fuels have the poorest ratings. As in 2010, services markets continue to underperform, with financial services and network services all below average. Electricity supply and fuels have deteriorated most in comparison with 2010.

The Scoreboard’s main index ranks the consumer markets, in terms of consumer trust, satisfaction, the ease of comparing offers, problems and complaints. Consumer choice, the ease of switching service providers or tariffs, and price differences between countries are also monitored. The purpose is to identify markets that appear most at risk of malfunctioning for follow-up studies, which analyse problems in depth and identify policy responses.

Based on the latest findings, the European Commission is to launch a probe the consumer credit and fuel markets.