European Consumer Centre conference

LAST WEDNESDAY, in my capacity as director of the European Consumer Centre (ECC) I chaired our first conference at the Corinthia Palace Hotel, which, I am pleased to say, was well attended and a success. Indeed I must thank and compliment the hotel staff, particularly Terri Camilleri, who saw to all our needs in accordance with our expectations.

The following are highlights of the speeches delivered at the conference.

Censu Galea, Minister for Competitiveness. Communication and Consumer Affairs:

Consumer confidence is essential for any market to flourish, be it national or cross-border, off-line or on-line. In a market where consumers and suppliers may be separated by distance, language or tradition, instilling confidence in consumers is all the more important.

The EU is making determined efforts to develop a single market for consumers and business alike. This, however, cannot succeed unless consumers feel confident when shopping outside their country.

The ECCs were established to address any difficulties, which may arise between a consumer and a trader when these are located in different member states (i.e., cross-border).

I augur every success to the recently opened ECC and hope that local consumers will make use of this centre not only when they are facing some problem but also to seek information to enable them to shop with more confidence both locally and abroad, fully conscious of their rights and obligations. Knowing our rights and obligations will, most probably, reduce the amount of litigation that we have to face.

Marcel Pizzuto, Permanent Secretary, Ministry for Competitiveness and Communication:

In 1981 Malta already had its Consumer Protection Act. This Act did not give any substantial rights to consumers. However, with the advent of the Consumer Affairs Act of 1994, consumers started enjoying a marked increase in consumer protection.

Maltese consumers are now European consumers and many did not realise what this meant and how it would affect them. They regularly take holidays in Europe and we all know how shopping plays an important part in our vacation. The consumer was at a loss on how to deal with problems with a trader in another country. If Maltese consumers are not well informed about their rights, both when shopping at home and abroad by whatever means, consumer confidence will never increase.

We should aim at "having empowered consumers in a truly competitive market", thus instilling in them the necessary confidence to buy where it suits them most, whether at home or abroad. This will go a long way to ensure that the consumer benefits from the advantages which competition brings about.

Joseph Mallia, first director of Consumer Affairs:

In Malta a consumer having a dispute with a local trader can seek redress through the Consumer and Competition Division in St Venera. In case of a dispute between a local consumer and a trader in another European member state, redress can be sought through the ECC in Valletta.

Since Malta's ECC deals with consumers' cross-border complaints, both consumers and traders can reap the benefits of cross-border trading in the EU single market. This provides for a wider choice and cheaper goods and services. However, consumers' trust is essential and this will improve as long as we educate consumers and create awareness.

Purchasing goods in other EU member states through various avenues will increase considerably when Malta adopts the euro.

Monika Appman, director, European Consumer Centre, Düsseldorf:

Currently the European network maintains centres in 22 EU member states and in two EFTA countries (Iceland and Norway). ECCs are being set up in the other three EU member states - Hungary, Slovakia and Slovenia.

The internal market consists of 25 member states with over 450 million inhabitants.

There may be passenger controls, but there are no general border controls any more. Moreover, there are no general limits for imported goods and warranty rights are valid for all member states.

Dr David Fabri, lecturer on Consumer Law at the University of Malta, gave an impromptu presentation in which he provocatively analysed Maltese consumer policy before and after EU accession. He traced its brief and peculiar history from the 1991 White Paper to the several interesting home-grown initiatives and innovations introduced in the Consumer Affairs Act of 1994.

As EU accession approached, the process predictably shifted to the urgent transposition of the mandatory EU directives. He suggested that 1991-2002 may already constitute the landmark formative period in the development of national consumer policy and legislation, which has lately been showing signs of fatigue.

He asked whether Malta's only policy is currently a borrowed one, it being sadly ironic that EU membership may have spelt the end of what was developing into an interesting home-grown Maltese consumer law policy.