An EU consumer affairs expert explained new European Union rules on unfair commercial practices during a conference held yesterday at the Mediterranean Conference Centre in Valletta. Giuseppe Abbamonte is the head of a team of experts in consumer protection legislation within the European Commission.
The new legislation cracks down on misleading advertising and bans a series of the most aggressive or abusive selling practices, such as "pester power", advertising to children on the internet, bait advertising, pyramid schemes and false claims that products cure health problems. Existing rules on advertising are reinforced and new standards are set with respect to coercion, harassment and undue influence on consumers by sellers.
The four key elements of the new rules are:
• A far reaching general clause defining practices which are unfair and therefore prohibited.
• Detailed definitions of misleading practices and aggressive practices - the two main types of unfair practices.
• Provisions that aim at preventing exploitation of vulnerable consumers.
• An extensive black list of practices that are banned in all circumstances, including the "dirty dozen" of unfair schemes that are well known to cause consumer detriment.
The conference was organised by the European Commission as part of the ongoing information campaign in Malta on consumers' rights. It was attended by over 130 people from the business community including retailers, wholesalers, business executives, company managers, lawyers and other professionals involved in the marketing of products and/or services.
Mr Abbamonte stressed that all businesses, large and small, must become familiar with their obligations towards their clients under the new directive. He also raised the possible revision of EU legislation on business-to-consumer contracts.
The Unfair Commercial Practices EU Directive became part of Maltese law with the amendment to the Consumer Affairs Act that was adopted by Parliament on January 29. It has a direct impact on all businesses that are involved in the sale, promotion or marketing of goods and services to the consumer.