To trade fairly
It is important for our business community to familiarise itself with the rights and obligations arising from the adoption of the European Unfair Commercial Practices Act last December. It is equally critical that consumers too are fully conversant...
It is important for our business community to familiarise itself with the rights and obligations arising from the adoption of the European Unfair Commercial Practices Act last December.
It is equally critical that consumers too are fully conversant with this directive and with their rights in general. We want a fully informed consumer. The Malta Chamber of Commerce and Enterprise advocates this not just to be politically correct but because we feel this is good for business. An informed consumer is a reassured consumer. A reassured consumer is a happy consumer and a happy consumer is good for business.
The chamber is also keen to ensure that Maltese traders engage in ethical behaviour and that any abuses are immediately reported and stamped out. This obviously requires a well-informed consumer as well as a strong enforcement function.
The chamber agrees with the focus of this new legislation, which is that of tackling internal market barriers caused by divergent national provisions in the various countries and to bolster consumer confidence. As we all well know, EU membership has brought and continues to bring with it considerable benefits to the Maltese business community. This to us has been clear from day one. In our mind the greatest benefit of all has always been the possibility to operate freely and without hindrance in the EU Single Market. Of course there are many other benefits such as the EU structural funds and the many EU programmes in which Maltese SMEs can freely participate. But for us, being able to operate in the EU Single Market outweighs, by far, all other benefits. As members of the EU, our home market is no longer Malta. It is now firmly Europe.
The Unfair Commercial Practices Directive is clearly aimed at strengthening the confidence of European consumers in cross-border transactions. The plethora of different legislation governing consumer rights across the whole of the EU has no doubt created difficulties and thus has been hindering us from taking full advantage of the internal market. This directive is certainly an important step in the right direction in terms of clarifying and simplifying consumer rights when it comes to cross-border trade. Logically this should now lead to more trade and more business.
This directive also strengthens the internal market by ensuring that legitimate businesses are able to market across-border within the EU without having to change their business strategies or incur undue costs due to differing consumer protection regimes.
While this directive is clearly aimed at business-to-consumer transactions, it is also relevant to point out that some see this directive as also providing businesses with protection from what may be termed as unfair practices against them - for example protection from look-alike products.
Very importantly, this directive also caters for online business, which is a method of business which continues to grow year after year. Indeed for an island like Malta, the importance of e-commerce cannot be emphasised enough. In this regard it is interesting to note that 95 per cent of SMEs in Malta have access to the internet. This is slightly above the 94 per cent EU average.
While being in favour and supportive of this legislation, the chamber is also keen to see it reasonably and effectively implemented on the market. We strongly believe in the proper enforcement of and adherence to all legislation but we also advocate that a practical implementation of such legislation is crucial. While the black list contained in the Unfair Commercial Practices Directive clearly lists those practices which are unacceptable, there is a certain amount of subjectivity as to how other provisions of the law may be implemented. We therefore advocate a practical rather than a textbook approach. Clearly this requires an authority that has the necessary resources and structures in place to effectively and efficiently enforce the provisions of this directive.
In Malta, it is the Consumer and Competition Division that is responsible for implementation and enforcement of this legislation. The chamber has repeatedly urged government to provide this office with the necessary resources. This office has a very crucial role to play in the functioning of our domestic market and it is unacceptable that such an important office continues to be undermanned, putting tremendous pressures on the limited resources available while at the same time hindering the proper functioning of the market. It is a situation that needs to be addressed. Indeed during our last meeting with the Prime Minister, our view on this issue was made very clear. We want an efficient and effective implementation of all legislation, which is applied equally and equitably to all businesses.
Continuing on very much the same theme, the chamber has and continues to advocate that a business-like approach is adopted by the authorities when it comes to legislative implementation. All key legislation that is to be amended significantly or indeed introduced must always be subjected to a business impact assessment even when this has already taken place on an EU level. We are advocating this not to create additional bureaucracy but to ensure that the full implications of what is to be introduced are well and truly understood by both the policymaker as well as by the business community, represented by their respective bodies. This process would increase transparency, allow us to identify possible problem areas at an early stage and prepare our members better.
Admittedly, the chamber would have appreciated a somewhat more positive title to this legislation as it gives a somewhat negative tone that a priori, businesses commit unfair commercial practices. On the other hand, we are realistic enough to know that rogue traders do exist. Therefore it is in the interest of all bona fide traders for this law to function as intended and to serve as a deterrent to dishonest operators who unfortunately tarnish the reputation of all traders and upset business through poor consumer confidence.
Unfortunately, it is always bad practices which generate most publicity not only in newspaper consumer columns but also through word of mouth. But such practices are not the norm. They are the exception. There are thousands of transactions occurring every day which are according to the law, and more importantly, to the utmost satisfaction of both the consumer and the trader.
To conclude, I think it is fair to say that the intentions of this directive are positive and given its drive to improve the functioning of the internal market it cannot but have the chamber's full support.
• Mr Mallia is senior vice-president of the Malta Chamber of Commerce and Enterprise.
It is equally critical that consumers too are fully conversant with this directive and with their rights in general. We want a fully informed consumer. The Malta Chamber of Commerce and Enterprise advocates this not just to be politically correct but because we feel this is good for business. An informed consumer is a reassured consumer. A reassured consumer is a happy consumer and a happy consumer is good for business.
The chamber is also keen to ensure that Maltese traders engage in ethical behaviour and that any abuses are immediately reported and stamped out. This obviously requires a well-informed consumer as well as a strong enforcement function.
The chamber agrees with the focus of this new legislation, which is that of tackling internal market barriers caused by divergent national provisions in the various countries and to bolster consumer confidence. As we all well know, EU membership has brought and continues to bring with it considerable benefits to the Maltese business community. This to us has been clear from day one. In our mind the greatest benefit of all has always been the possibility to operate freely and without hindrance in the EU Single Market. Of course there are many other benefits such as the EU structural funds and the many EU programmes in which Maltese SMEs can freely participate. But for us, being able to operate in the EU Single Market outweighs, by far, all other benefits. As members of the EU, our home market is no longer Malta. It is now firmly Europe.
The Unfair Commercial Practices Directive is clearly aimed at strengthening the confidence of European consumers in cross-border transactions. The plethora of different legislation governing consumer rights across the whole of the EU has no doubt created difficulties and thus has been hindering us from taking full advantage of the internal market. This directive is certainly an important step in the right direction in terms of clarifying and simplifying consumer rights when it comes to cross-border trade. Logically this should now lead to more trade and more business.
This directive also strengthens the internal market by ensuring that legitimate businesses are able to market across-border within the EU without having to change their business strategies or incur undue costs due to differing consumer protection regimes.
While this directive is clearly aimed at business-to-consumer transactions, it is also relevant to point out that some see this directive as also providing businesses with protection from what may be termed as unfair practices against them - for example protection from look-alike products.
Very importantly, this directive also caters for online business, which is a method of business which continues to grow year after year. Indeed for an island like Malta, the importance of e-commerce cannot be emphasised enough. In this regard it is interesting to note that 95 per cent of SMEs in Malta have access to the internet. This is slightly above the 94 per cent EU average.
While being in favour and supportive of this legislation, the chamber is also keen to see it reasonably and effectively implemented on the market. We strongly believe in the proper enforcement of and adherence to all legislation but we also advocate that a practical implementation of such legislation is crucial. While the black list contained in the Unfair Commercial Practices Directive clearly lists those practices which are unacceptable, there is a certain amount of subjectivity as to how other provisions of the law may be implemented. We therefore advocate a practical rather than a textbook approach. Clearly this requires an authority that has the necessary resources and structures in place to effectively and efficiently enforce the provisions of this directive.
In Malta, it is the Consumer and Competition Division that is responsible for implementation and enforcement of this legislation. The chamber has repeatedly urged government to provide this office with the necessary resources. This office has a very crucial role to play in the functioning of our domestic market and it is unacceptable that such an important office continues to be undermanned, putting tremendous pressures on the limited resources available while at the same time hindering the proper functioning of the market. It is a situation that needs to be addressed. Indeed during our last meeting with the Prime Minister, our view on this issue was made very clear. We want an efficient and effective implementation of all legislation, which is applied equally and equitably to all businesses.
Continuing on very much the same theme, the chamber has and continues to advocate that a business-like approach is adopted by the authorities when it comes to legislative implementation. All key legislation that is to be amended significantly or indeed introduced must always be subjected to a business impact assessment even when this has already taken place on an EU level. We are advocating this not to create additional bureaucracy but to ensure that the full implications of what is to be introduced are well and truly understood by both the policymaker as well as by the business community, represented by their respective bodies. This process would increase transparency, allow us to identify possible problem areas at an early stage and prepare our members better.
Admittedly, the chamber would have appreciated a somewhat more positive title to this legislation as it gives a somewhat negative tone that a priori, businesses commit unfair commercial practices. On the other hand, we are realistic enough to know that rogue traders do exist. Therefore it is in the interest of all bona fide traders for this law to function as intended and to serve as a deterrent to dishonest operators who unfortunately tarnish the reputation of all traders and upset business through poor consumer confidence.
Unfortunately, it is always bad practices which generate most publicity not only in newspaper consumer columns but also through word of mouth. But such practices are not the norm. They are the exception. There are thousands of transactions occurring every day which are according to the law, and more importantly, to the utmost satisfaction of both the consumer and the trader.
To conclude, I think it is fair to say that the intentions of this directive are positive and given its drive to improve the functioning of the internal market it cannot but have the chamber's full support.
• Mr Mallia is senior vice-president of the Malta Chamber of Commerce and Enterprise.