There is no law that dictates to traders how much they can or should charge for any particular product or service provided. Traders are basically entitled to decide on the price.
In other words, it is not in breach of the law for sellers to charge more or less than their competitors. When we feel that the price is above our budget or we are not ready to pay so much for a particular product or service, we are free to stop buying and look elsewhere. Shopping around and comparing prices is our responsibility.
However, to be able to freely compare prices and make informed choices, prices must be clearly indicated. There are, in fact, specific rules about how retailers should display their prices. The Price Indication Regulations state that if a product is for sale, its price must be indicated.
More specifically, these regulations state that goods for sale should have the price either displayed on the product, or if there is more than one item of the same kind, size, type or brand, it is sufficient to show the price on just one of these items, or on the edge of a shelf. Moreover, the price displayed has to be the final price, without any 'hidden extras' and must be in euros.
Regarding products sold by weight or volume, the selling price must also show a unit price, which is the price the product would cost for a given quantity, like a kilo of cheese. Thus, if a product is sold by weight, volume or measure, the seller must also show the product's unit price in addition to displaying its actual selling price.
Should a retailer make a genuine mistake and the price is marked lower than what the item should cost, we do not have the right to buy the goods at the marked price. However, when such mistakes are drawn to the attention of the seller, they should be rectified immediately.
The Price Indication Regulations do not apply when goods are sold at an auction, when goods are provided in the course of a service and also when goods are supplied for the purpose of reselling. Works of art and antiques are also exempt.
In the case of services, the seller's legal obligations are different. Due to the nature of services, it is not always possible to display the price in advance. Therefore, there is no legal obligation on the service provider to display a price list.
However, providers must inform the consumer of the total cost of the service, including taxes, and how this was calculated, before they are engaged by the consumer. On the other hand, consumers should protect themselves from unpleasant surprises by requesting a quote of all costs involved before purchasing any kind of service.
Businesses, such as restaurants, pubs, cafeterias and wine bars, are required by law to display a list of prices that is visible from the street or at the entrance of the premises.
Such lists should be clearly legible and up-to-date. The aim of this is that we should be in a position to compare prices before we decide to enter. If, while shopping, we notice prices are not indicated as the law stipulates, we can assert our rights by reporting these traders to the Enforcement Directorate within the Consumer and Competition Division. Lack of price indication or misleading prices can be reported on Freephone 8007 4400.
Ms Vella is senior information officer, Consumer and Competition Division.
customer@timesofmalta.com, odette.vella@gov.mt