Many of the products we purchase are marketed and sold with a commercial guarantee, which is usually valid for a specific number of years.

Such a guarantee is mostly offered for free. However, what a commercial guarantee covers can vary significantly, depending on the product or trader. Some guarantees simply offer repair if something is wrong with the product, while other guarantees offer replacement of the defective product or even a refund of the original price paid.

Any remedies offered with a commercial guarantee should never try to diminish or affect our statutory rights. In fact, with every commercial guarantee given to consumers, it should be clearly stated that our legal consumer rights are not affected by the guarantee.

Consumer law gives us the right to ask for a remedy when the goods we purchase are either not as described by the trader, are unfit for their purpose, or for the purpose we bought them for and which we made known to the trader at the time of conclusion of the contract.

The remedies we are legally entitled to are to either have the goods repaired or replaced, or to a part or full refund. However, the law also stipulates that we should first require repair or replacement before claiming our money back.

These are our legal consumer rights, and anything a commercial guarantee offers is over and above these rights. When a commercial guarantee is given for a period of time which is under two years, these legal rights still apply even after the guarantee period expires.

A commercial guarantee is given voluntarily by traders. However, despite its voluntary nature, the Consumer Affairs Act stipulates that when a commercial guarantee is given, it should be given in writing and should include specific information.

It should, first of all, be written in at least one of the official languages of Malta, i.e. either Maltese or English. Such a guarantee should clearly state who the guarantor is and also provide the latter’s address.

The length of the guarantee is another mandatory piece of information. In this regard, consumer law states that different periods may be stipulated for different components of any goods.

Commercial guarantees must also clearly specify how a consumer is to proceed to make a claim and to obtain execution of the commercial guarantee. If the retailer who gives the commercial guarantee is not responsible for its execution, he should clearly state this in the guarantee and also provide the details of the actual guarantor. If this kind of information is not provided, then it is the retailer who is responsible for the commercial guarantee and at his own expense.

A commercial guarantee should also stipulate whether or not it may be transferred to others. However, if such information is omitted in the guarantee documents, it may also be availed of by any subsequent owners.

As to the defects covered by the guarantee, if there is anything the guarantor does not want to cover, this should be specified in the guarantee. Otherwise it would be assumed that the commercial guarantee covers any defects that may result during its duration. The remedies the guarantee provides should also be clearly specified.

It is in our best interest to carefully read the guarantee terms and conditions, not only to know what is and what is not covered and for how long, but also to be aware of any conditions attached to it. These conditions may vary significantly from one guarantee to another and if they are not observed, the commercial guarantee could be invalidated.

Reading these conditions may also make us aware of any costs we may incur to execute the commercial guarantee. However, if such fees are not specifically mentioned in the guarantee, the guarantor cannot ask for any charges.

Furthermore, whether or not stipulated in the guarantee, while goods are being repaired or replaced under their commercial guarantee, the duration of the guarantee should be automatically extended for a period of time equal to the time during which the guarantor had the goods or part of them in his possession.

Even though commercial guarantees are given out voluntarily, this does not mean that traders have the right to impose any condition they deem fit to execute. In fact, consumer law specifically states that a commercial guarantee must not directly or indirectly exclude or limit the rights of a consumer under the Consumer Affairs Act or any other law. If this happens, the unfair term or condition is considered null and ineffective.

In conclusion, regardless of the type of commercial guarantee we are given when buying a product, this should never seek to replace our legal rights. Hence, should a problem crop up and is not covered by the commercial guarantee, before paying for any repair or replacement, it is advisable to first double check what our legal rights are.

Ms Vella is senior information officer, Consumer and Competition Department.