New Authority to spearhead consumer and competition policies
Legislation on class actions being prepared
A Bill for the setting up of a Malta Competition and Consumer Affairs Authority was launched by Parliamentary Secretary Chris Said this afternoon.
He said that its purpose was to strengthen trust between consumers and traders and ensure that markets functioned better.
The new Authority will be formed through an amalgamation of the of the Malta Standards Authority, the Consumer and Competition Department and the National Laboratory. It will be using the resources currently employed in those institutions and there will be no increase in recurrent expenditure.
The Authority will have four autonomous departments focused on competition policy, consumer affairs, technical regulation and Standards and Metrology.
All would be able to take decisions independently of the Board of the Authority and the other departments..
Dr Said insisted that Maltese consumers had a right to be better informed of their consumer rights. They also had a right to choose and to redress when there was abuse.
He said that the Competition Office will guard against practices which restricted competition, market concentrations and abuse of dominant positions.
The Consumer Affairs Office will focus on mediation between consumers and businesses, price transparency, consumer information and good business practices.
The Technical Regulations Division will work on technical harmonisation, free movement of products, market surveillance and product safety while the Institute for Standards and Metrology will set standards and issue certifications. It would also operate the National Laboratory.
The Parliamentary Secretary said the Consumer Affairs Council and the Consumers' Tribunal would continue to operate as at present. However the amount of penalties which may be imposed for moral damages would be increased to €500 from the current €233.
The Competition and Consumer Appeals Tribunal will replace the Consumer Appeals Board and the Fair Trading Commission.
There will also be changes to procedures followed in proceedings under the Competition Act.
Dr Said said that businesses which were involved in cartels would be able to benefit from a reduction of penalties if they admitted their involvement.
He also announced that the government has started drafting legislation to make it possible for class actions to be instituted in Malta.
The bill is available as www.opm.gov.mt/konsumatur.
Suggestions may be sent to konsumatur.opm@gov.mt