Owning up to cartel will attract lower punishment

Businesses that admit to their involvement in cartels, through which they illegally set market prices, will benefit from a reduction in punishment under proposed amendments to the competition law.

The amendment will be among a series of planned changes to the competition and consumer laws that will safeguard the rights of consumers and ensure fair market prices.

The revised laws would then be applied to strengthen the work of the Malta Competition and Consumer Affairs Authority to be set up soon, said the Parliamentary Secretary for Consumer Affairs, Chris Said.

He was speaking during the launch of a Bill aimed at setting up the new authority that was approved by Cabinet last week. The Bill was presented in Parliament for a first reading on Monday.

Dr Said explained that the new authority would be formed through an amalgamation of the Malta Standards Authority, the Consumer and Competition Department and the National Laboratory.

The aim of the authority will be to strengthen competition and consumer policy, adopt the role of a national standards body, prepare and implement the national metrology study (that will ensure people are being given what they paid for from, for example, petrol stations) and to ensure the smooth transposition and adoption of technical regulations.

It will consist of a board of governors, made of a chairman and seven members, and four autonomous departments focused on competition policy, consumer affairs, technical regulation and standards and metrology.

The Consumer Affairs Council and the Consumers’ Tribunal will continue to operate as at present. However, the size of penalties which may be imposed for moral damages would be increased.

The Competition and Consumer Appeals Tribunal will replace the Consumer Appeals Board and the Fair Trading Commission.

The Bill can be viewed on www.opm.gov.mt/konsumatur. Suggestions can be sent to konsumatur.opm@gov.mt.