Significant year for consumer rights

On March 15, 1962, the President of the United States, John F. Kennedy, made a famous declaration about consumer rights. In his message to US Congress, President Kennedy underscored the right to safety, the right to be informed, the right to choose and the right to be heard, as the four most basic of consumer rights. He also argued that consumers, by definition, include us all. They are the largest economic group, affecting and affected by almost every public and private economic decision. “Yet, they are the only important group... whose views are often not heard,” President Kennedy had said.

His speech represents a watershed in consumer affairs. The consumerist movement, which had been fighting to push for increased rights and legal protection against malicious business practices and which had been gaining ground in the post-war period, had found a new champion in the political class and on the world stage.

Later, Consumers International (CI) added another four principles to Mr Kennedy’s Consumer Bill of Rights: the right to satisfaction of basic needs, the right of redress, the right to education and the right to a healthy environment.

World Consumer Rights Day was first observed on March 15, 1983. Two years later, on April 9, 1985, the United Nations General Assembly adopted the UN guidelines for consumer protection and recognised March 15 as World Consumer Rights Day.

This year’s commemoration is highly significant for the Maltese consumer. Parliament is in the process of enacting new legislation that will shortly set up the Malta Competition and Consumer Affairs Authority (MCCAA). This new authority will effectively mean the setting up of a one-stop shop for all matters related to consumer affairs, something consumers and their representatives have been demanding for so long.

As things stand in this country, consumer affairs fall within the remit of two separate and distinct entities: the Consumer and Competition Department (CCD) and the Malta Standards Authority (MSA). CCD has been responsible for the dissemination of information regarding consumer rights and education and post-market issues. MSA is responsible for both pre-market and on-market issues through its Regulatory Affairs Directorate, which is responsible to advise economic operators that consumer products must meet the relevant regulations before they leave the warehouse or factory shop, and through the Market Surveillance Directorate, which is responsible to ensure that only safe products are available at the point of sale.

Through this new piece of legislation being debated by Parliament at committee stage, CCD and MSA will be brought together within the same authority. With the inclusion of the Malta National Laboratory, the newly set up MCCAA will have an important asset for consumer protection as it will be able to test doubtful products in real time. The introduction of legal metrology and packaging control will further enhance consumer protection because these will ensure the consumer will be getting his money’s worth whenever measurement is the basis for payment.

Having said that, the primary aim of the new authority will be the achievement of well-functioning markets. It will have the onus of strengthening trust between consumers and traders, which is key to attaining the primary objective – acquiring the natural balance between the interests of traders and consumers. Through the setting up of this new authority, the government will have fulfilled its electoral promise and for the first time the Maltese consumer will be having an effective authority bent on protecting his rights.

The last 12 months have been some of the most exciting in consumer affairs in Malta. Since last summer we have managed to ensure reductions in the prices of 129 medicines. Amendments to regulations governing the Consumer Claims Tribunal, introduced lately, aim to maximse its operational efficiency in order to enable it to better achieve its aim of providing effective, quick and inexpensive redress to consumers.

Consumer credit regulations were introduced last October to guarantee a high level of protection to consumers when borrowing money from banks and commercial entities. These gave consumers new rights when borrowing money, such as the right to withdraw from a consumer credit contract without incurring fines and the right to redeem debt before the agreed date in a credit agreement. Work is now underway on the issuing of home loan regulations so that consumers will have a higher degree of protection when acquiring a mortgage in order to purchase property.

It is within this whole scenario of fast-moving developments in consumer affairs and initiatives meant to improve consumer protection that we, the Maltese consumers, are commemorating the day when our rights were underscored for the first time by one of the most trusted world-leaders of all time.

Dr Said is Parliamentary Secretary for Consumers, Fair Competition, Local Councils and Public Dialogue.