As consumers, the law protects us whenever we buy goods that are eventually found to be not in conformity with the contract of sale.
In such circumstances, the law entitles us to a free remedy, which may take the form of either repair or replacement, or to part or full refund of the money paid for the non-conforming product.
This legal protection applies to all kinds of goods we buy. The length of this protection is two years from date of delivery of the goods purchased.
Besides this legal protection, when we buy certain products we may also be given a commercial guarantee. Basically, this guarantee expresses the will of a person or company that assumes liability for certain defects.
A commercial guarantee offers solutions to possible problems that may result in the product purchased, and it should provide benefits over and above the legal rules governing the sale of consumer goods.
Commercial guarantees are given voluntarily by sellers and are legally binding under the conditions laid down in the guarantee document.
It is a myth that as consumer law grants a two-year legal protection, then commercial guarantees must also not be given for less than two years. The length of a guarantee is decided by the guarantor and may vary from a few months to years.
If, however, a commercial guarantee is given for a period of time that is less than two years, even after the guarantee expires, our legal consumer rights still apply.
Even though commercial guarantees are given voluntarily, the Consumer Affairs Act stipulates how these guarantees should be given. Guarantors are obliged to put their commercial guarantees in writing and their terms and conditions should be set out in simple language that can be easily understood.
Moreover, for goods sold in Malta the language used should be Maltese or English. The Consumer Affairs Act also specifies what information should be included in the commercial guarantee, such as:
• the name and address of the guarantor, who could be a different person – not the seller of the goods;
• the duration of the guarantee;
• a description of the goods and services covered under the guarantee. Unless otherwise specified, it is assumed that the commercial guarantee covers any defects that may result during the guarantee period;
• how consumers can make a claim under the guarantee;
• what remedies the commercial guarantee offers.
• whether or not the guarantee may be transferred to other customers. Unless otherwise stipulated, the commercial guarantee may also be availed of by subsequent owners.
Furthermore, unless plainly stipulated in the guarantee, the guarantor cannot request a fee or charge for transport of the goods under guarantee. The law also states that the guarantee is automatically extended by the period of time during which the guarantor had the goods, or part of them, in their possession while executing the guarantee.
As consumers, we also have specific responsibilities when given a commercial guarantee. We need to observe the conditions attached to it. If the guarantee stipulates that the product purchased must be serviced at specific intervals, and this is not done, and the product breaks down, then the free repair may not apply.
Commercial guarantees should provide added benefits to consumers. However, when this is not the case, these guarantees should never try to replace the legal rights the Consumer Affairs Act grants.
This is especially the case when the duration of the commercial guarantee is less than two years.
odette.vella@mccaa.org.mt
Ms Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.