Traders are legally obliged to indicate the price of all products they display for sale. The indicated price must be on or near the products. Appropriate price indication ensures consumers can compare prices between different brands of the same products in a particular outlet and with other retail outlets.
More specifically, prices must be indicated unambiguously and must be clearly legible. These obligations apply both to products displayed inside the shop as well as to those in shop windows.
Furthermore, the price indicated must be the final price that will be charged at the cash point. Thus, it has to include the VAT and any other taxes or charges, as well as postage, package or delivery charges. This rule also applies to special offers and during sales. It would be considered misleading if the price indicated is incorrect.
Traders have a legal obligation to sell the goods and to provide services at the advertised prices, and according to law they cannot sell at a higher or different price and they cannot refuse to sell goods or provide services at the advertised price.
According to the price indication regulations, there is an exemption to indicate prices with regard to goods supplied for the purpose of re-selling; goods sold at an auction; goods provided in the course of a service; and also works of art and antiques.
Specific legal provisions establish that even with regard to services, traders have an obligation to ensure that in an invitation to purchase, namely in any offer and/or in any advert wherein such services are advertised, the price must always be indicated as it is considered necessary information for the consumer to reach an informed decision regarding whether or not to acquire such services.
Another legal obligation that traders have is to indicate two prices on goods that are sold by unit weight or volume. This also applies to pre-packed goods, including foodstuffs sold in pre-established or variable quantities. With regard to pre-packaged solid products preserved in a liquid medium, the price per unit should refer to the weight of the solid food without the liquid in which it is contained.
These obligations apply both to products inside the shop as well as those in shop windows
Unit pricing makes it easier for consumers to compare prices in different sizes and from different manufacturers, as they can compare the cost of one kilo or one litre of similar products.
By law, traders must display both the selling price and the unit price on or near the item. The unit price may be indicated in a smaller font than the actual selling price, but it must still be clearly legible.
As from March 1, 2013, retail outlets with an area of less than 200 square metres, and goods whose content is less than 50 grams or 50 millilitres have been exempted by the Director General (Consumer Affairs) from the obligation of displaying the unit price, in terms of regulation 6 (3) of the Consumer Affairs Act (Price Indication Regulations).
Traders are bound to ensure full compliance with provisions of the Consumer Affairs Act (Cap. 378 of the Laws of Malta) and with the specific provisions of the Consumer Affairs Act (Price Indication) Regulations (Subsidiary Legislation S.L. 378.09). They are also responsible for any infringements made by staff they employ.
If prices are incorrectly displayed, consumers may contact the Enforcement Directorate of the Office for Consumer Affairs so that the necessary legal and/or administrative proceedings actions may be taken.
Lack of observance of the Consumer Affairs Act will lead to the start of investigations and to the institution of administrative proceedings. Moreover violation of the Consumer Affairs Act (Price Indication) Regulations amounts to an offence, and if found guilty, traders will be fined. In case of a second or subsequent conviction, traders may have their licence or other authorisation or any trade licence suspended for a week.
odette.vella@mccaa.org.mt
Ms Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.