With the advent of the Single Market and online shopping, European consumers are increasingly purchasing goods and services from traders based in other member states.
This certainly does not imply that things cannot go wrong with cross-border transactions, as happens in the case of local purchases, where both consumer and trader are based in the same country. Common grievances include non-delivery of products, faulty goods and unfair terms imposed by traders.
Obtaining redress through ordinary court procedures can be very costly and, in many cases, higher than the compensation sought, and thus it may not be a viable option. Consumers should be aware of the alternative remedies available to them when it comes to cross-border disputes. Such options include the Alternative Dispute Resolution (ADR) and the European Small Claims Procedure.
ADR schemes or bodies are out-of-court mechanisms that aim to solve disputes without going to court. The process involves the use of an independent, neutral third party, such as an arbitrator or a mediator to help the parties resolve their dispute.
Sometimes, the law, or the courts, will oblige you to resort to an ADR, but usually the parties themselves decide to go for this remedy. ADR bodies are still little known and used by consumers, but they can have great advantages.
ADRs come in different forms, distinguished by the way in which the third party becomes involved. The consumer, however, must be aware that ADR schemes differ between states.
Various schemes with various competences are found in the EU. The European Consumer Centre Network provides information and details about the different functioning ADR bodies that may help the consumer solve a complaint related to a cross-border transaction.
Obtaining redress through ordinary court procedures can be very costly and, in many cases, higher than the compensation sought
If necessary, the ECC may also help the consumer access the ADR body, which can then deal with the complaint.
The European Small Claims Procedure aims to simplify cross-border procedures in those cases where the claim is not more than €2,000. It is available throughout the EU, except Denmark.
It is a relatively quick, less formal and inexpensive procedure. Hiring a lawyer is not necessary. The procedure is a written one and is conducted mainly through correspondence, although the court may request an oral hearing.
To start this procedure, the consumer is to go to the Civil Registry, Small Claims Tribunal, at the law courts in Valletta and fill in a number of forms, which are also available online at http:// ec. europa.eu/justice_home/judicial atlascivil/html/index_en.htm .
Firstly, the consumer is to fill in Form A in the official language or one of the official languages of the court where it is to be filed – in Maltese in our case, together with another form in a language the other party may understand.
The consumer is to give the relevant details and grounds for his claim, attaching any documents and other evidence available. The trader’s name and address must also be included.
The consumer must also specify whether the claim is related to compensation in Malta or a provision of service. If the consumer has not included all the required details, the court may send another form, Form B, so that it may be properly completed.
After receiving the properly filled claim form, the court or tribunal shall fill in Part 1 of the standard answer Form C. A copy of the claim is sent to the trader within 14 days.
The latter is to submit his reply within 30 days of service of the claim. Documents are sent by post. Subsequently, the court issues a decision within 30 days and a copy of the judgment is sent to both parties by post.
This procedure may also be used in business-to-business disputes. It cannot be availed of, however, in disputes related to maintenance, cases against the State, industrial law, bankruptcy, social security or inheritance issues.
The European Small Claims Procedure only applies to cross-border disputes and the case is heard at the law courts (Small Claims Tribunal).
On the other hand, consumers resident in Malta who have a dispute against a trader who is also based in Malta may lodge a claim against the latter at the Consumer Claims Tribunal, Consumer House, 47A, South Street, Valletta.
A claim may be lodged against a trader after a mediation case has been opened at the Malta Competition and Consumer Affairs Authority and an amicable settlement has not been reached.
odette.vella@mccaa.org.mt
This informtion has been provided by the European Consumer Centre Malta Malta, which is part of the European Consumer Centres Network, financed by the European Commission and the EU member states and which consists of 30 centres in the 28 member states, Norway and Iceland.
The aim of the network is to increase consumer confidence in the internal market by providing information on cross-border transactions and helping consumers who have experienced problems with such purchases.
ECC Malta is hosted by the Malta Competition and Consumer Affairs Authority.
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.