Trading practices are selling methods traders use to promote products and services they have for sale, therefore trying to convince prospective customers to buy.

These practices are regulated by Section VII of the Consumer Affairs Act. The legal provisions clearly explain what unfair commercial practices are and ensure sellers provide consumers with all the information they need to make free and well-informed buying decisions.

There are two types of unfair commercial practices: misleading and aggressive. A misleading trade practice is an action a trader engages in to deceive consumers into making a buying decision they would not have made if they were provided with all the information.

Consumers can be misled through false information or missing information. In fact, leaving out important information is considered misleading. Traders would also be committing an unfair trading practice if the information they provide is unclear, hard to understand and/or ambiguous. Hence, any information provided to consumers has to be clear, intelligible and unambiguous.

The law names specific practices that are downright unfair and are hence automatically banned. This blacklist mentions specifically a number of misleading commercial practices, such as:

• false claims that a particular product or service is free when it is not;

• prize promotions when there is either no prize or consumers must make a payment to claim it;

• false claims that a trader is about to cease trading or move premises;

• false claims that products can cure illnesses or disabilities; and

• giving the impression that aftersales service is available in another EU member state when it is not.

Unfair trading practices also include aggressive practices. If a seller puts consumers through pressure to convince them to buy something, legally this is considered an aggressive trading practice.

Aggressive commercial practices also limit the consumer’s freedom of choice through harassment, coercion, including physical force, or undue influence. The law lists a number of situations that fall under aggressive commercial practices, which include:

• situations whereby the trader creates the impression that the consumer cannot leave the premises until a contract is formed and signed;

• the trader refuses to leave a consumer’s home after being requested to do so;

• explicitly claiming to the consumer that if the purchase is not concluded, the trader’s job is in jeopardy;

• taking a consumer to a remote destination with no apparent return transport unless the consumer signs the contract; and

• adverts directly aimed at children to buy products or persuade adults to buy for them.

Consumer law prohibits all commercial practices that are misleading or aggressive.

Such unfair practices are banned in any business-to-consumer transaction, irrespective of the product/service or the circumstance of the transaction, be it face to face, via telephone, internet or mail.

Should consumers encounter any misleading or unfair trading practice, they may take action and report traders to the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority.

odette.vella@mccaa.org.mt

Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.

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