The Doorstep Contracts Act, which use to regulate contracts of sale concluded with door-to-door sellers, has recently been revoked and replaced by the Consumer Rights Regulations. Under the new legislation, doorstep contracts are now referred to as off-premises contracts, and these include all sales contracts initiated and/or concluded in a place which is not the trader’s business premises.

Traders who engage in off-premises sales are legally obliged to provide specific information to consumers before binding them with a sales contract. This information must be provided in at least one of the official languages of Malta, it must be given in writing, and must include the following:

• the main characteristics of the goods or services;

• the identity of the trader, such as his trading name;

• the trader’s geographical address and other contact details;

• the total price of the goods or services, inclusive of taxes, as well as, where applicable, all additional freight, delivery or postal charges, and any other compulsory costs;

• the arrangements for payment and delivery of the goods or performance of services;

• the duration of the contract and the conditions for terminating the contract; and

• a reminder of the existence of a legal guarantee of conformity for goods.

The withdrawal period starts from the moment the consumer takes possession of the goods, rather than at the conclusion of the contract

Before being bound by an off-premises contract, consumers should be informed about their right of withdrawal. Consumers have 14 days to change their mind and cancel the contract of sale. They do not need to give a reason.

This withdrawal period starts from the moment the consumer takes possession of the ordered goods, rather than at the time of conclusion of the contract, which was the case with regard to doorstep sales.

Regarding service contracts, the withdrawal period expires after 14 days from the conclusion of the contract.

If consumers are not properly informed about their cancellation rights, the return period is legally extended to a year. Once the information is provided to the consumer, the withdrawal period will expire 14 days after the day on which the consumer receives that information.

When consumers decide to cancel an off-premises contract, if the goods have been delivered to the consumer’s home when the contract of sale was concluded, the seller is legally obliged to collect back the goods at his own expense, if by their nature the goods cannot be returned by post.

The seller of the off-premises sales contract is also obliged to provide a withdrawal form which consumers can, but are not obliged to, use if they change their mind and wish to cancel the sale.

Consumers may also cancel a sale by making an unequivocal statement that they want to withdraw from the contract. The burden of proof of having withdrawn within the stipulated time-limit is on the consumer.

Once a sale is cancelled the trader is obliged to reimburse all payments received from the consumer, not later than 14 days from the day the trader is informed of the consumer’s decision to withdraw from the contract.

Upon concluding an off-premises contract, consumers should not be asked to pay anything before the goods ordered are delivered. Where the goods are delivered in parts, the trader can only request the payment that represents the price of the part delivered.

If the trader requires the payment of a deposit, this deposit must not exceed 10 per cent of the price of the goods ordered. Furthermore, this deposit shall not be paid before the cancellation period of 14 days expires.

odette.vella@mccaa.org.mt

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