Consumers who buy from dodgy traders or online sites are being warned that their rights cannot be enforced if the supplier cannot be tracked down.

“The client does not insist on a receipt, engaging someone based only on the recommendation of friends. And often all the client has is a mobile phone number, which can easily be changed. So if things go wrong or they are dissatisfied in any way, there is no way to get redress,” the director general of the Consumer Affairs Directorate, Joyce Borg, said.

Melanie Vella, a lawyer working with the directorate, said that there are vendors on sites like Maltapark or Facebook who have no company and no premises.

“It is incredibly difficult to track them down if things go wrong – even more so if the vendor is not in the EU,” Dr Vella warned.

The directorate receives complaints about various categories of products and services, with some clearly more prone to problems than others. The majority of claims submitted to the Consumer Claims Tribunal involve faulty white goods, most of which are still covered by warranty.

“We also get a number of cases involving mobile phones and tablets bought online, from sites which do not provide any information about the company itself or the mandatory right of withdrawal form,” Ms Borg said.

“People also buy used cars without checking them in person, and without a warranty. This makes it very hard to verify whether a subsequent problem is due to normal wear and tear for a used car or due to a latent defect.

The lack of any contract makes it very hard for us to pin down what was actually agreed

“Home repairs and maintenance services are also fraught – but the lack of any contract makes it very hard for us to pin down what was actually agreed. We do encourage people to have clear contracts and to take photos where applicable. This has proved to be very effective for laundries, for example.

“The problems with telecommunications companies are well known and there are complaints year in, year out. The marketing is too aggressive in some cases, and the customer care staff turnover is very high so they are often insufficiently trained. Although we have seen improvements, it is a problem,” Ms Borg admitted.

Of course, it is not only the trader who could be at fault. Numerous frivolous complaints are rejected. There are also many cases where the consumer’s complaint cannot be substantiated, for example, because no proof of purchase has been retained, or when the warranty period has expired.

The directorate forms part of the Malta Competition and Consumer Affairs Authority, headed by Marcel Pizzuto, who said that the resources were being strengthened.

“We now have our own lawyers and we filled the post of a director which had been vacant for a long time. We also have an economist on board, which is very important when it comes to competition issues.”

The biggest satisfaction for the directorate is that more and more consumer disputes are being sorted out satisfactorily without escalation, thanks to a proactive stance based on mediation.

Out of the 1,361 cases registered in 2014 and the backlog of 528 cases, 639 (33 per cent) were settled through mediation. A further 622 were dropped, but this includes over 300 consumers affected by the Fantasy Tours bankruptcy, which effectively blocked any hope of settlement.

The pending caseload has also been halved, and stood at just 280 at the beginning of this year.

Only 348 (18 per cent) went to the Consumer Claims Tribunal – although Ms Borg wants this number to fall even further, even though the majority of tribunal cases had satisfactory outcomes.

“Sometimes the problem is not that the trader does not give a hoot but that he is in financial trouble – and cannot supply the goods already paid for, for example.

“The approach is to find a solution, even if it means that the trader refunds the consumer in instalments...” Ms Borg said. “We believe that our mediation efforts are not only aimed at getting the consumer what they deserve but also explaining to the trader why the consumer’s rights matter and why a conciliatory attitude is so important in the long term.

“Far too often, a complaint escalates into an argument and once they are at loggerheads, then neither side wants to back down. But Dorothy Farrugia, my senior clerk, works with both sides and her calm and pragmatic approach has enabled us to solve many disputes – saving the trouble and expense of going to court.”

Once the Consumer Claims Tribunal makes its decision, if it is ignored, a warrant for seizure can be issued through a lawyer – and although the €600 cost is half the normal one for such warrants – it still involves considerable paperwork to research all the banks where the trader may have accounts.

Once there is a ruling on a case, the directorate follows up with the consumer to ensure that it has been respected by the trader. If not, then several attempts will be made to contact the trader. The last resort for the directorate is to issue a public warning statement (PWS), only done when the trader completely ignores the decisions of the tribunal or attempts to make contact by the directorate itself. Although the directorate was empowered to issue PWS some years ago, it has only actually been used since 2010.

We often encounter cases where goods are imported in all good faith by people who have simply not done their homework

However, there is no doubt that the PWS is effective with traders scrambling to settle when they realise that the directorate means business. The PWS – which is published on the directorate’s website, in the media and in the in-house Għazla magazine – also raises consumer awareness, bringing forward many complaints that would otherwise never have come to light.

The most notorious was that issued about Fantasy Tours, which exposed many loopholes in the system, Ms Borg said, which are now being closed. She stressed that preventing bad service – through awareness – is always preferable to dispute resolution.

The proactive approach does not only cover dispute resolution but also monitoring bad service as the directorate believes that many consumers simply do not come forward – even though it costs as little as €9 to file a claim, up to a maximum of €24.

“If we had the resources we would be able to monitor social media much more extensively. We do what we can and we have intervened on two occasions when safety was involved, referring the case to our CE mark section,” Dr Vella said.

“One of the problems with Facebook sites or radio shows is that the consumer complains vociferously but the complaint is not always justified. We have to listen to both sides before taking any decision. Things may seem clear cut at face value but when all the facts emerge – and we do scrutinise all the documentation involved on both sides – the picture could be quite different!” she warned.

“Having said that, Facebook sites like Are You Being Served are very important as they put a lot of pressure on traders to improve their customer care. We know of many companies that routinely monitor comments and who take action as soon as a problem is highlighted. It means that we do not need to get involved as often!”

At the end of the day, it is all about a relationship between customer and trader based on respect. The directorate wants traders to be proud of their customer-centric approach, and for customers to seek out traders with a positive and helpful attitude. This is why it is encouraging outlets to display a “Trust Mark this is only given for a year at a time to companies with a clean sheet and is only renewed after inspections and so on.

“I hope to be able to see them everywhere soon. The great majority of traders offer a very good service and even though anyone can encounter problems, the fact that these are resolved without the matter escalating is very important for consumers to appreciate,” Ms Borg said.

Mr Pizzuto also issued an appeal to the public to come forward with complaints: “We do not have an army of people to monitor all the shops, all the service-providers.

“Although we get reports on safety through a Europe-wide rapid alert system called Rapex, it is important that we find out about any problems as soon as possible.”

He also invited traders and entrepreneurs to seek advice from the authority.

“We often encounter cases where goods are imported in all good faith by people who have simply not done their homework. Importers get lured by bargain prices but they need to know the regulations with regards to all sorts of things such as labelling, standards and so on. As a result, the goods get stuck at the border.

“A simple phone call could save them a lot of wasted time and money.”