Almost half of Maltese consumers purchase goods and services they need online. This drastic increase in online shopping is mainly due to the advantages the virtual market offers, especially to a small country like Malta.
For consumers, online shopping is convenient, less time-consuming, cheaper and offers a wide variety of products and services.
Consumers also opt to buy online because it is easier to compare prices and the internet offers easy access to product reviews by other consumers.
However, despite all these advantages, the virtual market is still not functioning to its full potential. There are factors hindering both consumers and traders from fully exploiting the benefits of the digital market.
Some of the main consumer concerns when buying online include fear of receiving wrong or damaged goods, difficulties in repairing or replacing faulty products and difficulties in returning unwanted products and getting reimbursement.
Consumers also worry that their personal data might be misused or that their payment card details may be stolen. Lack of knowledge as to how the law protects consumers may also discourage online shopping.
The 2015 Consumers’ Conditions Scoreboard showed lack of awareness regarding the right to a cooling-off period when purchasing online. In fact, only 56 per cent of European consumers knew of their right to cancel the sale when a product or service is purchased online from an EU seller. Maltese respondents scored 47 per cent in this regard.
Retailers may also be reluctant to take their business online as they may not always be aware of their legal obligations towards consumers living in another EU member state. The Consumer Rights Regulations that came into force all over the EU on June 13, 2014 laid down a common set of rules for businesses, making it easier for them to trade all over Europe.
These regulations stipulate that European consumers have 14 days to cancel a distance sales or an off-premises contract if they change their mind about the purchase made. European sellers are obliged to inform consumers about the cooling-off period and if not, the return period will be extended to a year.
Even purchases done through online auctions such as eBay can be cancelled during the cooling-off period, as long as the goods are bought from a professional seller and not from a private seller.
The Consumer Rights Regulations also protect consumers from being obliged to pay charges or other costs they were not properly informed about prior to placing the order.
Consumers must explicitly confirm that they understand they have to pay a price. Pre-ticked boxes for the purchase of additional services are also prohibited. Consumers should not be made to pay for services or products they have unknowingly purchased because they did not untick a box.
The sale of digital content is also regulated by these common European rules. The legislation stipulates that when digital content is offered for sale, the information provided to consumers must clearly indicate its compatibility with hardware and software. The right of cancellation also applies to purchases of digital content, such as music or video downloads, but is limited to the moment when the actual downloading process starts.
For more information on online shopping, consumers and traders are invited to attend a half-day conference, which is being organised by the Malta Competition and Consumer Affairs Authority in collaboration with the Ministry for Social Dialogue, Consumer Affairs and Civil Liberties, on April 1 at the Mediterrranean Conference Centre, Valletta.
The conference, themed ‘Xiri u Lmenti Onlajn – X’esperjenza Għandek?’ (‘Online buying and complaints – Your experiences’), will discuss the advantages and challenges both businesses and consumers face when they conclude contracts of sale online.
The conference will also discuss the role of social media as a tool used by consumers to complain about products and services that have resulted problematic.
The conference will be addressed by Helena Dalli, Minister for Social Dialogue, Consumer Affairs and Civil Liberties, and other distinguished speakers from the MCCAA, ECC Malta, MCA, Meusac, GRTU, Malta Enterprise, the Facebook group Are you being served? and the local consumers’ associations.
Attendance is free of charge. Registration can be done online at www.mccaa.org.mt.
odette.vella@mccaa.org.mt
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.