Consumers International celebrates World Consumer Rights Day on March 15, recalling a landmark speech by President John F. Kennedy to the American Congress listing four basic consumer rights, namely, the right to safety, the right to choose, the right to information and the right to be heard. These rights were, by time, extended to include another four rights including, notably, the right to redress.
More remains to be done to claim that consumers in Malta have access to effective redress- Paul Edgar Micallef
This year, CI has chosen the theme Consumer Justice Now. As World Consumer Rights Day draws closer, I would like to discuss how consumer redress as a means of ensuring consumer justice has progressed in Malta, focusing on certain procedures where there is room for improvement.
I use the word ‘progressed’ intentionally since substantial progress has been made over the years. However, much more remains to be done if we can truly claim that consumers in Malta do have access to effective consumer redress.
One major measure introduced way back in 1996 is the Consumer Claims Tribunal, an alternative form of dispute resolution for minor consumer versus trader disputes. The tribunal, which is intended to be an inexpensive, informal and quick form of redress, has proved to be very popular with consumers.
One shortcoming that has persistently impacted on the tribunal is compliance with its final decisions, which are enforceable just like any court decision. Regrettably, there remains a very small minority of traders who refuse to abide by final tribunal decisions.
In many instances, especially where the amounts involved are small, consumers are put off by the prospect of provisionally incurring more costs and, possibly, having to engage legal assistance to enforce such decisions.
There is no easy solution to this situation. Finding one must feature prominently on the agenda of the Government.
Solutions could include a more vigorous name-and-shame system for non-compliant traders by MCCAA, the national consumer watchdog, and empower impacted consumers to ask the tribunal to grant additional financial compensation payable by the defaulting trader tied to the period of delay in complying with the final decision.
Last year, the Collective Proceedings Act was approved and brought into force. This was a long overdue positive measure enabling consumers to file class actions where these relate to the same issues.
The application of this law is limited to issues of non-compliance with the Competition Act, the Consumer Affairs Act, the Product Safety Act and certain other consumer laws enforced by MCCAA.
The Collective Proceedings Act, however, does not apply to other consumer laws administered by other regulatory authorities, notably those relating to travel, financial services and utilities.
There is no apparent valid reason why the application of this law should not, in short order, be extended to such other sectors.
On the positive side, it is important to mention that the law in question does provide for a mechanism whereby the Prime Minister may add to the list of laws in relation to which collective proceedings can be made.
An important measure introduced some years ago by the European Union, which has barely been availed of, is the European Small Claims Procedure.
The aim of this procedure is, in part, to facilitate cross-border consumer redress where the value of the claim does not exceed €2,000.
One serious impediment to cross-border shopping by Maltese consumers, especially if the value of the good purchased is small, is the fear that if things go wrong there is no effective redress. The ESC procedure does provide a means of redress for such cases. Regrettably, not enough is being done to publicise the existence of this procedure and how it works.
Paul Edgar Micallef is a member of the Consumers’ Association.