Problems with products or services purchased sometimes do happen. In such situations consumers are first encouraged to try and resolve the dispute directly with the trader or service provider. If this proves unsuccessful, then consumers may seek the help of the Office for Consumer Affairs within the Malta Competition and Consumer Affairs Authority. Should the conciliation process not lead to an agreement between consumer and trader, the consumer is offered the possibility to submit the claim before the Consumer Claims Tribunal.
Only consumers may take their disputes with traders to be heard before this tribunal. Furthermore, consumers may only make a claim for a remedy or compensation when their complaint concerns goods or services bought or hired from a trader and used for their own personal needs. The Consumer Claims Tribunal may also hear and decide with regards to any counter-claim by a trader if the consumer had made a claim against the same trader before the tribunal. Cases commenced before a court and which later, by agreement between the two parties, are referred to the Consumer Claims Tribunal, may also be heard.
A main advantage of this tribunal is its low fees, which do not discourage consumers from proceeding with their claims, especially when the amount of compensation claimed is low. The fee varies according to the value of the amount claimed. While the lowest fee a consumer may be asked to pay to lodge a claim with the tribunal is €9.20, the highest fee amounts to €25.50. The latter applies when the amount claimed is between €2,329.38 and €3,500.
Claims presented in front of the CCT cannot exceed €3,500 as compensation, or claimants must declare that they are abandoning the excess of €3,500 by signing a declaration when filling the claim form. When consumers’ claims exceed €3,500, they need to take their case to the Civil Courts.
Both parties should be well prepared for the hearing
In this tribunal consumers may also make a claim for moral damages caused by any pain, distress, anxiety and inconvenience suffered. The maximum amount awarded for moral damages is €500. On the other hand, if the arbiter considers that a claim presented before the tribunal is vexatious or frivolous, the defaulting party may be ordered to pay to the other party a penalty of not more than €120.
When a consumer submits a claim, the tribunal informs the trader about the claim made. The trader may then reply to the claim and/or make a counter claim. At this point, the two parties have the possibility to reach an amicable agreement but if this does not happen, the tribunal’s secretary will fix a date, time and place of hearing before an arbiter. During the hearing both parties are given the possibility to present their case under oath. It is therefore in their best interest to attend the hearing. When one is unable to attend, the tribunal’s secretary should be notified immediately so that the hearing is re-scheduled. Failure to do so without a valid reason may lead the arbiter to decide the case against the missing party.
The parties involved in the claim do not need to be represented by a lawyer. However, they may still opt to do so. If such assistance is hired, all related expenses must be paid by the person engaging legal assistance, and this regardless whether the claim is won or lost.
Both parties should be well prepared for the hearing. Any documentation and evidence related to the case should be brought to the sitting to help establish the facts concerning the dispute. Such documentation may include proof of purchase, letters, guarantees, bills, contracts, invoices and also photographs.
Witnesses could also be summoned during these sittings. In situations where a witness refuses to attend, if the tribunal deems that the witness’s evidence is important, it may issue a ‘summons to witness’, thus ordering the witness to attend.
The arbiter’s decision must be honoured just like a court judgment. The losing party has 20 days to appeal against the decision. In cases when the amount of the claim in dispute is less than €1,200, the appeal may be made on any matter regarding the jurisdiction of the tribunal and on any question related to prescription.
An appeal can also be made in cases where the arbiter has acted contrary to the rules of natural justice and seriously prejudiced the outcome of the case. When the claim exceeds €1,200, it is possible to appeal on all grounds.
The Office for Consumer Affairs follows up on the tribunal’s decisions and may issue a public warning statement against those traders who refuse to abide by these decisions. Further information about the Consumer Claims Tribunal can be obtained by calling the tribunal’s office on 2122 7070.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
odette.vella@mccaa.org.mt