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The recently published Consumer Conditions Scoreboard revealed that fewer consumers in the EU were encountering unfair commercial practices. In fact, only 33 per cent (nearly 10 per cent less than the previous scoreboard) of consumers interviewed said they have felt pressured by persistent sales calls or messages urging them to buy something or sign a contract.
The same survey revealed that one in five consumers came across misleading advertising which stated that a product was available for a limited time only but later realised that this was not the case. While 18 per cent of respondents encountered false free offers, 16 per cent of consumers say they were informed they had won a lottery they had not entered, but were asked to pay to collect the prize.
A trading practice is legally considered unfair if it is likely to impair the consumer’s ability to make an informed choice or leads the consumer to a buying decision that otherwise they would not have made. Unfair trading practices are usually either misleading or aggressive.
Misleading commercial practices are normally the result of false or omission of important information when the trader promotes products or services.
A trading practice is considered unfair when it impairs the consumers’ ability to make an informed buying decision
The law names specific practices that are downright misleading and are hence automatically banned. These include: fake free offers; prize promotions when there is either no prize or consumers must make a payment to claim one; false claims that products can cure illnesses or disabilities; fake limited offers; giving the impression that aftersales service is available in another EU Member State when it is not; and advertorials that fail to make it clear that a trader has paid for media promotions.
On the other hand, aggressive trading practices occur when sellers put consumers through a lot of pressure to convince them to buy something. In fact, this is the most commonly reported unfair practice across the EU. Usually aggressive commercial practices limit consumers’ freedom of choice through harassment, coercion, including physical force, or undue influence. Examples of aggressive practices include situations where:
• the trader creates the impression that the consumer cannot leave the premises until the sales contract is signed;
• the trader refuses to leave a consumer’s home after being requested to do so;
• taking a consumer to a remote destination with no apparent return transport; and
• advertisements directly aimed at getting children to buy products or persuade adults to buy for them.
Both misleading and aggressive commercial practices are prohibited in any business-to-consumer transaction, irrespective of the product or service, or the circumstance of the transaction, be it face to face, via telephone, internet or mail. Unfair trading practices may be reported to the Office for Consumer Affairs within the MCCAA by sending an e-mail on info@mccaa.org.mt or by calling Freephone 8007 4400.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
odette.vella@mccaa.org.mt