When consumers encounter problems with a product or service purchased from a professional seller, legally they have the right to claim a free remedy from the trader.
A remedy is often granted as soon as consumers approach the seller about the problems encountered as long as the consumers’ complaint is justified and the remedy claimed reasonable. However, there are occasions when discussing the problem with the seller does not lead to a solution.
In these cases, consumers may require assistance. The Office for Consumer Affairs within the MCCAA carries out conciliation between consumers and traders with the aim of reaching an amicable agreement. If, after this intervention, consumers still do not obtain the desired redress, then they are offered the possibility to submit a claim before the Consumer Claims Tribunal.
This tribunal has the legal power to grant redress and compensation to consumers when their legal rights have been breached. The CCT hears claims from consumers about goods or services bought or hired from traders. Traders cannot take any disputes they have against consumers in front of this tribunal, but if a consumer opens a claim against them, they can make a counter claim.
The CCT provides a quick, effective and inexpensive means of redress for consumers. Its other advantages are low fees and that consumers do not need to be represented by a lawyer during the proceedings. The only fee to be paid is that for submitting the claim. This fee varies according to the amount claimed for compensation.
For instance, the lowest fee is €9.20 when the claim does not exceed €582.34. The maximum applicable fee is €25.50 when the amount claimed is between €2,329.38 and €3,500. The latter is the maximum amount this tribunal can grant as compensation. Consumer claims that exceed €3,500 need to be taken to the Civil Courts.
Another advantage of this tribunal is that it has the legal power to award moral damages. Up to €500 moral damages may be awarded for pain, distress, anxiety and inconvenience suffered. 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.
Once a consumer lodges a claim before the tribunal, the trader is notified. At this point, the trader has the possibility to make a counter claim or may try to settle the dispute. If even at this stage no agreement is reached, the tribunal’s secretary assigns the case to one of the tribunal’s arbiters and schedules a date for the hearing. The date and time of the sitting are then communicated to both parties in writing.
Who wins the case may enforce the tribunal’s decision just like a court judgment
At the hearing both the consumer and trader are given the possibility to explain the case under oath. Hence it is important that both parties attend the hearing and prepare themselves well so their case is presented in the best possible way. All evidence pertinent to the case should be presented at the hearing, such as letters, invoices, bills, contracts, guarantees, photographs and other relevant documentation.
Witnesses could also be summoned for these sittings. Should a witness refuse to attend, and the tribunal deems the evidence important, it may issue a ‘Summons to Witness’ ordering the witness to attend.
If the consumer or trader are unable to attend the hearing, it is crucial that they notify the tribunal’s secretary so the hearing is re-scheduled. Failure to attend without a valid reason may lead the arbiter to decide the case against the missing party.
Who wins the case may enforce the tribunal’s decision just like a court judgment.
However, the losing party should be given reasonable time to abide by the decision. If the amount of the claim is less than €1,200 an appeal can be made on matters related to the jurisdiction of the tribunal, on any question relating to prescription and on any action of the tribunal which is considered as contrary to the rules of natural justice.
When the claim exceeds €1,200 it is possible to appeal on all grounds. However, appeals can only be made within 20 days from the date of the decision of the tribunal.
Once the 20 days elapse and no appeal is filed, consumers may contact the trader requesting compensation as per the tribunal’s decision. If the trader refuses, or ignores the consumer’s request, the latter may engage a lawyer and resort to court if necessary. 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.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.
odette.vella@mccaa.org