Disputes between consumers and traders are a reality. But what can the consumer do to seek redress following an issue with a trader? Are there any differences when seeking redress, following a cross-border transaction, and when dealing with a trader in your own country? This article will discuss the various options available to consumers for seeking redress in relation to both local and cross-border transactions.
European consumers are increasingly purchasing goods and services from traders based in other Member States both online and when visiting a particular country. This certainly does not imply that things cannot go wrong with cross-border transactions as they do in the case of local purchases, where both consumer and trader are based in the same country. Common grievances include non-delivery of products, faulty goods and unfair terms imposed by traders.
Obtaining redress through ordinary court procedures can be costly and in many cases, higher than the compensation sought. Therefore it may not be a viable option. Consumers should be aware of the alternative remedies available to them when it comes to cross-border disputes. Such options include the Alternative Dispute Resolution and the European Small Claims Procedure.
Alternative Dispute Resolution (ADR) schemes or bodies are out-of-court mechanisms aiming to solve disputes without going to court. The process involves the use of an independent, neutral third party, such as an arbitrator or a mediator, to help the parties reach a resolution.
ADR bodies are still little known and used by consumers but they can have great advantages. Alternative dispute resolution comes in different forms, distinguished by the way in which the third party gets involved. The consumer, however, must be aware that ADR schemes differ between the different European Member States. Different schemes are found within the EU which have different competences. The European Consumer Centre Network provides information and details about the different functioning ADR bodies that may help the consumer solve a complaint related with a cross-border transaction. If necessary, the ECC may also help the consumer access the ADR body that is able to deal with the particular complaint.
In order to facilitate the ADR process, the EU Commission has worked on the development of an Online Dispute Resolution (ODR) platform. This is a web-based platform specifically designed to help consumers settle their disputes for online purchases and those who would have bought goods online from a trader based in an EU country. This platform is free and available in 23 languages, serving as a single point of entry for consumers and traders seeking to settle disputes emerging from online transactions – irrespective of where the contract was concluded.
The platform links all national Alternative Dispute Resolution entities. Consumers will be able to send their complaint directly to the trader via the ODR platform and reach an agreement on the ADR entity that will handle the dispute.
There is a contact point in every Member State to provide support to users of the platform and to help with the submission of complaints via the platform.
Obtaining redress through ordinary court procedures can be costly
The European Consumer Centre Malta is the local contact point. Additionally, the ODR contact points will also assist by providing general information on consumer rights or other means of redress and explanations on specific procedures applied by the proposed ADR entities.
The European Small Claims Procedure is another procedure which aims at simplifying cross-border procedures in cases where the claim is not more than €2,000. Available throughout the EU, except Denmark, it is a relatively quick, less formal and inexpensive procedure.
Hiring a lawyer is not necessary. The procedure is a written one and will be conducted mainly through correspondence, although the court may request an oral hearing if it deems necessary.
To start this procedure, the consumer is to go to the Civil Registry, Small Claims Tribunal, at the law courts in Valletta and fill in a number of forms. Firstly, the consumer is to fill a form in the official language or one of the official languages of the court where it is to be filed – in our case it’s Maltese – together with another form in a language the other party may understand. Relevant details and the grounds for the claim need to be presented, attaching documents and other evidence available. A copy of the claim is sent to the trader within 14 days. The trader is to submit a reply within 30 days of service of the claim. Documents are sent by post. Subsequently, the court issues a decision within 30 days and a copy of the judgment is sent to both parties by post.
On the other hand, consumers living in Malta who have a dispute against a local trader, based in Malta, may lodge a claim against the latter at the Consumer Claims Tribunal, Consumer House, 47A South Street, Valletta.
A claim may be lodged against a trader after a mediation case has been opened at the Malta Competition and Consumer Affairs Authority and an amicable settlement has not been reached. The tribunal may hear cases if the value of the claim does not exceed the sum of €3,494.06. A claim before the tribunal can be carried out by filing a ‘notice of claim’ form and submitting it with the tribunal’s secretary upon payment of a small fee which varies depending on the value of the claim.
After presenting the claim, the other party will be notified and will have the opportunity to file a reply. If the claim is disputed, the secretary will appoint a date for the hearing to take place before an arbiter, who will give a decision after hearing all the parties involved. The tribunal can also order the appointment of experts to a case.
This topic of consumer redress will be further discussed in a half-day conference organised by the European Consumer Centre Malta, in collaboration with the Malta Competition and Consumer Affairs Authority.
The conference aims to offer customers insight into the various means of redress available to them both when buying locally as well when shopping cross border.
A number of stakeholders coming from various organisations within the area of consumer protection will discuss how the consumer can be assisted when dealing with an issue with a trader.
odette.vella@mccaa.org.mt
This informtion has been provided by the European Consumer Centre Malta. ECC Malta is part of the European Consumer Centres Network. The aim of the network is to increase consumer confidence in the internal market by providing information on cross-border transactions and assisting consumers who have experienced problems with such purchases.
Odette Vella is director, Information, Education and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.