Consumers are becoming increasingly aware of their legal rights. Consequently, it is very important for traders to understand their legal obligations both during the sales transaction as well as when issues arise with their customers. Providing consumers with what they are legally entitled to is not only a sound business practice but also protects traders from negative publicity.

Traders’ legal responsibilities when selling goods to consumers are explicitly outlined in the Sale of Goods Regulations within the Consumer Affairs Act. Primarily, the goods sold must be fit for purpose and the quality of the goods must match the description provided by a sample or model that the seller would have shown the consumer before the sales contract was finalised. Additionally, goods must have the functionality, compatibility and interoperability as stated in the sales contract.

Goods sold to consumers must be fit for the purpose for which consumers require them, and which they made known to the trader before the sale was concluded. However, it is important that consumers have some form of evidence that the seller agreed to supply the required product.

Items sold to consumers should also meet the expected standards of quality, quantity and characteristics typical for goods of that kind, which consumers can reasonably expect, given the nature of the goods and any public statements made by the seller.

If goods turn out to be faulty within the first year, they are presumed to have been faulty at the time of sale unless sellers can prove otherwise

When goods sold include digital components, the seller is obliged to make sure that consumers are informed about and receive updates that are essential to maintain the goods in line with the sales contract. This responsibility lasts for a duration that consumers may reasonably expect, considering the type and purpose of the goods and their digital elements.

If the goods sold to consumers fail to meet these criteria, traders are legally required to provide consumers with a free remedy. The Consumer Affairs Act specifically outlines the type of remedies that must be provided.

Initially, goods that do not conform or are defective should either be repaired or replaced. If neither of these solutions are feasible, or if opted for would cause significant inconvenience to consumers, then the latter have the legal right to claim a part or full refund.

When consumers opt for a price reduction, the amount refunded should correspond to the diminished value of the goods resulting from the defect or non-conformity. As for terminating the sales contract, this remedy cannot be opted for if the lack of conformity is minor or insignificant.

Consumers have two years from the day they take possession of the goods purchased to claim these remedies. However, upon noticing a problem with the goods, consumers have the legal responsibility to inform the trader in writing within two months of discovering the non-conformity.

The two-year time limit is suspended for the duration that the seller and consumer take to resolve the dispute and until a suitable remedy is provided to the consumer.

Sellers should note that if goods turn out to be faulty within the first year, they are presumed to have been faulty at the time of sale unless they can prove otherwise. This presumption may, however, not apply if it is inconsistent with the nature of the goods or the nature of the defect the product has. If sellers suspect that the fault is due to misuse or an accident, it is their responsibility to provide proof of this.

Sellers are not legally required to provide a remedy when consumers change their mind or make incorrect purchase choices. In these situations, sellers can choose to implement their own voluntary return policies, such as allowing consumers to exchange the unwanted product or issue a credit note. It is important that consumers are clearly informed about any applicable return policies, particularly concerning the time limits for making exchanges.

Sellers are also not liable for issues arising from incorrect installation if the latter is not part of the sales contract. Furthermore, in the case of goods with digital components, sellers are not responsible for any non-conformity if such non-conformity is caused by the consumer’s failure to install the updates supplied by the seller.

However, it is crucial that the seller adequately informs the consumer about the availability of these updates and the potential consequences of not installing them.

By understanding and fulfilling these legal obligations, sellers can foster trust among consumers and minimise complaints.

If sellers have any uncertainties regarding their responsibilities, they are encouraged to reach out to the Office for Consumer Affairs at the MCCAA for further information and guidance.

 

Odette Vella is director, Information and Research Directorate, MCCAA.

 

www.mccaa.org.mt

odette.vella@mccaa.org.mt