Another way of protecting your rights without going to court
Consumers can use the alternative dispute resolution system to resolve complex issues with traders in a quicker, less expensive way
Occasionally, consumers face issues with the goods or services they purchase. In many cases, these problems are addressed effectively through direct communication with the seller. However, not all disputes are easily resolved. Some may involve complex disagreements, making it difficult for consumers to reach an amicable agreement with the trader on their own. In such instances, consumers require assistance to assert their rights.
In such situations, consumers can seek help from the Office for Consumer Affairs, which provides two primary avenues for redress.
The first is a conciliation process, which is initiated once a consumer submits a formal complaint. During conciliation, a complaints officer from the office communicates with the trader on the consumer’s behalf, aiming to facilitate an amicable and mutually acceptable resolution. However, if conciliation efforts fail, consumers may escalate the matter by bringing their case before the Consumer Claims Tribunal.
The second type of redress available to consumers is alternative dispute resolution (ADR). This is an out-of-court mechanism designed to help consumers and traders resolve their disputes with the assistance of an independent and impartial third party.
This neutral mediator helps the two parties communicate and work toward a mutually agreeable solution without the need for formal legal proceedings. Compared to traditional court procedures, ADR processes are generally quicker, less formal, and less expensive.
Furthermore, ADR allows the conflicting parties the possibility to shape the terms of their settlement through open dialogue.
ADR allows the conflicting parties the possibility to shape the terms of their settlement through open dialogue
This dispute resolution mechanism is available to all consumers within the EU, as each member state has established and registered ADR entities specifically tasked with assisting consumers in resolving disputes with traders out of court. These entities ensure that consumers across the EU have access to fair, impartial, and efficient means of redress, regardless of whether the dispute is domestic or cross-border in nature.
The Complaint and Conciliation Directorate within the Office for Consumer Affairs serves as Malta’s designated residual ADR entity.
Its establishment ensures that Maltese consumers benefit from comprehensive ADR coverage, providing them with access to out-of-court dispute resolution regardless of the nature of the purchase.
This guarantees that no consumer is left without a means of redress simply because a specific sectoral ADR body is unavailable.
For an ADR procedure to start, both the consumer and the trader must mutually agree to resolve their dispute via this method. Participation in ADR is voluntary, and either party retains the right to withdraw from the process at any stage and for any reason.
Should the parties succeed in reaching an amicable agreement, the terms of the settlement are formally documented in a private writing. If the dispute remains unresolved, the parties can still proceed to seek legal redress in front of the competent court or tribunal, including the Consumer Claims Tribunal.
The ADR process is free of charge and typically takes 90 days, unless an agreement for extension is reached among the involved parties.
ADR offers several significant advantages that make it an attractive method of resolving disputes for both consumers and traders. Beyond being cost-effective and time-efficient, ADR encourages a cooperative and constructive approach to conflict resolution, often leading to more satisfactory outcomes for both parties.
For more information about the ADR mechanism visit this website or e-mail adr@mccaa.org.mt.
Odette Vella is director, Information and Research Directorate, MCCAA.