Consumers require clear information to make informed decisions as to what to purchase. As advertising is a key source of information, consumers have the legal right to be provided with accurate information on the products or services offered for sale.
There are, in fact, consumer protection regulations that prohibit traders from making statements in advertising that are not truthful or likely to mislead consumers. Omitting important information is also considered misleading and hence prohibited.
Misleading advertising is forbidden in all types of communication that promote products or services. The regulations cover the totality of business-to-consumer transactions, whether offline or online.
The prohibition of misleading claims is technology-neutral and applies regardless of the channel, medium or device used to carry out the business-to-consumer commercial practice. So, the regulations may be applied to, but not limited to, media advertising such as radio and TV, print advertising, and digital advertising, which includes websites and social media platforms. It also covers claims made by manufacturers, distributors, wholesalers and retailers.
Omitting important information is also considered misleading
Through consumer legislation, traders are not allowed to make false claims about products or services with regard to, for instance, benefits, availability, composition or prices. In addition to this, consumer protection rules provide a blacklist of specific practices that are considered downright misleading and therefore illegal. Some of these practices include:
Bait and switch. This occurs when a trader advertises a product or service that it never intends to provide. On the contrary, the objective is to sell a different product which is usually more expensive.
Fake free offers. This when in order to receive the ‘free’ offer, consumers need to make some kind of payment. The only costs consumers may be requested to pay are unavoidable costs, such as the cost of responding to the offer and the true/real cost of freight or delivery. Furthermore, these costs should be stated clearly in the material promoting the offer.
Unsubstantiated claims. This refers to certain benefits that traders claim their products will provide to consumers, when these benefits have never been proven. These include false claims about a product’s ability to cure illnesses, dysfunctions or malformations.
Fake limited offers. This is when a trader falsely claims that a product will only be available for a limited time in order to elicit an immediate decision and deprive consumers of sufficient opportunity or time to make an informed choice. It is also prohibited for traders to falsely claim they are about to cease trading or move premises.
With regard to cross-border disputes, it is considered misleading for traders to give the impression that aftersales service is available in another EU member state when it is not. Traders are also prohibited from falsely creating the impression that they are not acting as a trader but instead, falsely present themselves as a consumer.
Should consumers encounter trading practices that are misleading, these may be reported to the Office for Consumer Affairs at the MCCAA either by calling the authority’s freephone: 8007 4400 or via the ‘Flag a Concern Form’ available on the MCCAA website: www.mccaa.org.mt.
Odette Vella, Director, Information and Research Directorate