In today’s competitive markets, businesses use various sales techniques to promote their products and services. Occasionally some businesses opt for sales tactics that pressure consumers into a buying decision.
To protect consumers from such deceptive and aggressive selling practices, Section VIII of the Consumer Affairs Act, explicitly forbids unfair commercial practices directed at consumers. This ensures that consumers are not misled or coerced into making purchasing decisions they would not have made without the influence of these tactics.
An unfair commercial practice refers to any tactic that compromises a consumer’s ability to make informed purchase choices or manipulates them into buying something. These consumer protection regulations cover all stages of the sales process. This includes the initial promotion of a product or service, the interaction between the trader and consumer during the sales transaction, and even extends to post-sales activities. These regulations aim to ensure that consumers are treated fairly and their purchasing decisions are not influenced by misleading or coercive tactics at any point in the process.
Certain commercial practices are considered inherently unfair and are thus prohibited. For instance, sales tactics that exert undue pressure on consumers to buy products or services they may not truly want or need are not allowed. Aggressive commercial practices limit consumers’ freedom of choice by employing harassment, coercion or undue influence, and may even involve physical force.
An unfair commercial practice refers to any tactic that compromises a consumer’s ability to make informed purchase choices or manipulates them into buying something
Moreover, it is unlawful for businesses to target vulnerable consumers with aggressive sales techniques. This includes individuals who may be more susceptible to manipulation due to factors such as mental or physical disabilities, advanced age, or a lack of experience. The law ensures that all consumers, regardless of their circumstances, are protected from unethical sales practices that compromise their autonomy and decision-making.
Examples of prohibited aggressive sales practices under consumer protection laws include various unethical tactics designed to pressure or manipulate consumers. Some of these illegal practices are:
- Traders entering consumers’ homes and refusing to leave until a purchase is made;
- Situations where consumers are made to feel trapped within a business premises, unable to leave until they agree to a purchase;
- Taking consumers to remote locations with no means of return transportation unless they agree to buy a product or service. This tactic preys on the consumers’ need to return home, forcing them to make decisions under duress;
- Traders employing scare tactics to convince consumers they must buy a product to avoid negative consequences, such as telling consumers that their safety or health is at risk unless they buy a specific product;
- Adverts that are deliberately designed to manipulate children by appealing directly to them, encouraging them to pester their parents or guardians into buying specific products. This approach takes advantage of a child’s lack of understanding about marketing and consumption;
- Constantly contacting consumers through various channels such as phone calls, e-mails or direct messages, pressuring them to make a purchase;
- Sending products to consumers without their prior consent and then demanding payment for these unrequested items. This deceptive practice can lead consumers to pay for something they never wanted or ordered;
- Using guilt to pressure consumers into buying by suggesting that failing to complete a purchase could result in the seller losing their job. This tactic exploits the consumer’s empathy to pressure them into a decision they wouldn’t otherwise make.
These aggressive tactics are forbidden in all business-to-consumer transactions, where the consumer is purchasing a product or service for personal use, and the trader is acting for business purposes. The protection applies to all forms of transactions, whether conducted face-to-face, over the phone, online, or through mail order.
It is important to note that consumer protection legislation focuses primarily on protecting the consumer’s financial interests. Therefore, compensation for aggressive sales practices generally involves a refund of money spent. Matters related to health, taste or decency fall outside the scope of these regulations.
Consumers who experience aggressive sales practices are encouraged to report them to the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority (MCCAA). Unresolved disputes with traders may also be referred to this office for necessary guidance and assistance.
Odette Vella is Director, Information and Research Directorate, MCCAA.