The Consumer Affairs Act sets out specific rules with regard to the obligations of sellers on how goods sold to consumers should be supplied. It is imperative that traders are aware of these obligations to avoid unnecessary disputes that may diminish their company’s good reputation.
Sellers are in the first instance obliged to deliver goods that conform with the sales contract. More specifically, consumer law states that goods sold to consumers must be as described in the sales contract, be of the quantity and quality agreed, and have the functionality, compatibility and interoperability required.
In addition, the goods need to be fit for the particular purpose for which consumers require them, which purpose the latter made known to the seller at the time of sale. It is important that consumers have evidence that the seller accepted to provide such products.
The Sale of Goods Regulations also list several objective requirements that goods sold to consumers must conform to. The first of these is that goods must be fit for the purpose/s for which goods of the same type would normally be used. Sellers must also supply goods the quality of which corresponds to the description of the sample or model that the seller showed the consumer before the sales contract was concluded.
Where applicable, goods must be supplied with the accessories and installation instructions. Finally, the goods must possess the quality, quantity and features normal for goods of the same type and which the consumer may reasonably expect given the nature of the goods and any public statements made by the seller.
In the case of goods sold with digital elements, the seller is responsible to ensure that the consumer is informed of and supplied with updates necessary to keep the goods in conformity with the sales contract for the period of time the consumer may reasonably expect given the type and purpose of the goods and the digital elements.
In situations where these legal requirements are not met, sellers are liable to either repair or replace the products in question free of charge. A proportionate reduction of the price or the termination of the sales contract may be claimed in situations where the trader cannot complete the repair or replacement within a reasonable time or without causing a significant inconvenience to consumers.
The termination of the sales contract or partial refund may also be opted for where the product’s problem is of a serious nature and where the seller has refused to provide free repair or replacement.
A consumer cannot ask for a sales contract to be terminated when the lack of conformity is minor- Odette Vella
When consumers opt for a price reduction, the refunded amount must be proportionate to the loss in the value of the goods because of its defect or lack of conformity. A consumer cannot ask for a sales contract to be terminated when the lack of conformity is minor or insignificant.
The time limit for consumers to claim these remedies is two years from the goods’ date of purchase. These two years are suspended for the duration of the time it takes the seller and the consumer to resolve the dispute and a suitable remedy provided to the consumer.
When a fault develops in a product within the first year of its sale, it is assumed that the product was faulty at the time of the sale. This rule applies unless the seller can prove otherwise or unless this presumption is incompatible with the nature of the goods or of the defect of the product.
Sellers are not legally obliged to provide a remedy when consumers change their mind or make a wrong purchase decision. The right for remedy also does not apply in situations where sellers inform consumers that the product they are about to buy does not have the particular characteristic they are seeking and the consumer accepts the product nonetheless and proceeds with the purchase.
When the installation does not form part of the sales contract, incorrect installation of the product exempts sellers from liability. In the case of goods with digital elements, sellers are also not responsible for lack of conformity when it is the consumer who fails to install the updates supplied by the seller. However, the seller must properly inform the consumer about the updates’ availability and the consequences if the consumers do not install it.
Traders are responsible to be aware of these legal obligations and to adhere to them.
When in doubt, sellers may contact the Office for Consumer Affairs at the Malta Competition and Consumer Affairs Authority for information and guidance.
Odette Vella is director, Information and Research Directorate, MCCAA
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