When promoting and selling products and services, traders are legally bound to provide consumers with clear and unambiguous information so that they can make an informed purchase decision. It is, in fact, illegal and hence prohibited for sellers to engage in commercial practices that are likely to impair consumers’ ability to make an informed choice.
There are two types of commercial practices that are considered unfair: misleading and aggressive practices.
Commercial practices can be misleading either through false information or through omissions, because consumers need information to make informed choices. More specifically, consumer legislation prohibits commercial practices that present false or inaccurate information regarding a product’s main characteristics, such as the nature of the product, its availability, price, benefits or risks.
Consumer law also mentions specific examples of commercial practices that in all cases and under any circumstances are considered downright misleading and hence banned. Some of these blacklisted practices include:
Bait advertising, which include promotional practices where a trader makes a very attractive offer in order to attract consumers but does not have sufficient stock to meet the demand. The seller’s intention is to promote one product with the intention of selling another more expensive product;
Fake free offers, which include situations where consumers are informed that they will be given a gift or a product for free, but to actually get the gift they need to make some kind of payment;
Unsubstantiated claims where sellers make false claims regarding the benefits for consumers when using a specific product. These include claims about a product’s ability to cure illnesses.
Consumer legislation prohibits commercial practices that present false or inaccurate information regarding a product- Odette Vella
In cross-border transactions, sellers are also prohibited from giving the impression that aftersales service is available in another EU member state when this is not true. It is also considered an unfair commercial practice to falsely create the impression that the trader is not acting in the course of his trade but instead present themselves as consumers.
Aggressive sales practices are also considered unfair and therefore prohibited. A commercial practice is classified as aggressive when a trader uses harassment, coercion or undue influence to affect the consumer’s purchase decision. The Unfair Commercial Practices Regulations list a number of situations considered as aggressive selling, which include:
Making consumers believe they cannot leave the trader’s business premises until the contract of sale is concluded; Conducting business at a consumer’s home and refusing to leave despite being asked to do so; Explicitly informing consumers that if they do not buy the product or service, the trader’s job or livelihood will be in jeopardy; and Advertisements directly aimed at children to buy products or persuade adults to buy for them.
Commercial practices that are misleading or aggressive are not allowed in any business-to-consumer transactions, irrespective of the product or service, or the circumstance of the transaction, being it face-to-face, via telephone, internet and mail.
Furthermore, consumer legislation only protects consumers’ economic interests, so commercial practices that affect their health, safety, taste or decency are outside the scope of the legislation.
If consumers fall victim to an unfair commercial practice, they may report the sellers and seek redress for any financial loss incurred through the Office for Consumer Affairs at the MCCAA. Consumers may contact the authority on Freephone 8007 4400 or via the ‘Flag a Concern Form’ on the MCCAA website below.
WWW.MCCAA.ORG.MT