Part VIII of the Consumer Affairs Act bans unfair and abusive trading practices in all EU Member States. A free market economy provides consumers with the opportunity to choose from a variety of products and services.
To be able to make an informed choice, consumers have the right to be provided with clear and correct information about the products or services they are about to purchase. To safeguard this right, consumer legislation prohibits trading practices that impair consumers’ decision-making.
Mainly there are two types of commercial practices that are considered as unfair, misleading and aggressive. A commercial practice is considered misleading if it contains false information, or is likely to deceive the average consumer, even if the information presented is correct.
Leaving out important information when promoting products or services is also considered to be a misleading commercial practice because consumers need information to make informed choices. Traders may also be found guilty of engaging in misleading practices if the information they provide is unclear, hard to understand and/or ambiguous.
The Regulations list specific practices that are considered misleading and hence prohibited. Among these we find false claims that a particular product or service is free when it is not; prize promotions where there is no prize or consumers must make a payment to claim one; false claims that a trader is about to cease trading or move premises; false claims that products can cure illnesses or disabilities; giving the wrong impression that after-sales service is available in another EU Member State; and also falsely creating the impression that the trader is not acting in the course of his trade but on behalf of a consumer.
With regard to aggressive sales practices, these occur when a trader harasses consumers or puts a lot of pressure on the consumer to make a buying decision that otherwise the consumer would not have made. These type of practices also limit the consumer’s freedom of choice and that is why they are legally prohibited. As in misleading practices, the law lists a number of trading practices considered to be aggressive. These include situations where the trader creates the impression that the consumer cannot leave the premises until the sales contract is signed; or the trader refuses to leave a consumer’s home after being requested to do so; taking a consumer to a remote destination with no apparent return transport; and also advertisements directly aimed at getting children to buy products or persuade adults to buy for them.
Both misleading and aggressive commercial practices are banned in any business-to-consumer transaction, irrespective of the product or service, or the circumstance of the transaction, being it face to face, via telephone, internet and mail. However, this legislation only protects the economic behaviour of consumers. Other interests, such as health, safety, taste and decency, are outside the scope of the legislation.
Whenever consumers encounter trading practices that are misleading or aggressive, these may be reported to the MCCAA through the Flag a Concern form on the MCCAA website: www.mccaa.org.mt, by e-mail on info@mccaa.org.mt or by calling 8007 4400.
Odette Vella is director, Information and Research Directorate, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.