EU EXPERT ADDRESSES MALTESE BUSINESSES ON NEW RULES TO PROTECT CONSUMERS AGAINST UNFAIR SALES AND MARKETING PRACTICE

European Commission Conference in Malta

EU expert Mr Giuseppe Abbamonte was the key note speaker in a Conference held on Friday 18th April, at the Mediterranean Conference Centre in Valletta. Mr Abbamonte, head of a team of experts in Consumer Protection legislation within the European Commission, explained the new EU rules on Unfair Commercial Practices that have recently came into force locally.

The new legislation cracks down on misleading advertising and bans a series of the most aggressive or abusive selling practices, such as 'pester power' advertising to children on the internet, bait advertising, pyramid schemes and false claims that products cure health problems. Existing rules on advertising are reinforced and new standards are set with respect to coercion, harassment and undue influence on consumers by sellers.

The 4 key elements of the new rules are:  

• A far reaching general clause defining practices which are unfair and therefore prohibited
• Detailed definitions of Misleading Practices and Aggressive Practices – the two main types of unfair practices
• Provisions that aim at preventing exploitation of vulnerable consumers
• An extensive Black List of practices which are banned in all circumstances, including the "dirty dozen" of unfair schemes that are well known to cause consumer detriment.

Meglena Kuneva, EU Commissioner for Consumer Affairs has said that "Unfair practices rip off consumers and distort competitive markets. There can be no place in Europe's Single Market for traders who pressure, bully or mislead people".

The conference was organised by the European Commission as part of the ongoing information campaign in Malta on consumers’ rights Insisti għad-drittijiet tiegħek. U dan bi dritt. The Conference was well attended by over 130 people from the business community including retailers, wholesalers, business executives, company managers, lawyers and other professionals involved in the marketing of products and/or services.

Mr Abbamonte stressed that all businesses large and small must get familiar with their obligations towards their clients under the new directive. Mr Abbamonte also raised the possible revision of EU legislation on business-to-consumer contracts.

Finance Minister Tonio Fenech delivered the closing speech and reiterated the importance of effective consumer protection legislation and the need for cooperation from both consumers and businesses so as to ensure a healthy ‘working environment’ for all.

The Unfair Commercial Practices EU Directive became part of Maltese law with the amendment to the Consumer Affairs Act that was adopted by Parliament on 29th January 2008. It has a direct impact on all businesses that are involved in the sale, promotion or marketing of goods and services to the consumer. The aim of the conference was to help companies and the legal profession to familiarise themselves with the new rules.

Dr Joanna Drake, Head of the European Commission Representation in Malta chaired the conference. The business community was represented by Mr Stefano Mallia, Senior Vice president of the Malta Chamber of Commerce and Enterprise and Mr Vince Farrugia, Director General of the GRTU.

For more information contact Content House Ltd on 21 320 712/3