ACT No. XXX of 2015 AN ACT to amend the Consumer Affairs Act, Cap. 378, and for any other matter consequential or ancillary thereto.

I assent.

M ARIE L OUISE

(L.S.)

C OLEIRO P RECA

President

30th October, 2015

ACT No. XXX of 2015

AN ACT to amend the Consumer Affairs Act, Cap. 378, and for

any other matter consequential or ancillary thereto.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same as follows:-

(1) The short title of this Act is the Consumer Affairs Short title and

(Amendment) Act, 2015, and this Act shall be read and construed as commencement.

one with the Consumer Affairs Act, hereinafter referred to as "the Cap. 378.

principal Act".

(2) This Act shall come into force on such date as the Minister

responsible for consumer affairs may by notice in the Gazette

appoint, and different dates may be so appointed for different

provisions or for different purposes of this Act.

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

immediately before the definition "advertisement",

there shall be added the following new definition

" "ADR" means alternative dispute res-

olution;";

(b) immediately after the definition "registered

consumer association" there shall be added the following new

definition

" "sales contract" means any contract under

which the trader transfers or undertakes to transfer

the ownership of goods to the consumer and the

consumer pays or undertakes to pay the price

thereof, including any contract having as its object

both goods and services;"; and

(c) immediately after the definition "services" there

shall be added the following new definition

" "services contract" means any contract other

than a sales contract under which the trader

supplies or undertakes to supply a service to the

consumer and the consumer pays or undertakes to

pay the price thereof;".

Sub-article (1) of article 7 of the principal Act shall be

amended as follows

(a)

in paragraph (f) thereof for the words "any other

aspect of consumer credit arrangements." there shall be

substituted the words "any other aspect of consumer credit

arrangements; and"; and

(b) immediately after paragraph (f) thereof there shall

be added the following new paragraph

"(g) to provide for any matters that may be

required for the purpose of complying with any

international obligations of Malta related to

consumer affairs, in particular for the purpose of

complying with any requirements however so

described of the European Union.".

Part VI of the principal Act entitled "Unfair contract

terms", Part VII of the principal Act entitled "Unfair commercial

practices and illicit schemes", Part VIII of the principal Act entitled

"Liability for defective products", Part IX of the principal Act entitled

"Sale of goods to consumers", Part X of the principal Act entitled

"Compliance orders", Part XI of the principal Act entitled

"Enforcement" and Part XII of the principal Act entitled

"Miscellaneous" shall be re-numbered as Parts VII, VIII, IX, X, XI,

XII and XIII respectively and any references to these Parts as they

were prior to their re-numbering in any legislation shall as from the

date of the coming into force of this provision be construed as

references to the Parts as renumbered.

Immediately after article 43 of the principal Act, there Addition of new

Part VI to the

shall be added the following new Part

principal Act.

"PART VI

Consumer Alternative Dispute Resolution

43A. In this Part unless the context

Interpretation.

otherwise requires

"this Part" includes any regulations made

under this Part; and

"residual ADR entity" means any such

entity as the Minister may, after consultation

with the Council, designate to deal with any

disputes that consumers may have with traders

in relation to which there is no existing ADR

entity in place competent to deal with such

disputes.

43B. Consumers shall have the right to

Consumer right

to access ADR

have access to ADR procedures with regard to

procedures.

disputes that they may have with traders

Provided that where there is no ADR

entity which is competent to deal with the

resolution of any such disputes, then such

disputes shall be referred to any such residual

ADR entity or entities as may from time to time

be designated in accordance with this Part.

43C. (1) The entity listed in the Third

Residual ADR

entity or

Schedule to this Act shall perform the function

entities.

of a residual ADR entity. The Minister may,

after consultation with the Council, by order

designate any other entity or entities to

undertake the function of a residual ADR entity

or entities which entity or entities shall be listed

in the Third Schedule

Provided that the Minister may by

order, after consultation with the Council, amend

the said Schedule and in particular the Minister

may appoint different entities to deal with

different types of disputes

Provided further that the Minister

shall by order amend the said Schedule at the

written request of the Council if he is satisfied

that the Council considers that an entity that has

been designated as a residual ADR entity does

not satisfy or no longer satisfies one or more

requisites under this Part.

(2) An entity designated to exercise the

functions of a residual ADR entity shall, in

doing so, act independently of the Council, other

than in compliance with any legitimate orders,

however so described, that the Council may

impose to ensure that the aforesaid entity

adheres to its obligations at law in the exercise

of its role as a residual ADR entity.

43D. (1) The Council shall be the

Role of the

Council as the

competent ADR regulatory authority and in the

competent

ADR

exercise of such a role the Council shall perform

regulatory

the following functions

authority under

this Part.

(a)

determine whether an entity is

qualified to act as an ADR entity;

(b) monitor the operations and

conduct of ADR entities;

(c)

ensure compliance by ADR

entities with their obligations at law and

ensure abidance by traders of their

obligations at law with regard to ADR, and

where necessary take any such measures as

it may consider appropriate; and

(d) perform any other functions as

the Minister may from time to time require

it to undertake in relation to the conduct of

ADR procedures in Malta.

(2) The Council shall in the exercise of

its functions under this Part act independently

and shall not take or seek instructions however

so described from any other person.

(3) Unless provided otherwise at law, the

Council in the exercise of its functions under

this Part shall regulate its own procedure.

(4) The Council shall exercise its

regulatory functions however so described

through its Chairman and, or through any one or

more of such public officers and, or such public

entity or entities as may from time to time be

authorized by the Council for that purpose

Provided that no such functions shall

be exercised by any entity which is or may have

been designated to act as a residual ADR entity,

or else is or was an ADR entity.

43E. The provisions of articles 102, 103,

Application of

certain

104, 105 and 106 of Part XII, in so far as they

enforcement

provisions of

relate to the exercise of the powers of

Part XII.

enforcement of the Director General in the

performance of his regulatory functions, shall

similarly apply to the Chairman of the Council

when acting to ensure compliance with

applicable consumer ADR requirements as

prescribed by law or with any regulatory

decisions as the Council may issue in

accordance with its powers under this Part.

43F. A regulatory decision taken by the

Application of

Part XII with

Council under this Part may be contested in the

regard to

appeals from

same manner as if it is a decision taken by the

regulatory

Director General under this Act, and the

decisions taken

by the Council

provisions of Part XII in so far as they relate to

under this Part.

any aspect concerning the appeal of any such

decision taken by the Council before the

Appeals Tribunal or before the Court of Appeal

as the case may be, shall apply accordingly.

43G. The Minister may make regulations

Power to make

regulations.

on any aspect relating to consumer to trader

alternative dispute resolution procedures, on the

role and functions of the Council under this Part,

and for the better functioning of such ADR

procedures in Malta, including the power of the

Council to impose administrative penalties not

exceeding fifty thousand euro (€50,000) and, or

not exceeding one hundred euro (€100) for each

day of non-compliance, and the procedure to be

followed by the Council before taking a final

decision whether to impose such penalties or not

under this Part.".

Immediately after the Second Schedule to the principal Act Addition of

Schedule to the

there shall be added the following new schedule

principal Act.

"THIRD SCHEDULE

(Article 43C)

In accordance with the provisions of article 43C, the following

public entity is being designated to perform the functions of a residual

ADR entity

The Complaints and Conciliation Directorate established under

the Fourth Schedule of the Malta Competition and Consumer Affairs

Act (Cap. 510).".

The second proviso to paragraph 1.3 of the Fourth

Schedule to the Arbitration Act shall be substituted by the following

"Provided further that notwithstanding the provisions of

any other law other than the Consumer Affairs Act or any

regulations made thereunder in so far as such laws deal with the

resolution, however so described, of any consumer disputes, and

without prejudice to pending cases, the Arbitration Tribunal

shall have exclusive jurisdiction over these cases.".

The sub-title "Office for Consumer Affairs" of the Fourth

Schedule to the Malta Competition and Consumer Affairs Authority

Act shall be amended as follows

(a)

in paragraph 1 thereof for the words "with the

responsibility to create awareness of consumer rights" there

shall be substituted the words "with the responsibility to offer

assistance to consumers, to create awareness of consumer

rights"; and

(b) paragraph 2 thereof shall be substituted by the

following

"2. Complaints and Conciliation Directorate

with the responsibility of following disputes

lodged by consumers against traders, of proposing

solutions or bringing the parties together with the

aim of facilitating an amicable solution. This

Directorate shall in the effective handling and

resolution of any such disputes act independently

from the parties involved and from any other

persons.".

Immediately after paragraph (d) of article 2125 of the Civil

Code there shall be added the following new paragraph

"(e) where a consumer who has a dispute

with a trader, has recourse to an ADR procedure

in accordance with the Consumer Affairs Act,

the outcome of which procedure is not binding

on either party, until such time when the ADR

procedure is brought to a conclusion

Provided that the provisions of article

2 of the Consumer Affairs Act shall apply in

relation to this paragraph.".

Passed by the House of Representatives at Sitting No. 312 of the

26th October, 2015.

Ċ ENSU G ALEA

Deputy Speaker

R AYMOND S CICLUNA

Clerk of the House of Representatives

€0.90