ACT No. XLIV of 2021 An ACT to amend the Consumer Affairs Act, Cap. 378 and other Laws, and to make ancillary and consequential provisions thereto.

I assent.

(L.S.)

GEORGE VELLA

President

23rd July, 2021

ACT No. XLIV of 2021

An ACT to amend the Consumer Affairs Act, Cap. 378 and other

Laws, and to make ancillary and consequential provisions 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 Act

commencement.

and other Laws (Amendment) Act, 2021.

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

Tourism and Consumer Protection may by notice in the Gazette

establish, and different dates may be so established for different

provisions of this Act.

PART I

Amendments to the Consumer Affairs Act

This Part amends the Consumer Affairs Act and it shall be

read and construed as one with the Consumer Affairs Act, hereinafter

in this Part referred to as "the principal Act".

In article 2 of the principal Act the definition "Consumer Amendment of

Protection Co-operation Regulation" shall be substituted by the article

principal Act.

following new definition

" "Consumer Protection Co-operation Regulation" means

Regulation (EU) 2017/2394 of the European Parliament and of

the Council of 12 December 2017 on cooperation between

national authorities responsible for the enforcement of consumer

protection laws and repealing Regulation (EC) No. 2006/2004

Provided that for the purposes of the implementation

of the Consumer Protection Co-operation Regulation, the

definitions contained therein shall apply, without prejudice to the

definitions contained in this Article;".

Article 12 of the principal Act shall be amended as follows

Amendment of

article 12 of the

principal Act.

(a) sub-article (1) thereof shall be substituted by the

following new sub-article

"(1) Saving the provisions of article

17(1)(f) of the Malta Competition and

Consumer Affairs Authority Act, to ensure

the observance of the provisions of this Act

and any regulations made thereunder, the

Director General shall have the power to carry

out investigations of his own motion or upon

a reasonable allegation in writing made by

any person including by a qualified entity, of

an infringement of the provisions of this Act

and any regulations made thereunder."; and

(b) sub-article (5) thereof shall be substituted by the

following new sub-article

"(5) Without prejudice to articles 12A and 13,

where, upon the conclusion of an investigation, it appears

prima facie to the Director General that an infringement of

a provision of this Act or of any regulations made

thereunder has occurred, the Director General shall

institute judicial proceedings against the person concerned

before the Civil Court by means of a sworn application.".

Article 12A of the principal Act shall be substituted by the Substitution of

article 12A of

the principal

Act.

following new article

(1) At any stage of an investigation

initiated according to article 12, or any stage of

judicial proceedings instituted according to article

12(5), the Director General may seek to obtain or to

accept commitments from the person concerned to

cease the alleged infringement, including also, on

the initiative of the person concerned, additional

remedial commitments for the benefit of consumers

that have been affected by the alleged infringement

Provided that in such instances the

Director General together with the person

concerned shall have the right to demand that the

investigation or the judicial proceedings, as the case

may be, are terminated by means of the

commitments procedure which includes the

imposition of a penalty by the Civil Court on the

person concerned, as provided for in the following

provisions of this article.

(2) The termination of the investigation or

of the judicial proceedings, as the case may be, by

means of the commitments procedure shall be

granted by virtue of a judgement delivered by the

Civil Court upon the demand made jointly by the

Director General and the person concerned, where

the Director General and the person concerned

agree that the investigation or the judicial

proceedings, as the case may be, are terminated by

means of the commitments procedure, which

includes the imposition of a penalty by the Civil

Court according to article 106A

Provided that in those instances where

the investigation concerns more than one person,

not all persons concerned who are under

investigation or who are subject to judicial

proceedings instituted according to article 12(5)

must agree to submit to the commitments

procedure. In such instances the investigation or the

judicial proceedings shall continue with regard to

that person or persons concerned who do not agree

to submit to the commitments procedure.

(3) The joint demand mentioned in sub-

article (2) shall be made by means of a joint

application filed in the Civil Court

Provided that the Civil Court must be

satisfied that all the requirements of sub-article (7)

are reflected in the joint application

Provided further that after the Civil

Court considers that the requirements of sub-article

(7) have all been satisfied, the Civil Court shall

appoint a sitting to confirm that the person

concerned is not contesting the contents of the

commitments submissions and that all the parties

concerned express their unconditional willingness

to terminate the investigation or the judicial

proceedings by means of the commitments

procedure, after which sitting, the Civil Court shall

pronounce judgement on the basis of the joint

application

Provided further that the joint

application shall, solely for information purposes,

also be notified to any qualified entity that had

alleged the infringement according to article 12(1).

(4) In the course of an investigation the

Director General may prior to instituting judicial

proceedings according to article 12(5), if he deems

it appropriate for the expeditious and efficient

conclusion of the investigation, invite the person

concerned to indicate in writing, within the time

limit set by the Director General, whether the

person concerned is prepared to engage in

commitments discussions with a view to possibly

introducing commitments submissions

Provided that the Director General shall

not be obliged to take into account the replies

received after the expiry of that time limit

Provided further that at any time during

the course of an investigation the person concerned

may also request to engage in commitments

discussions with the Director General

Provided further that the decision

regarding the initiation of the commitments

discussions falls within the exclusive competence

of the Director General.

(5) Should the Director General ascertain

that sufficient progress in the commitments

discussions has taken place, the Director General

shall invite the person concerned to introduce

commitments submissions before the Director

General within a time limit as set by the Director

General with a view to conclude the commitments

procedure

Provided that before the Director General sets a

time limit to introduce commitments submissions, the

person concerned may be informed of the main elements

of the suspected infringement, consisting of

(a) the evidence found;

(b) the legal assessment of the facts;

and

(c) the specific amount of the penalty

to be requested by the Director General

Provided further that before the

Director General sets a time limit for the

person concerned to introduce commitments

submissions, the person concerned may have

limited access to the file of the investigation

concerning the case which is granted only to

the extent that the Director General deems

reasonable in view of the objectives of the

commitments procedure. If access to the file

is granted, the Director General shall provide

partial access to the case file by providing

non-confidential versions of any specified

accessible document listed in the case file at

that point in time

Provided further that if the person

concerned fails to submit the commitments

submissions within the time limit set by the

Director General, it shall be considered that

the person concerned has withdrawn from the

commitments procedure.

(6) The documents and the information

exchanged between the Director General and the

person concerned during the commitments

procedure are confidential

Provided that the information given

according to sub-article (5) shall be confidential vis-

à-vis third parties, save where the Director General

has given a prior explicit authorisation for

disclosure

Provided further that the exchanged

documents will only be accessible to other persons

concerned who are under investigation or who have

been served with a sworn application according to

article 12C, if the lack of access to these documents

would hinder the rights of defence of these other

persons concerned.

(7) The commitments submissions which

are to be included in the joint application shall

contain a voluntary statement by the person

concerned containing the following information

(a) a statement by the person

concerned, clearly and unequivocally

admitting his infringement of those provisions

of the Act and of the regulations made

thereunder mentioned in the investigation or

in the judicial proceedings;

(b) a factual and brief description of

the conduct of the person concerned, the

objective of the conduct and the way in which

it was carried out, its duration and the extent

in which the person concerned was involved;

(c) a statement of the person

concerned declaring that he accepts the

amount of the penalty that is being requested

by the Director General in the joint

application, as reduced according to sub-

article (9);

(d) a statement of the person

concerned to the effect that he was

sufficiently informed by the Director General

regarding the main elements of the suspected

infringement contained in sub-article (5) and a

declaration of the person concerned that he

was given sufficient opportunity to be heard

and to make his views known to the Director

General;

(e) a statement of the person

concerned that he will waive his right to

obtain further or full access to the file of the

investigation concerning his case;

(f) a statement of the person

concerned containing his waiver of his right to

appeal and, or to challenge in any way the

commitments procedure and, or the

judgement of the Civil Court including the

penalty; as well as his waiver of any action or

claim arising from the same commitments

procedure and, or related to the judgment of

the Civil Court and, or to the penalty; and

(g) a statement of the person

concerned that he agrees with the contents of

the commitments submissions and that he

agrees that a joint application is filed in Civil

Court with the Director General to terminate

the investigation or the judicial proceedings,

as the case may be, by means of

commitments, and to request the Civil Court

to deliver a judgement according to the

commitments submissions

Provided that together with the

commitments

submissions

the

joint

application shall also include a statement by

the Director General

(a) agreeing

with

the

commitments submissions of the person

concerned;

(b) specifying the amount of the

penalty he is requesting to be imposed

on the person concerned as reduced

according to sub-article (9); and

(c) requesting the Civil Court to

deliver a judgement to terminate the

investigation

or

the

judicial

proceedings, as the case may be, by

means of commitments based on the

commitments submissions of the person

concerned contained in the joint

application and to impose the amount of

the penalty as requested by the Director

General

Provided

further

that

the

commitments submissions may also include

additional remedial commitments for the

benefit of consumers that have been affected

by the alleged infringement and adequate

remedies to the consumers that have been

affected by that infringement intended to

contribute to removal of the adverse impact

on affected consumers. Those remedies may

include, inter alia, repair, replacement, price

reductions, the termination of contract or the

reimbursement of the price paid for the goods

or services, as appropriate, to mitigate the

negative consequences of the infringement on

the affected consumer

Provided further that this shall be

without prejudice to a consumer’s right to

seek redress through the appropriate means

where the consumer would not have benefited

from the remedies that the person concerned

may have provided.

(8) Commitments discussions may also be

proposed jointly by the parties at a later stage, when

a sworn application according to article 12(5)

would have already been filed by the Director

General before the Civil Court

Provided that the Civil Court may

adjourn two sittings so that within such time the

parties would be able to consider the commitments

procedure and file a joint application as referred to

in sub-article (3)

Provided further that if the Director

General and, or the person concerned fail to file a

joint application within the adjourned two sittings

allocated by the Civil Court, proceedings against

the person concerned shall continue according to

the stage where the proceedings before the Civil

Court had arrived.

(9) If the person concerned agrees to

terminate the investigation or the judicial

proceedings by means of commitments, by filing

together with the Director General the joint

application, the Director General shall reward the

person concerned for the commitments, by reducing

between ten to thirty-five percent (10% - 35%) of

the amount of the penalty requested to be imposed

by the Civil Court on the person concerned

Provided that the penalty, for each

infringement, shall not be less than four thousand

six hundred and fifty euro (€4,650).

(10) The Director General may decide at his

own discretion at any time during the commitments

discussions to discontinue the commitments

procedure altogether in a specific case or with

respect to one or more of the parties involved, if, for

instance

(a) procedural efficiencies are not

likely to be achieved; or

(b) the commitment submissions do

not contain all the requirements mentioned in

sub-article (7); or

(c) the person concerned does not

have a sincere intention of submitting to

commitments or does not cooperate or has

breached the confidentiality obligation by

revealing to any third party the content of the

commitments meetings held with the Director

General or the contents of the documents to

which access has been granted

Provided that in case where the

Director

General

discontinues

the

commitments discussions for any reason as

provided for in this sub-article or in the case

where the person concerned or the Director

General, as the case may be, withdraw or

discontinue the commitments procedure as

provided for in sub-articles (5) and (8), the

case shall proceed according to the stage

where the investigation or proceedings have

arrived.

(11) If the commitments procedure is

discontinued either by the Director General or by

the person concerned during the investigation or

during the judicial proceedings, any information

and any document provided by the person

concerned during the commitments procedure

cannot be used as evidence to establish an

infringement of those provisions of the Act and of

the regulations made thereunder mentioned in the

investigation or in the judicial proceedings against

the person concerned or other parties to the

investigation before any court of law

Provided that the foregoing provision of

this sub-article is without prejudice to any

consumers’ judicial action, with regard to consumer

claims or actions for damages, including collective

proceedings

according

to

the

Collective

Proceedings Act

Provided further that documents and, or

information which were already in the possession of

the Director General prior to being presented by the

person concerned and any information which can be

requested by the Director General according to the

Act, can be used as evidence by the Director

General and before any court of law to establish an

infringement of the Act and the regulations made

thereunder, against the person concerned or against

any other persons concerned or against any other

party to the investigation.".

6. In sub-article (2) of article 12B of the principal Act the words Amendment of

" ".Addition of new Part IIA and new articles to the principal Act." article

shall be deleted.

7. In the provisions of Part IIA of the principal Act wherever the Amendment of

word "defendant" occurs it shall be substituted by the words "person the

8. Article 12C of the principal Act shall be amended as follows

(a) paragraph (c) of sub-article (1) thereof shall be

substituted by the following new paragraph

"(c) contain a request by the Director General to the

Civil Court for

(i)

the imposition of a penalty on the person

concerned according to article 106A for each

infringement

Provided that the Director General may

also indicate a specific amount of the penalty either

in his sworn application or by a note presented in

Court during the judicial proceedings; and, or

(ii) any other remedy as contemplated in this

Act; and, or

(iii) any other relevant order, including a

compliance order or any other order, that may be

necessary according to the circumstances of the case

including, where appropriate, and where no other

effective means are available to bring about the

cessation or the prohibition of an infringement under

this Act and of any other regulations made

thereunder, and in order to avoid the risk of serious

harm to the collective interests of consumers

-

to remove content or to restrict

access to an online interface or to order the

explicit display of a warning to consumers

when they access an online interface;

-

to order a hosting service provider

to remove, disable or restrict access to an

online interface; or

-

where appropriate, to order domain

registries or registrars to delete a fully qualified

domain name and to allow the competent

authority concerned to register it

including by ordering a third party or other

public authority to implement such measures

Provided that the provisions

of article 156 of the Code of

Organization and Civil Procedure shall,

where applicable, also apply to the

sworn application."; and

(b)

immediately after sub-article (3) thereof there shall

be added the following new sub-article (4)

"(4) During the judicial proceedings

the person concerned in receipt of a sworn

application shall be entitled, upon a request to

this effect in his sworn reply, to have access to

the file of the investigation concerning his

case, without prejudice to the non-disclosure

of information or documents identified by the

Director General as containing business

secrets or other confidential information, or of

internal documents of the Director General or

of the Consumer Protection Authorities of

other Member States, and without prejudice to

the provisions contained in Part VIII of the

Malta Competition and Consumer Affairs

Authority Act. The Director General shall

provide such access to the file of the

investigation at any time prior to the

conclusion of his evidence.".

9. Article 12E of the principal Act shall be amended as follows

Amendment of

article 12E of

the principal

(a) sub-article (1) thereof shall be substituted by the

Act.

following new sub-article

"(1) In cases of urgency due to the risk

of immediate and serious harm to the

collective interests of consumers, the Director

General may, at any stage during an

investigation initiated according to article 12,

or at any stage during the judicial proceedings

initiated according to article 12(5), file an

application before the Civil Court requesting

that interim measures are issued for such

period of time to be established by the Civil

Court so that the person concerned remedies

the situation."; and

(b)

in sub-article (2) thereof the word "sworn" shall be

deleted.

10. Immediately after article 12F of the principal Act there shall Amendment of

article 12F of

be added the following new provisos

the principal

Act.

"Provided that the Civil Court shall also have the

power

(a) to remove content or to restrict access to an

online interface or to order the explicit display of a

warning to consumers when they access an online

interface;

(b) to order a hosting service provider to remove,

disable or restrict access to an online interface; or

(c) where appropriate, to order domain registries or

registrars to delete a fully qualified domain name and to

allow the competent authority concerned to register it,

where no other effective means are available to bring

about the cessation or the prohibition of an infringement under

this Act and of any other Regulations made thereunder, and in

order to avoid the risk of serious harm to the collective interests

of consumers

Provided further that the Civil Court may order a

third party or other public authority to implement such

measures.".

11. Article 12G of the principal Act shall be amended as follows

(a)

sub-article (9) thereof shall be deleted; and

(b) sub-article (10) thereof shall be renumbered as sub-

article (9).

12. Article 12H of the principal Act shall be amended as follows

(a) the marginal note thereof shall be substituted by the

following words "Procedure, Judgements and Publications.";

(b) sub-article (3) thereof shall be substituted by the

following new sub-article

"(3) Where the Civil Court has in its judgment

found the person concerned liable of an infringement or of

infringements of this Act or of any regulations made

thereunder, it shall impose a penalty according to article

106A for each infringement.";

(c) in sub-article (4) thereof the word "decisions" shall

be substituted by the word "judgments"; and

(d) immediately after sub-article (5) thereof there shall

be added the following new sub-articles

"(6) When publishing judgements and decrees, the

Civil Court shall have regard to the legitimate interest of

the person concerned in the protection of his business

secrets or other confidential information. The Civil Court

may give the parties concerned the opportunity to specify

the confidential parts of the judgement or decree which

they want to be excluded from publication

Provided that the Civil Court shall ultimately decide

about which version shall be published

Provided further that the Director General shall also

publish on the website of the Authority the judgement delivered

by the Civil Court.

(7) The Director General shall also publish on the

website of the Authority a notice whereby it is stated that a

sworn application has been filed according to article 12C having

regard to the legitimate interest of the person concerned in the

protection of his business secrets and other confidential

information. The publication may contain the name of the person

concerned against whom the Director General has filed a sworn

application and a brief description of the type of the alleged

infringement as well as the affected business sector.".

In sub-article (1) of article 13 of the principal Act the words Amendment of

article 13 of the

"article 12A" shall be substituted by the words "article 12".

principal Act.

Article 20 of the principal Act shall be amended as follows

Amendment of

article 20 of the

principal Act.

(a) in sub-article (1) thereof the words "does not exceed

three thousand five hundred euro (€3,500)" shall be substituted

by the words "does not exceed five thousand euro (€5,000)"; and

(b) in the proviso to paragraph (b) of sub-article (2)

thereof the words "exceeds three thousand five hundred euro

(€3,500)" shall be substituted by the words "exceeds five

thousand euro (€5,000)".

Article 103 of the principal Act shall be substituted by the Substitution of

article 103 of

following

the principal

Act.

103. (1) For the purpose of discharging his

" Entry of

inspection and

functions under this Act, without prejudice to the

other powers.

provisions of the Professional Secrecy Act, and to

the provisions of article 104 (2) of this Act, the

Director General may

(a) enter and search any premises,

land or means of transport that the trader

concerned by the inspection uses for purposes

related to his trade, business, craft or

profession, or to request other public

authorities to do so, in order to examine, seize,

take or obtain copies of information, data or

documents, irrespective of their storage

medium

Provided that the power to enter

and search premises used exclusively as a

place of residence shall only be exercised

when duly authorised by a warrant issued by a

Magistrate;

(b) make any inspection, conduct any

test and on paying or making tender therefor,

take any goods;

(c) seize

any

books,

records,

information, data or documents however kept

or stored for a necessary period and to the

extent necessary for the inspection;

(d) request any representative or

member of the staff of the trader concerned by

the inspection to give explanations of facts,

books, records, information, data or

documents relating to the subject matter of the

inspection and to record the answers;

(e) purchase goods or services as test

purchases, where necessary, under a cover

identity, in order to detect infringements

covered by this Act and to obtain evidence,

including the power to inspect, observe, study,

disassemble or test goods or services

Provided that the Director General

shall give to the person from whom anything

has been taken, a receipt for what has been

taken

Provided further that no entry and

search shall be effected between seven in the

evening and seven in the morning, unless the

Director General has reason to believe that

delay could cause the loss of necessary

information, and in such circumstances, the

entry and search shall only be exercised when

duly authorised by a warrant issued by a

Magistrate.

(2) Nothing in this Part shall be deemed to

detract from the powers of the Police under the

Criminal Code or any other law.

(3) In the course of any entry and search

under this Part, the Director General may request

the assistance of the Police.".

Article 104 of the principal Act shall be substituted by the Substitution of

article 104 of

following new article

the principal

Act.

"104.(1) The Director General may, for the

purpose of discharging his functions under this Act,

require any natural person or legal person to

provide any information in any manner, including

(a) by answering any questions,

orally or in writing; or

(b) by producing any relevant

documents, data or information related to an

infringement covered by this Act or any

Regulations made thereunder, in any form or

format and irrespective of their storage

medium, or the place where they are stored as

the Director General may consider to be

necessary

Provided that the Director General

may also require any public authority, body or

agency or any natural person or legal person

to provide any relevant information, data or

documents, in any form or format and

irrespective of their storage medium, or the

place where they are stored, for the purposes

of establishing whether an infringement

covered by this Act or any Regulations made

thereunder has occurred or is occurring, and

for the purposes of establishing the details of

such infringement, including tracing financial

and data flows, ascertaining the identity of

persons involved in financial and data flows,

and ascertaining bank account information

and ownership of websites.

(2) A person shall not be required to answer

any question if the answer may subject him to

criminal proceedings.".

The words "Administrative fines" in the marginal note of

article 106A of the principal Act shall be substituted by the word

"Penalties" .

The Second Schedule to the principal Act shall be amended as

(a) one of the two titles "SECOND SCHEDULE (Article

106A (3))" shall be deleted;

(b) wherever the word "defendant" occurs it shall be

substituted by the words "person concerned"; and

(c)

rule 7 thereof shall be substituted by the following

"For the infringement referred to in article 12A, the

amount of the penalty shall not be less than four thousand

six hundred and fifty euro (€4,650) and not more than

forty-seven thousand euro (€47,000).".

PART II

Amendments to the Malta Competition and Consumer Affairs

Authority Act

This Part amends the Malta Competition and Consumer Amendments to

Affairs Authority Act and it shall be read and construed as one with the the

Competition and

Malta Competition and Consumer Affairs Authority Act, hereinafter in Consumer

Affairs

this Part referred to as "the principal Act".

Authority Act.

In sub-article (1) of article 29 of the principal Act, Amendment of

immediately after paragraph (d) thereof, there shall be added the article

principal Act.

following new paragraphs

"(e) the addressee of an invitation by the Director General

to engage in commitments discussions under article 12A of the

Consumer Affairs Act;

(f) any person including a qualified entity making a

reasonable allegation in writing according to article 12(1) of the

Consumer Affairs Act.".

Article 70 of the principal Act shall be amended as follows

Amendment of

article 70 of the

principal Act.

(a) in sub-article (2)(b) thereof the words "the

Competition Act and Consumer Affairs Act and other Laws

(Amendment) Act, 2019:" shall be substituted by the words "the

Competition Act and Consumer Affairs Act and other Laws

(Amendment) Act, 2019, including appeals from decisions of the

Competition and Consumer Appeals Tribunal pending before the

Court of Appeal:";

(b) immediately after the first proviso to sub-article (2)

thereof there shall be added the following new proviso

"Provided further that the

provisions of the Consumer Affairs Act

existing after the entry into force of the

Consumer Affairs Act and other Laws

Act No. XLIV

of 2021.

(Amendment) Act, 2021, shall apply to

investigations commenced by the Director

General (Consumer Affairs) after such entry

into force, and to judicial proceedings filed

by the Director General (Consumer Affairs)

according to article 12(5) of the Consumer

Affairs Act at the conclusion of these

investigations:";

(c) in sub-article (5) thereof the words "the Competition

Act and the Consumer Affairs Act and other Laws (Amendment)

Act, 2019." shall be substituted by the words "the Competition

Act and the Consumer Affairs Act and other Laws (Amendment)

Act, 2019:" and immediately thereafter there shall be added the

following new proviso

"Provided that the provisions of

the Consumer Affairs Act existing after the

Act No. XLIV

entry into force of the Consumer Affairs Act

of 2021.

and other Laws (Amendment) Act, 2021 shall

apply to investigations commenced by the

Director General (Consumer Affairs) after

such entry into force, and to judicial

proceedings filed by the Director General

(Consumer Affairs) according to article 12(5)

of the Consumer Affairs Act at the conclusion

of these investigations."; and

(d) immediately after sub-article (6) thereof there shall

be added the following new sub-article

"(7) The provisions of article 12A of

the Consumer Affairs Act, existing prior to

Act No. XLIV

the entry into force of the Consumer Affairs

of 2021.

Act and other Laws (Amendment) Act, 2021,

shall continue to apply to any undertaking

obtained prior to the said entry into force of

the Consumer Affairs Act and other Laws

(Amendment) Act, 2021.".

The Third Schedule to the principal Act shall be substituted

by the following new Schedule

"THIRD SCHEDULE

(ARTICLE 18)

LIST OF EU LEGISLATIVE ACTS FOR THE PURPOSES OF

WHICH THE OFFICE FOR CONSUMER AFFAIRS IS THE

NATIONAL COMPETENT AUTHORITY

1. Council Directive 93/13/EEC of 5 April 1993 on unfair terms

in consumer contracts.

2. Directive 98/6/EC of the European Parliament and of the

Council of 16 February 1998 on consumer protection in the indication

of the prices of products offered to consumers.

3. Council Directive 1999/44/EC of the European Parliament

and of the Council of 25 May 1999 on certain aspects of the sale of

consumer goods and associated guarantees.

4. Regulation (EC) No. 261/2004 of the European Parliament

and of the Council of 11 February 2004 establishing common rules on

compensation and assistance to passengers in the event of denied

boarding and of cancellation or long delay of flights, and repealing

Regulation (EEC) No. 295/91.

5. Directive 2005/29/EC of the European Parliament and of the

Council of 11 May 2005 concerning unfair business-to-consumer

commercial practices in the internal market and amending Council

Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC

of the European Parliament and of the Council and Regulation (EC)

No. 2006/2004 of the European Parliament and of the Council (Unfair

Commercial Practices Directive).

6. Directive 2008/48/EC of the European Parliament and of the

Council of 23 April 2008 on credit agreements for consumers and

repealing Council Directive 87/102/EEC.

7. Directive 2011/83/EU of the European Parliament and of the

Council of 25 October 2011 on consumer rights, amending Council

Directive 93/13/EEC and Directive 1999/44/EC of the European

Parliament and of the Council and repealing Council Directive 85/577/

EEC and Directive 97/7/EC of the European Parliament and of the

Council.

8. Directive 2006/114/EC of the European Parliament and of the

Council of 12 December 2006 concerning misleading and comparative

advertising (only with regard to Articles 1, 2c, 4 to 8 thereof).

9. Regulation (EU) No. 181/2011 of the European Parliament

and of the Council of 16 February 2011 concerning the rights of

passengers in bus and coach transport and amending Regulation (EC)

No. 2006/2004.

10. Regulation (EU) No. 1177/2010 of the European Parliament

and of the Council of 24 November 2010 concerning the rights of

passengers when travelling by sea and inland waterway and amending

Regulation (EC) 2006/2004.

11. Directive 2006/123/EC of the European Parliament and of the

Council of 12 December 2006 on services in the internal market (with

regard to Article 20 thereof).

12. Regulation (EC) No. 1008/2008 of the European Parliament

and of the Council of 24 September 2008 on common rules for the

operation of air services in the Community (with regard to Articles 23

and 24 thereof).

13. Directive 2011/83/EU of the European Parliament and of the

Council of 25 October 2011 on consumer rights, amending Council

Directive 93/13/EEC and Directive 1999/44/EC of the European

Parliament and of the Council and repealing Council Directive 85/577/

EEC and Directive 97/7/EC of the European Parliament and of the

Council.

14. Regulation (EU) No. 524/2013 of the European Parliament

and of the Council of 21 May 2013 on online dispute resolution for

consumer disputes and amending Regulation (EC) No. 2006/2004 and

Directive 2009/22/EC (Regulation on consumer ODR).

15. Directive 2014/17/EU of the European Parliament and of the

Council of 4 February 2014 on credit agreements for consumers

relating to residential immovable property and amending Directives

2008/48/EC and 2013/36/EU and Regulation (EU) No. 1093/2010

(with regard to Articles 10, 11, 13, 14, 15, 16, 17, 18, 21, 22, 23,

Chapter 10 and Annexes I and II thereof).".

PART III

Consequential Amendments

Sub-paragraph (6) of item 4 of Tariff A in Schedule A of the

Code of Organization and Civil Procedure shall be substituted by the

following new sub-paragraph

"(6) (a) Notwithstanding the provisions of

paragraphs 3 and 4 and in addition to the fees

mentioned in paragraph 2, for the cases instituted

according to the Consumer Affairs Act and

regulations made thereunder, the Competition Act

and the Control of Concentrations Regulations, the

taxed fee shall be that of six-hundred and fifty euro

(€650).

(b) In the case of appeals from judgements

delivered according to the Consumer Affairs Act

and regulations made thereunder, the Competition

Act and the Control of Concentrations Regulations,

sub-paragraph (7) of paragraph 3 shall apply mutatis

mutandis.".

(1)

The Consumer Claims Tribunal Rules shall be amended Amendments to

the Consumer

as follows

Claims Tribunal

Rules.

(a) the words "three thousand and four hundred and

ninety-four euro and six cents (3,494.06)", wherever they occur ,

shall be substituted by the words "five thousand euro (€5,000);

(b) the First Schedule thereof shall be substituted by the

following new Schedule

"FIRST SCHEDULE

TARIFF A

Fees payable in the Registry of a Tribunal

1. For filing a notice of claim or a reply together with a notice of

counterclaim

1.1 where the amount claimed does not exceed €580.00........€7.00

1.2 where the amount claimed does not exceed €1,165 ……€11.50

1.3 where the amount claimed does not exceed €2,330 ……€18.50

1.4 where the amount claimed does not exceed €3,500 ……€23.00

1.5 where the amount claimed exceeds €3,500 ……………€27.50

2. For filing a reply to a claim without a notice of counterclaim

or a reply to a counterclaim ………………………………………€7.00

3. For the filing of any application or any other act including the

filing of a technical referee’s report ……………………………€2.00

4. For every service ……………………………………...€2.50

5. For each definitive decision of a Tribunal

5.1 In respect of the first €1,165 ………………………………€9.50

5.2 In respect of any value in excess of €1,165 ……………€18.50

TARIFF B

Fees payable in respect of Publications

1. For the publication of adverts in the Gazette, for every

insertion ……...€5.00

TARIFF C

Fees payable in the Registry of the Court of Appeal

1. For the filing of an application of appeal ……………€35.00";

(c) in the Second Schedule thereof the number

"€3,494.06", wherever it occurs, shall be substituted by the

number "€5,000".

The Credit Agreements for Consumers relating to Immovable

Residential Property Regulations shall be amended as follows

(a) immediately after sub-regulation (6) of regulation

17C thereof there shall be added the following new sub-

regulation

"(7) In accordance with sub-regulation (2)(1)(a) of

regulation 3A and in terms of sub-regulations (2) and (3) of

this regulation, the Director General shall adopt measures

on the requirements regarding arrears and foreclosure

which emanate from the EBA Guidelines with the

reference EBA/GL/2015/12 as set out in the Fourth

Schedule

Provided that the terms used and defined in

these Regulations shall have the same meaning assigned to

them in the Guidelines in the Fourth Schedule."; and

(b) immediately after the Third Schedule thereof there

shall be added the following new Schedule

"FOURTH SCHEDULE

(Regulation 17C)

Guidelines on the requirements regarding arrears and foreclosure

Guideline 1: Establishment of policies and procedures

1.1 The creditor should establish, and keep up to date, procedures

to detect, as early as possible, consumers going into payment

difficulties.

1.2 The creditor should establish, and keep up to date, policies

and procedures for the effective handling of and engagement with

consumers in payment difficulties. The consumer engagement policy

should include that the creditor provides adequate information, for

example, through websites and written materials, and support for

consumers in payment difficulties.

1.3 The creditor should provide adequate training for staff dealing

with consumers in payment difficulties.

Guideline 2: Engagement with the consumer

2.1 When a consumer goes into payment difficulties, the creditor

should work with the consumer to establish why the difficulties have

arisen and for the creditor to take appropriate steps.

2.2 Any interaction by the creditor with the consumer in relation

to their payment difficulties should respect the consumer’s privacy.

2.3 The creditor, as well as any agents acting on behalf of the

creditor, should maintain a level of contact and communication with a

consumer in payment difficulties that is proportionate to the

information requirements, and not excessive.

Guideline 3: Provision of information and assistance to the

consumer

3.1 The creditor should communicate clearly and in plain

language.

3.2 The creditor should provide support and, at least, the

following information to consumers in payment difficulties

(a)

the number of payments either missed or only paid in

part;

(b)

the total sum of the payment shortfall;

(c)

the charges incurred as a result of the payment

shortfall;

(d) the importance of the consumer co-operating with the

creditor to resolve the situation.

3.3 In cases where the consumer’s payment difficulties persist,

the creditor should provide the following information to the consumer

(a) information regarding the consequences of missing

payments (e.g. costs, default interest rate, possible loss of

property, etc.); and

(b)

information

about

available

government/public

schemes or support.

Guideline 4: Resolution process

4.1 The creditor should take into account the individual

circumstances of the consumer, the consumer’s interests and rights and

his/her ability to repay when deciding on which steps or forbearance

measures to take. Forbearance measures may include one or both of

the following concessions to the consumer

1. A total or partial refinancing of a credit agreement;

2. A modification of the previous terms and conditions

of a credit agreement, which may include among others

(a)

extending the term of the mortgage;

(b) changing the type of the mortgage (such as,

changing the type of mortgage from a capital and interest

mortgage to an interest only mortgage);

(c) deferring payment of all or part of the

instalment repayment for a period;

(d)

changing the interest rate;

(e)

offering a payment holiday.

Guideline 5: Documentation of dealings with the consumer and

retention of records

5.1 The creditor should document the reasons why the option(s)

offered to the consumer are appropriate for his/her individual

circumstances and should make and retain adequate records of its

dealings with the consumer in payment difficulties for a reasonable

period of time.".

Passed by the House of Representatives at Sitting No. 489 of the

14th July, 2021.

CLAUDETTE BUTTIGIEG

Deputy Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€2.43