Euro Adoption (Dual Display and Euro Pricing) Regulations,

L.N. 4 of 2007

EURO ADOPTION ACT

(CAP. 485)

Euro Adoption (Dual Display and Euro Pricing) Regulations,

IN EXERCISE of the powers conferred by article 3 of the Euro

Adoption Act, the Prime Minister and Minister of Finance has made

the following regulations>-

The title of these regulations is the Euro Adoption (Dual

Display and Euro Pricing) Regulations, 2007.

(Regulation 24)

Administrative Fines

Contravention

Infringement

Daily

Fine

Fine

(Lm)

(Lm)

Dual display not applied as specified in regulations.

No conversion table made available .

Prices normally displayed to three or more decimal

places not displayed to the same number of decimal

places in euro.

Acceptance of payments in euro not at the central

parity rate or the irrevocably fixed conversion rate.

Use of FAIR mark or indication of its award by a

person not awarded the mark or from whom the

mark has been suspended or withdrawn.

Incorrect conversion and#or rounding.

Increase in prices or addition of any amount or

charge to such prices for the sole reason that the

monetary changeover is taking place.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

The objective of these Regulations is to regulate the dual

display of prices, values and monetary amounts of goods and services

offered to a consumer and to ensure fair practices in euro pricing, thereby

facilitating the smooth changeover of the currency unit from the Maltese

lira to the euro.

In these regulations, unless the context otherwise requires>-

“Act” means the Euro Adoption Act<

“Authority” means the Authority designated under regulation

4 of these Regulations and to the extent of any authority given

includes any officer or employee of such Authority<

“central parity rate” means the central parity rate for the

Maltese lira in terms of the euro set on the entry of Malta into

ERM II on 2 nd May 2005<

“consumer” means any person viewing, requesting or using

the provision of a good or service, not for re-sale, at a price or for

an amount which will be representative of payment, or which the

person will be required to pay, for such provision<

“conversion rate” means the irrevocably fixed conversion rate

adopted for the Maltese lira as provided for in paragraph (c) of

Article 1 of Council Regulation (EC) No. 2169 of 2005<

“conversion table” means the official table published by the

NECC for the comparison of standard denominations of monetary

amounts in the Maltese lira as expressed in relation to the euro<

“dual display” in relation to a price or other monetary amount,

means the simultaneous display of an amount in the Maltese lira

and the euro<

“dual display period” means the period commencing on a

date not being before the 1 st July 2007 and ending on 30 th June

2008 and includes any such shorter period as may from time to

time be prescribed as a dual display period<

“Euro Observatory” and”“Observatory” mean the unit set up

in terms of regulation 4 of these regulations and to the extent of

any authority given, includes any officer and employee of the Euro

Observatory<

“FAIR” or the “Fair-pricing Agreements in Retailing” means

an initiative of voluntary commitment by any person, to comply

with a code of conduct regarding dual display, fair pricing, training

and adequate preparation for monetary changeover<

“monetary amount” means the amount showing the monetary

value of any goods or services being offered for sale or purchase

or being accounted for<

“monetary changeover” means the changeover of the national

currency from the Maltese lira to the euro<

“NECC” means the National Euro Changeover Committee.

“price” means the purchase price, and in all cases, the price

must be the final retail selling or unit price, including VAT and

any other taxes or charges.

“voluntary dual display period” means the period prior to the

dual display period during which a person may opt to display prices

in both Maltese lira and the euro.

There shall be a unit established within the Ministry of Finance Euro Observatory.

which shall be called the Euro Observatory, and which shall have the

following functions>-

(a) to be the designated authority for the purposes of

conducting the administrative procedures in terms of paragraph

(v) of sub-article (1) of article 3 of the Act<

(b) to administer the FAIR initiative<

(c) to direct and instruct on all such things as may be

necessary for ensuring compliance with the provisions of these

regulations.

(1) Without prejudice to the voluntary period mentioned in

regulation 7 hereunder, dual display shall be mandatory during the dual

display period in relation to any goods or services being provided or

offered for sale or in relation to any monetary amount or value

representative of such provision, or where a request for payment has

been made, or an obligation exists, under a legislative, contractual or

other obligation.

(2) Where the monetary amount or value for the provision

of any goods or services as aforesaid is made up of more than one

component that in total will determine such amount or value, dual display

shall be mandatory in relation to such total.

(3) The monetary amount to be paid for the provision of

any goods or services shall be displayed in a manner which is

distinguishable from the counter-value that is displayed for information

purposes.

(4) All prices which are normally displayed to three or more

decimal places shall also be displayed to the same number of decimal

places in euro for dual display purposes.

(5) Dual display shall not be mandatory in the following

cases>-

(a) in relation to transactions or services which are made

between or rendered to organisations<

(b) in relation to an Electronic Point of Sales System

(EPOS) as provided by commercial banks to retail establishments<

(c)

fiscal receipts generated by cash registers>

Provided that, should any tax incentives be offered for the

replacement of existing cash registers, such replaced cash registers

shall produce fiscal receipts with dual display according to these

regulations<

(d) where equipment or price displays, electronic or

mechanical, can only display one denomination and the cost for

modification for dual display will in the particular circumstances

be disproportionate to the benefits of dual display<

(e) television advertising where both price and contact

information are displayed for a very short period of time and where

dual display may confuse the consumer<

Provided that following the end of the dual display period,

all monetary amounts in television advertising shall be required to

be displayed in euro only<

(f) interactive voice response systems which indicate

payments or balances<

(g) where in exceptional circumstances, and after an

application is made to the Euro Observatory a concession is granted

allowing a derogation from the duty of dual display.

Provided that where in the cases referred to in sub-paragraphs

(b), (c), (d) and (g) above any such dual display is not provided

for, conversion tables shall be made available, and prominently

displayed, to the consumer.

The following provisions shall also apply in relation to dual Conversion and

rounding.

(a) the conversion of the Maltese lira into euro or vice-versa,

shall be carried out by the application of the central parity rate or

the conversion rate whichever is applicable<

(b) the central parity rate and the conversion rate shall be

applied up to six significant figures. They shall not be rounded or

truncated when making conversions<

(c) in the application of the central parity rate and the

conversion rate, the inverse use derived from these rates shall not

be used<

(d) monetary amounts converted from Maltese lira to the

euro shall be rounded to the nearest euro cent<

Provided that, if the result of a conversion is an exact mid-

value, it is to be rounded up<

(1) Any person opting to adopt the dual display prior to the Voluntary dual

display.

commencement of the dual display period may make an application on

the appropriate form to the Euro Observatory to subscribe to FAIR.

(2) The FAIR initiative shall be operative with effect from

the 15 th January 2007, or from such other day as the Minister may by

notice on the Gazette published prior to the 15 th January 2007 may

appoint.

(3) An application to subscribe to FAIR shall contain -

(a)

the relevant details of the applicant<

(b) the timetable being proposed for the implementation of

dual display<

(c) the training which may be required by staff of the

organisation dealing with the consumer<

(d) an undertaking by the applicant that prices will not be

increased for the reason that a monetary changeover is taking place

and that the applicant will abide by any guidelines published by

the NECC.

(1) The Euro Observatory shall assess the application to

ensure that the applicant meets the criteria for participation in the FAIR

initiative. For such purpose the Observatory may ask the applicant to

provide such further information or clarifications as it may consider

necessary.

(2) If the applicant does not meet the criteria, the

Observatory shall inform the applicant in writing, stating the reasons

why such criteria were not met.

(3) If the applicant meets the criteria, the Observatory shall

issue a letter of acceptance and the applicant shall be registered as a

participating organisation of the FAIR initiative in a register kept for

such purpose.

(1) Where, following registration, the Euro Observatory

ascertains that a participating organisation has reached a satisfactory

stage in the implementation of the timetable as proposed in paragraph

(b) of sub-regulation (3) of regulation 7, the Observatory shall award

the FAIR mark to such organisation.

(2) When an organisation has been awarded the FAIR mark,

the organisation shall display the mark in a prominent place at its retail

outlets and in its advertising and promotional material.

(3) No person shall use the FAIR mark or indicate that such

mark has been awarded, unless it has been awarded in accordance with

these regulations, or where the right to use the FAIR mark has been

suspended or withdrawn under regulation 10 of these regulations.

(1) Where a participating organisation does not comply with Withdrawal of

FAIR mark.

any requirements of the FAIR initiative and fails to comply with any

direction issued by the Euro Observatory for such purpose, it shall be

liable to an administrative penalty following the procedures established

under regulation 24 of these regulations.

(2) Without prejudice to the penalty that may be incurred

as aforesaid, where an organisation fails to comply with the direction

of the Observatory, the Observatory may suspend or withdraw the FAIR

mark.

(1) It shall be an obligation of a participating organisation Obligations of

participating

in the FAIR initiative -

organisations.

(a) to implement the dual display in terms of regulation 6

of these regulations<

(b) to allow for the proper training of staff dealing with the

consumer by the NECC<

(c) to provide for the dissemination of information material

published by the NECC<

(d) not to increase the price of any goods or services for the

reason that a monetary changeover is taking place<

(2) Compliance at all times by a participating organisation

with the provisions of the Consumer Affairs Act (Price Indications)

Regulations shall also be an implied condition for the participation in L.N. 283 of 2002.

the FAIR initiative.

In the case of vending machines, dual display shall be Vending machines.

applicable through a price-list of the items sold affixed to the machine.

Where the amount of the total of a hand-written invoice is Hand-written

invoicing.

shown in one currency, the consumer shall have the right to request,

and the person making out the invoice shall have the obligation to

provide, either a conversion table or the equivalent total value for dual

display purposes.

(1) In the case of banking services, dual display shall be

obligatory in the following cases>-

(a) Maltese lira deposits of cash and cheques into current

and savings accounts across bank counters<

(b) Maltese lira cash withdrawals from savings accounts

across bank counters<

(c) closure of savings and current accounts denominated in

the Maltese lira across bank counters<

(d) on ATM ‘fast cash’ screen displays for the withdrawal

of Maltese lira cash<

(e)

tariffs and scales of charges<

(f) final balances on all bank statements, including credit

card statements<

(g) price tariffs and other monetary amounts displayed on

bank websites (excluding internet banking)

(1) In the case of life insurance policies, dual display shall

apply on the premium amount due and on the capital sum and the annuity

insured.

(2) In the case of non-life insurance policies, dual display

shall apply on the premium amount due and the sums insured.

(3) Dual display shall also apply to any contractual charges

which will affect the premium amount and the sums insured.

Where a catalogue, printed prior to the period of dual display

is used for the provision of goods or services, the person whose goods

or services are advertised in the catalogue shall make arrangements for

the insertion of a list of all catalogue prices in both the Maltese lira and

the euro.

In the case of public transport, dual display shall apply in

relation to all applicable transport fares and a list of such fares shall be

prominently displayed during transport.

Dual display shall not be applicable in relation to the taxi

meter, provided that a dual display price list of applicable fares and a

conversion table is prominently displayed in the taxi.

Any person accepting payment for gaming services, including Gaming services.

gambling, or providing other services relating to gaming, shall have a

the gaming machine.

In the case of fuel stations, dual display shall not be obligatory Fuel stations.

for fuel pumps, provided that, a price list displaying the price per litre

for each grade of fuel both in the Maltese lira and in euro, and the

conversion table, are prominently displayed at the station.

In the case of financial statements which are published in Financial

statements.

summary form in the media, dual display shall apply in relation to totals

of such summaries.

(1) Any person accepting payment in euro both during the Acceptance of

payments in euro.

voluntary dual display period as well as during the dual display period,

shall apply the central parity rate or the conversion rate, whichever is

applicable at the time, without the addition of any charges whatsoever.

(2) Any person, accepting euro notes as a deposit for, or

into, an account of any type which is denominated in euro shall do so

without the addition of any charges.

No person shall increase the price of any good or service, or Pricing.

add on any amount or charge to such price, for the reason that the

monetary changeover is taking place.

(1) Any person who contravenes or fails to comply with Procedures

for non-compliance.

any provision of these regulations or with any terms or conditions under

the FAIR initiative shall be guilty of an administrative offence against

these regulations and shall be liable to an administrative fine and#or

penalty as specified in these regulations and in the Schedule thereto.

(2) Where the Euro Observatory finds that any person is

not complying with any provision of these regulations, or is not

complying with any of the terms or conditions under the FAIR initiative,

the Observatory shall issue a direction in writing –

(a)

indicating the shortcoming or failure to comply<

(b) indicating the remedy to be implemented or action to

be taken in such case<

(c) specifying the time within which such remedy or action

shall need to be taken and<

(d) stating that failure to comply may incur an administrative

penalty.

(3) On receipt of such direction the person to whom the

direction is addressed shall take remedial action and inform the

Observatory that such action has been taken.

(4) If following the direction issued as aforesaid, remedial

action is not taken or is not taken to the satisfaction of the Observatory

within the specified time, the Observatory shall issue a second direction.

(5) The Observatory shall give notice to the Ministry

responsible for Consumer Affairs within three days of the issue of a

second direction.

(6) Upon receipt of the notice referred to in paragraph (5)

above the Ministry responsible for Consumer Affairs shall, within three

days from receipt of notice, issue a final notice to the person to whom

the second direction had been issued, providing a period of not less

than three days within which to conform to the direction issued by the

Euro Observatory.

(7) If, after the three days mentioned in paragraph (6) above

have lapsed from the issuance of the final notice, it results to the Ministry

responsible for Consumer Affairs, that the person to whom the final

notice has been issued, is still not compliant with the direction issued

by the Observatory, it shall impose upon such person an administrative

penalty consisting of>

(i) an administrative fine of not less than three hundred liri

and of not more than one thousand five hundred liri and#or,

(ii) if it considers such a measure necessary, the suspension

of any trading or other licence held by the person concerned for

the purpose of carrying on its trade or business for a period of not

more than fifteen days<

(iii) if it considers it appropriate, a daily administrative fine

of not less than thirty five liri and of not more than two hundred

liri for each day during which the infringement continues.

Provided that, where the infringement consists of any one or

more of the infringements listed in Schedule 1 of these regulations,

the administrative penalties in respect of such infringements

included in the said Schedule shall be applicable.

(1) Any person feeling aggrieved by a decision of the Appeals.

Ministry responsible for Consumer Affairs to impose an administrative

fine or penalty under these regulations may, within a period of twenty

days from the receipt of notification of the fine or penalty appeal such

decision to the Court of Appeal (Inferior Jurisdiction) as constituted in

terms of article 41 (6) of the Code of Organisation and Civil Procedure Cap. 12.

and the provisions of the Code of Organisation and Civil Procedure

applicable to appeals to the said Court shall apply to such appeal.

(2) Upon such appeal the Court of Appeal (Inferior

Jurisdiction) shall consider all the factual and legal aspects of the case

and shall be entitled to annul, revoke, confirm or vary the administrative

fine or penalty appealed from.

The notice of an administrative fine imposed in terms of these Executive Title.

regulations shall, when it has become final and is not subject to appeal,

constitute an executive title for all the effects and purposes of Title VII

of Part 1 of Book Second of the Code of Organisation and Civil

Procedure.

The Euro Observatory and the Ministry responsible for Designated

authorities.

Consumer Affairs shall be the designated authorities in terms of

paragraph (v) of article 3 of the Act to impose and administer any

penalties and fines under the said Act.

The Minister responsible for Finance may at any time Reconsideration.

reconsider the imposition of an administrative fine or penalty under

these regulations and, if he considers it appropriate and after giving

reasons, may decide to reduce or withdraw any such fine or penalty.