Consumer Alternative Dispute Resolution

L.N. 374 of 2015

CONSUMER AFFAIRS ACT

(CAP. 378)

Consumer Alternative Dispute Resolution

(General) Regulations, 2015

IN exercise of the powers conferred upon him by articles 7 and

43G of the Consumer Affairs Act, the Minister for Social Dialogue,

Consumer Affairs and Civil Liberties, after consultation with the

Consumer Affairs Council, has made the following regulations:-

PART I

Preliminary

(1)

The title of these regulations is the Consumer

Alternative Dispute Resolution (ADR) (General) Regulations, 2015.

(2) The purpose of these regulations is to implement Directive

2013/11/EU of the European Parliament and of the Council of the 21

May 2013 on alternative dispute resolution for consumer disputes and

amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC.

(3) These regulations shall come into force on the 20th

November, 2015.

(1)

Any reference in these regulations to the "Act" is a

reference to the Consumer Affairs Act, and the provisions of articles

2 and 43A of the said Act shall apply to these regulations provided

that the definitions contained in sub-regulation (2) shall in all

instances for the purposes of these regulations prevail.

(2) In these regulations, unless the context otherwise requires -

"ADR" means alternative dispute resolution;

"ADR entity" means any entity, however named or referred to,

which is established on a durable basis and offers the resolution of a

dispute through an ADR procedure and that is listed in accordance

with regulation 20;

"ADR procedure" means a procedure, as referred to in

regulation 3, which complies with the requirements set out under

these regulations and is carried out by an ADR entity;

"Council" means the Consumer Affairs Council established

under Part II of the Consumer Affairs Act;

"cross-border dispute" means a contractual dispute arising from

a sales or services contract where, at the time the consumer orders the

goods or services, the consumer is resident in a Member State other

than the Member State in which the trader is established;

"domestic dispute" means a contractual dispute arising from a

sales or service contract where, at the time the consumer orders the

goods or services, the consumer is resident in the same Member State

as that in which the trader is established;

"Directive on consumer ADR" means Directive 2013/11/EU of

the European Parliament and of the Council of the 21 May 2013 on

alternative dispute resolution for consumer disputes and amending

Regulation (EC) No 2006/2004 and Directive 2009/22/EC;

"European Consumer Centre Malta" or "ECC Malta" means the

European Consumer Centre in Malta which operates as part of the

European Consumer Centre network of the European Union; and

"trader" means any natural person or any legal person,

irrespective of whether privately or publicly owned, who is acting,

including through any other person acting in his name or on his

behalf, for purposes relating to his trade, business, craft or profession.

(3) A trader is established

(a)

if the trader is a natural person where he has his

place of business; and

(b)

if the trader is a company or other legal person or

association of natural or legal persons, where it has its statutory

seat, central administration or place of business, including a

branch, agency or any other establishment.

(4) An ADR entity is established

(a)

if it is operated by a natural person, at the place

where it carries out ADR activities; or

(b)

if the entity is operated by a legal person or

association of natural or legal persons, at the place where that

legal person or association of natural or legal persons carries out

ADR activities or has its statutory seat; or

(c)

if it is operated by an authority or other public

body, at the place where the authority or other public body has

its seat.

(1)

These regulations shall apply to procedures for the

out-of-court resolution of domestic and cross-border disputes

concerning contractual obligations resulting from sales contracts or

service contracts between a trader established in the European Union

and a consumer resident in the European Union through the

intervention of an ADR entity which proposes or imposes a solution

or brings the parties together with the aim of facilitating an amicable

solution.

(2) These regulations shall not apply to

(a)

procedures before dispute resolution entities where

the natural persons in charge of dispute resolution are employed

or remunerated exclusively by the individual trader;

(b)

procedures before consumer complaint-handling

systems operated by the trader;

(c)

non-economic services of general interest;

(d)

disputes between traders;

(e)

direct negotiation between the consumer and the

trader;

(f)

attempts made by a judge or a magistrate to settle a

dispute in the course of a judicial proceeding concerning that

dispute;

(g)

procedures initiated by a trader against a consumer;

(h)

health services provided by health professionals to

patients to assess, maintain or restore their state of health,

including the prescription, dispensation and provision of

medicinal products and medical devices; and

(i)

public providers of further or higher education.

(3) Nothing in these regulations shall be interpreted as

preventing any person from exercising the right of access to the

judicial system.

Unless stated otherwise in these regulations, if any

provision of these regulations conflicts with a provision laid down in

any other national law that relates to out-of-court redress procedures

initiated by a consumer against a trader, the provisions of these

regulations shall prevail.

PART II

Access to and requirements applicable to ADR entities

and ADR procedures

ADR entities shall

requirements

onerous on

(a)

maintain an up-to-date website which provides the

ADR entities.

parties with easy access to information concerning the ADR

procedure, and which enables consumers to submit a complaint

and the requisite supporting documents online;

(b)

provide the parties, at their request, with the

information referred to in paragraph (a) on a durable medium;

(c)

where applicable, enable the consumer to submit a

complaint offline;

(d)

enable the exchange of information between the

parties by electronic means or, if applicable, by post;

(e)

accept both domestic and cross-border disputes,

including disputes covered by Regulation (EU) No 524/2013;

(f)

take all the necessary measures to ensure that the

processing of personal data complies with national legislation

on the protection of personal data.

An ADR entity may, with the prior written consent Grounds on

of the Council, maintain or introduce procedural rules that allow it to which

entity may

refuse to deal with a given dispute on the grounds that

refuse to deal

with a given

dispute.

(a)

the consumer did not attempt to contact the trader

concerned in order to discuss his complaint and seek, as a first

step, to resolve the matters directly with the trader;

(b)

the dispute is frivolous or vexatious;

(c)

the dispute is being or has previously been

considered by another ADR entity or by a competent court or

(d)

the value of the claim falls below or above a pre-

specified monetary threshold;

(e)

the consumer has not submitted the complaint to

the ADR entity within a pre-specified time limit, which shall not

be set at less than one year from the date upon which the

consumer submitted the complaint to the trader; and

(f)

dealing with such a type of dispute would

otherwise seriously impair the effective operation of the ADR

entity

Provided that the Council shall determine whether to give

its consent or not within seven working days from the receipt of a

request from the ADR entity. In doing so, the Council shall in writing

inform the ADR entity concerned of the reasons for its decision.

(2) Subject to the provisions of sub-regulation (1) where, in

accordance with its procedural rules, an ADR entity is unable to

consider a dispute that has been submitted to it, that ADR entity shall

provide all the parties to the dispute with a reasoned written

explanation of the grounds for not considering the dispute within

three weeks of receiving the complaint file

Provided that such procedural rules shall not significantly

impair consumers’ access to ADR procedures, including in the case

of cross-border disputes.

(3) Where in accordance with sub-regulation (1)(d), an ADR

entity is permitted to establish pre-specified monetary thresholds in

order to limit access to its ADR procedures, those thresholds shall not

be set a level at which they significantly impair the consumers’ access

to complaint handling by the aforesaid ADR entity.

(1)

Entità tal-ADR tista’, bil-kunsens tal-Kunsill Raġunijiet li

il-quddiem u bil-miktub, iżżomm jew iddaħħal regoli proċedurali li bihom

tal-ADR tista’

jżommuha milli taċċetta xi tilwima partikolari abbażi li

ma taċċettax li

tieħu ħsieb xi

tilwima

(a)

il-konsumatur ma ppruvax jikkuntattja lin- partikolari.

negozjant ikkonċernat sabiex jiddiskuti l-ilment tiegħu u jfittex,

bħala l-ewwel pass, li jsolvi l-kwistjoni direttament man-

negozjant;

(b)

it-tilwima tkun frivola jew vessatorja;

(ċ)

it-tilwima hija jew diġà tkun ġiet ikkunsidrata minn

entità oħra tal-ADR jew minn qorti jew tribunal kompetenti;

(d)

il-valur tat-talba huwa inqas jew aktar minn limitu

monetarju speċifikat minn qabel;

(e)

il-konsumatur ma ressaqx l-ilment lill-entità

tal-ADR fil-limitu ta’ żmien speċifikat minn qabel, li

m’għandux ikun inqas minn sena mid-data meta l-konsumatur

ressaq l-ilment lin-negozjant; u

(f)

it-trattament ta’ din it-tip ta’ tilwima jista’ jfixkel

serjament l-operazzjoni effettiva tal-entità tal-ADR

Iżda l-Kunsill għandu jiddeċiedi jekk jagħtix il-kunsens

tiegħu jew le fi żmien sebat ijiem tax-xogħol minn meta jkun irċieva

t-talba mill-entità tal-ADR. Meta jagħmel dan, il-Kunsill għandu

jgħarraf lill-entità ADR ikkonċernata bil-miktub bir-raġunijiet tad-

deċiżjoni tiegħu.

(2) Bla ħsara għad-dispożizzjonijiet tas-subregolament (1),

meta entità tal-ADR, abbażi tar-regoli proċedurali tagħha, ma tkunx

tista’ tikkunsidra tilwima li tkun ġiet mibgħuta lilha, dik l-entità

tal-ADR għandha tagħti lill-partijiet fit-tilwima spjegazzjoni

bil-miktub tar-raġunijiet li għalihom ma tkunx ikkunsidrat it-tilwima

fi żmien tliet ġimgħat minn meta tkun irċeviet il-fajl tat-tilwima

Iżda dawk ir-regoli proċedurali ma għandhomx ifixklu

b’mod sinifikanti l-aċċess tal-konsumaturi għal proċeduri tal-ADR,

kif ukoll meta jkun hemm tilwim transkonfini.

(3) Meta, skont id-dispożizzjonijiet tas-subregolament (1)(d),

entità tal-ADR ikollha permess li tistabbilixxi limiti monetarji

speċifikati minn qabel sabiex ikun limitat l-aċċess għall-proċeduri

tal-ADR tagħha, dawk il-limiti ma għandhomx ikunu stabbiliti

f’livell fejn ifixklu b’mod sinifikanti l-aċċess tal-konsumaturi

għall-immaniġġjar tal-ilmenti minn dik l-entità tal-ADR.

(1)

A natural person in charge of ADR shall

(a)

possess the necessary knowledge and skills in the

field of alternative or judicial resolution of consumer disputes,

as well as a general understanding of law;

(b)

be appointed for a term of office of sufficient

duration to ensure the independence of his actions, and shall not

be liable to be relieved from his duties without just cause;

(c)

not be subject to any instructions from either party

or their representatives;

(d)

be remunerated in a way that is not linked to the

outcome of the procedure; and

(e)

without undue delay disclose to the ADR entity any

circumstances that may, or may be seen to, affect his

independence and impartiality or give rise to a conflict of

interest with either party to the dispute he is asked to resolve.

The obligation to disclose such circumstances shall be a

continuing obligation throughout the ADR procedure. It shall

not however apply where the ADR entity comprises only one

natural person

Provided that an ADR entity shall in such circumstances

have in place procedures to ensure that

(i)

the natural person concerned is replaced by another

natural person who shall be entrusted with conducting the ADR

procedure; or, failing that,

(ii)

the natural person concerned refrains from

conducting the ADR procedure and, where possible, the ADR

entity proposes to the parties to submit the dispute to another

ADR entity which is competent to deal with the dispute; or,

failing that,

(iii)

the circumstances are disclosed to the parties and

the natural person concerned is allowed to continue to conduct

the ADR procedure only if the parties have not objected after

they have been informed of the circumstances and their right to

object

Provided further that the provisions of sub-regulation

(1)(e) shall be without prejudice to the provisions of regulation

10(2)(a).

(2) Where the persons responsible for the ADR form part of a

collegial body, the entity concerned shall ensure that there is an equal

number of representatives of consumers’ interests and of

representatives of traders’ interests in that body.

(3) Where the persons responsible for the ADR are employed

or remunerated exclusively by a professional organisation or a

business association of which the trader is a member, the ADR entity

concerned shall ensure that, in addition to the general requirements

set out in sub-regulations (1) and (2), they have a separate and

dedicated budget at their disposal which is sufficient to fulfil their

tasks

Provided that this sub-regulation shall not apply where the

persons responsible for the ADR form part of a collegial body

composed of an equal number of representatives of the professional

organisation or business association by which they are employed or

remunerated, and of consumer organisations.

(4) For the purposes of sub-regulation (1)(a), the Council shall

actively encourage and assist ADR entities to provide training for

natural persons in charge of ADR

Provided that where such training is given, the Council

shall monitor the training schemes established by ADR entities on the

basis of information communicated to it in accordance with

regulation 19(2)(g).

An ADR entity shall make publicly available on its

website, on a durable medium upon request, and by any other means

it may consider appropriate, clear and easily understandable

(a)

its contact details, including postal address and e-

mail address;

(b)

the fact that it is listed in accordance with

regulation 20(2);

(c)

the natural persons in charge of its ADR, the

method of their appointment and the length of their mandate;

(d)

the expertise, impartiality and independence of the

persons in charge of ADR;

(e)

its membership in networks of ADR entities

facilitating cross-border dispute resolution, if applicable;

(f)

the types of disputes it is competent to deal with,

including any threshold if applicable;

(g)

the procedural rules governing the resolution of a

dispute and the grounds on which it may refuse to deal with a

given dispute in accordance with regulation 6(1);

(h)

the languages in which complaints can be

submitted to the ADR entity and in which the ADR procedure is

(i)

the types of rules the ADR entity may use as a

basis for the dispute resolution (for example legal provisions,

considerations of equity, codes of conduct);

(j)

any preliminary requirements the parties may have

to meet before an ADR procedure can be instituted, including

the requirement that an attempt be made by the consumer to

resolve the matter directly with the trader;

(k)

whether or not the parties can withdraw from the

procedure;

(l)

the costs, if any, to be borne by the parties,

including any rules on awarding costs at the end of the

procedure;

(m)

the average length of the ADR procedure;

(n)

the legal effect of the outcome of the ADR

procedure, including the penalties for non-compliance in the

case of a decision having binding effect on the parties, if

applicable; and

(o)

the enforceability of the ADR decision, if relevant

Provided that the Council may from time to time require

ADR entities to carry such information on such other means as it may

consider appropriate.

(2) ADR entities shall make publicly available on their

websites, on a durable medium upon request, and by any other means

they consider appropriate, annual activity reports, which reports shall

include the following information relating to both domestic and

cross-border disputes

(a)

the number of disputes received and the types of

complaints to which they related;

(b)

any systematic or significant problems that occur

frequently and lead to disputes between consumers and traders.

Such information may be accompanied by recommendations as

to how such problems can be avoided or resolved in future, in

order to raise traders’ standards and to facilitate the exchange of

information and best practices;

(c)

the rate of disputes the ADR entity has refused to

deal with and the percentage share of the types of grounds for

such refusal as referred to in regulation 6(1);

(d)

the percentage share of ADR procedures which

were discontinued and, if known, the reasons for their

discontinuation;

(e)

the average time taken to resolve disputes;

(f)

the rate of compliance, if known, with the

outcomes of the ADR procedures; and

(g)

cooperation of ADR entities within networks of

ADR entities which facilitate the resolution of cross-border

disputes, if applicable.

(1)

Entità tal-ADR għandha tipprovdi lill-pubbliku fuq Trasparenza.

is-sit elettroniku tagħha, fuq mezz li jibqa’ tajjeb għal ħafna żmien

meta tiġi mitluba għal dan, u b’kull mezz ieħor li tista’ tqis xieraq,

informazzjoni ċara u li tista’ tinftiehem faċilment dwar

(a)

id-dettalji ta’ kuntatt tagħha, li jinkludi l-indirizz

postali u dak elettroniku;

(b)

il-fatt li hija elenkata skont id-dispożizzjonijiet

tar-regolament 20(2);

(ċ)

il-persuni responsabbli għall-ADR tagħha,

il-metodu tal-ħatra tagħhom jew tagħhom u t-tul tal-mandat

tagħhom;

(d)

il-ħila, l-imparzjalità u l-indipendenza tal-persuni

responsabbli mill-ADR;

(e)

is-sħubija tagħha ġewwa gruppi ta’ entitajiet

tal-ADR imsenslin ma’ xulxin li jiffaċilitaw is-soluzzjoni

għat-tilwim transkonfini, jekk ikun applikabbli;

(f)

it-tipi ta’ tilwim li hija kompetenti tieħu ħsieb, kif

ukoll kull limitu jekk applikabbli;

(g)

ir-regoli proċedurali li jirregolaw is-soluzzjoni ta’

tilwima u r-raġunijiet għaliex l-entità tal-ADR tista’ ma

taċċettax li tieħu ħsieb tilwima speċifika abbażi tar-regolament

6(1);

(h)

il-lingwi li bihom jistgħu jitressqu l-ilmenti lill-

entità tal-ADR u li bihom titmexxa l-proċedura tal-ADR;

(i)

it-tipi ta’ regoli li l-entità tal-ADR tista’ tuża bħala

bażi għas-soluzzjoni għat-tilwim (pereżempju dispożizzjonijiet

legali, kunsiderazzjonijiet ta’ ekwità, kodiċi ta’ kondotta);

(j)

kull ħtieġa preliminari li l-partijiet jistgħu jkollhom

jissodisfaw qabel ma tkun tista’ tinbeda proċedura tal-ADR, kif

ukoll il-kundizzjoni li jsir tentattiv mill-konsumatur sabiex

il-kwistjoni tissolva direttament man-negozjant;

(k)

jekk il-partijiet jistgħux jirtiraw mill-proċedura jew

le;

(l)

l-ispejjeż, jekk ikun hemm, li għandhom ibatu

l-partijiet, kif ukoll kull regola dwar id-deċiżjoni tal-ispejjeż fi

tmiem tal-proċedura;

(m)

it-tul medju tal-proċedura tal-ADR;

(n)

l-effett legali tar-riżultat tal-proċedura tal-ADR, li

jinkludi l-penalitajiet għan-nuqqas ta’ konformità fil-każ ta’

deċiżjoni li jkollha effett vinkolanti fuq il-partijiet, jekk

applikabbli; u

(o)

l-eżegwibilità

tad-deċiżjoni

tal-ADR,

jekk

relevanti

Iżda il-Kunsill jista’ minn żmien għal żmien jitlob

lill-entitajiet tal-ADR li jżommu informazzjoni bħal dik b’kull mezz

ieħor li jista’ jikkunsidra xieraq.

(2) Entitajiet tal-ADR għandhom jipprovdu lill-pubbliku fuq

is-siti elettroniċi tagħhom, fuq mezz li jibqa’ tajjeb għal ħafna żmien

meta jiġu mitluba għal dan, u b’kull mezz ieħor li jistgħu jqisu xieraq,

rapporti annwali tal-attivitajiet, liema rapporti għandhom jinkludu

l-informazzjoni li ġejja li għandha x’taqsam kemm ma’ tilwim

domestiku kif ukoll ma’ tilwim transkonfini

(a)

l-għadd ta’ tilwim li rċevew u t-tipi ta’ lmenti li

kellhom x’jaqsmu magħhom;

(b)

kull problema sistematika jew sinifikanti li sseħħ

ta’ spiss u li twassal għal tilwim bejn il-konsumaturi u

n-negozjanti. Informazzjoni bħal din jista’ jkollha magħha

rakkomandazzjonijiet dwar kif problemi bħal dawk jistgħu jiġu

evitati jew solvuti fil-futur, sabiex jgħollu l-istandards

tan-negozjanti u jiffaċilitaw l-iskambju ta’ informazzjoni u

tal-aħjar prattiċi;

(ċ)

ir-rati ta’ tilwim li l-entità tal-ADR ma aċċettatx li

tieħu ħsieb u s-sehem f’perċentwali tat-tipi ta’ raġunijiet għal

rifjuti bħal dawn kif imsemmija fir-regolament 6(1);

(d)

is-sehem f’perċentwali ta’ proċeduri tal-ADR li ma

tkomplewx u, jekk magħrufa, ir-raġunijiet għalfejn ma

tkomplewx;

(e)

iż-żmien medju meħud biex jiġi solvut it-tilwim;

(f)

ir-rata ta’ konformità, jekk tkun magħrufa,

mar-riżultati tal-proċeduri tal-ADR; u

(g)

il-kooperazzjoni bejn entitajiet tal-ADR fi ħdan

grupp ta’ entitajiet tal-ADR imsenslin ma’ xulxin li jiffaċilitaw

is-soluzzjoni tat-tilwim transkonfini, jekk applikabbli.

The Council shall ensure that ADR procedures are

effective and that the said procedures fulfil the following

requirements namely that

(a)

the ADR procedure is available and easily

accessible online and offline to the parties irrespective of where

they are;

(b)

the parties have access to the procedure without

being obliged to retain a lawyer or a legal advisor, but the

procedure shall not deprive the parties of their right to

independent advice or to be represented or assisted by a third

party at any stage of the procedure;

(c)

the ADR procedure is free of charge or available at

a nominal fee for consumers;

(d)

the ADR entity which has received a complaint

notifies the parties to the dispute as soon as it has received all

the documents containing the relevant information relating to

the complaint; and

(e)

the outcome of the ADR procedure is made

available within a period of ninety (90) calendar days from the

date on which the ADR entity has received the complete

complaint file

Provided that in the case of highly complex

disputes, the ADR entity in charge may, at its own discretion,

extend the ninety (90) calendar days’ time period, in which

case, the parties shall be informed of any extension of that

period and of the expected length of time that will be needed for

the conclusion of the dispute.

(1)

An ADR entity shall ensure that in ADR

procedures

(a)

the parties have the possibility, within a reasonable

period of time, of expressing their point of view, of being

provided by the ADR entity with the arguments, evidence,

documents and facts put forward by the other party or parties,

any statements made and opinions given by experts, and of

being able to comment on them;

(b)

the parties are informed that they are not obliged to

retain a lawyer or a legal advisor, but they may seek

independent advice or be represented or assisted by a third party

at any stage of the procedure; and

(c)

the parties are notified of the outcome of the ADR

procedure in writing or on a durable medium, and are given a

statement of the grounds on which the outcome is based.

(2) In ADR procedures which aim at resolving the dispute by

proposing a solution, the ADR entity shall ensure that

(a)

the parties have the possibility of withdrawing

from the procedure at any stage if they are dissatisfied with the

performance or the operation of the procedure and in doing so

shall ensure that the parties are informed of such a right before

the procedure commences

Provided that where the ADR procedure requires

that the participation of the trader is mandatory this requirement

shall only apply to the consumer;

(b)

the parties, before agreeing or following a

proposed solution, are informed that

(i) they have the choice as to whether or not to

agree to or follow the proposed solution;

(ii) participation in the procedure does not

preclude the possibility of seeking redress through

proceedings in a competent court or tribunal; and

(iii) the proposed solution may be different from

an outcome determined by a competent court or tribunal

applying legal rules;

(c)

the parties, before agreeing to or following a

proposed solution, are informed of the legal effect of agreeing to

or following such a proposed solution; and

(d)

the parties, before expressing their consent to a

proposed solution or amicable agreement, are allowed a

reasonable period of time to reflect.

(3) Where ADR procedures provide that their outcome

becomes binding on the trader once the consumer has accepted the

proposed solution, sub-regulation (2) shall be read as applicable only

to the consumer.

(1)

An agreement between a consumer and a trader to

submit complaints to an ADR entity is not binding on the consumer if

it was concluded before the dispute has materialised and if it has the

effect of depriving the consumer of his right to bring an action before

the competent courts or tribunals for the settlement of the dispute.

(2) Where the ADR procedure aims at resolving the dispute by

imposing a solution, then in such an instance the solution imposed

may be binding on the parties only if they were informed of its

binding nature in advance and specifically accepted this

Provided that specific acceptance by the trader is not

required if the ADR procedure provides that solutions are binding on

the trader.

(1)

In an ADR procedure which aims at resolving the

dispute by imposing a solution on the consumer in a situation where

there is no conflict of laws

(a)

the solution imposed shall not result in the

consumer being deprived of the protection afforded to him by

the provisions that cannot be derogated from by agreement by

virtue of the law of the Member State where the consumer and

the trader are habitually resident;

(b)

where the law applicable to the sales or service

contract is determined in accordance with the provisions of

Article 6(1) and (2) of Regulation (EC) No 593/2008, the

solution imposed by the ADR entity shall not result in the

consumer being deprived of the protection afforded to him by

the provisions that cannot be derogated from by agreement by

virtue of the law of the Member State in which he is habitually

resident; and

(c)

where the law applicable to the sales or service

contract is determined in accordance with the provisions of

Article 5(1) to (3) of the Rome Convention of 19 June 1980 on

the law applicable to contractual obligations, the solution

imposed by the ADR entity shall not result in the consumer

being deprived of the protection afforded to him by the

mandatory rules of the law of the Member State in which he is

habitually resident.

(2) For the purposes of this regulation "habitual residence"

shall be determined in accordance with Regulation (EC) No 593/

2008.

Parties who, in an attempt to settle a dispute, have recourse Effect of ADR

to an ADR procedure the outcome of which is not binding on them, procedures

limitation and

are not subsequently prevented from initiating judicial proceedings in prescription

periods.

relation to that dispute as a result of the expiry of limitation or

prescription periods as provided for under national law during the

ADR procedure

Provided that this regulation shall be without prejudice to

provisions on limitation or prescription contained in international

agreements to which Malta is a party.

PART III

Information and Cooperation

(1)

A trader shall inform consumers about the ADR Consumer

entity by which he is covered, when he commits to or is obliged to use information

a trader must

such an entity to resolve disputes with consumers

provide.

Provided that such information shall include the website

address of the relevant ADR entity and shall be provided in a clear,

comprehensible and easily accessible way on the trader’s website,

where one exists, and, if applicable, in the general terms and

conditions of sales or service contracts between the trader and the

consumer.

(2) Where a dispute between a consumer and a trader cannot

be settled further to a complaint submitted directly by the consumer

to the trader, the trader shall provide the consumer with the

information referred to in sub-regulation (1) specifying whether he

makes use of the relevant ADR entity to settle the dispute

Provided that such information shall be provided on paper

or on another durable medium.

The European Consumer Centre Malta shall be responsible Assistance by

for assisting consumers to access ADR entities operating in another the

Consumer

Member State which are competent to deal with their cross-border Centre in Malta.

disputes with regard to disputes arising from cross-border sales or

service contracts

Provided that the Minister, after consultation with the

Council, may by notice in the Gazette also require public entities

involved in any aspect of consumer protection to provide such

assistance to consumers in relation to the specific areas of consumer

protection as may fall within their remit.

(1)

ADR entities, the ECC Malta and where

appropriate, any other entities as may be designated in accordance

with regulation 15, shall make publicly available on their websites, by

providing a link to the European Commission’s website, and

whenever possible on a durable medium at their premises, the list of

ADR entities referred to in paragraph 4 of Article 20 of the Directive

on consumer ADR.

(2) The Council shall encourage relevant consumer

organisations and business associations to make publicly available on

their websites, and by any other means they consider appropriate, the

list of ADR entities referred to in paragraph 4 of Article 20 of the

Directive on consumer ADR including the appropriate dissemination

of information on how consumers can access ADR procedures for

resolving disputes covered by these regulations.

(1)

ADR entities shall cooperate with each other in the

resolution of cross-border disputes and shall conduct regular

exchanges of best practices as regards the settlement of both cross-

border and domestic disputes.

(2) Where a network of ADR entities facilitating the

resolution of cross-border disputes exists in a sector-specific area, the

Council shall encourage the ADR entities that deal with disputes in

that area to become members of that network.

(1)

ADR entities and national public authorities

entrusted with the enforcement of any aspect of consumer protection

legislation shall cooperate with each other and exchange information

on practices in specific business sectors about which consumers have

repeatedly lodged complaints

Provided that such information shall include the provision

of technical assessment and information by such national public

authorities to ADR entities where such assessment or information

may be necessary for the handling of individual disputes and is

already available.

(2) Any cooperation and information exchanges given in

accordance with this regulation shall comply with national data

protection legislation.

(3) This regulation shall be without prejudice to provisions on

professional and commercial secrecy which apply to the national

public authorities enforcing consumer protection legislation, and

ADR entities shall be subject to rules of professional secrecy or other

equivalent duties of confidentiality laid down under national

An entity which wishes to act as an ADR entity in Notification of

accordance with these regulations shall notify the Council with the information

entity wishing

to act as an

ADR entity.

(a)

its name, contact details and website address;

(b)

information on its structure and funding including

information on the natural persons in charge of dispute

resolution, their remuneration, term of office and by whom they

are employed;

(c)

its procedural rules;

(d)

its fees, if applicable;

(e)

the average length of the dispute resolution

procedures;

(f)

the language or languages in which complaints can

be submitted and the dispute resolution procedure conducted;

(g)

a statement on the type of disputes covered by the

dispute resolution procedure;

(h)

the grounds on which the dispute resolution entity

may refuse to deal with a given dispute in accordance with the

provisions of regulation 6(1); and

(i)

a reasoned statement on whether the entity

qualifies as an ADR entity falling within the scope of these

regulations and complies with the quality requirements set out

in Part II of these regulations

Provided that in the event of changes to the information

referred to in paragraphs (a) to (h), the ADR entity concerned shall

without undue delay notify those changes to the Council.

(2) An ADR entity shall communicate to the Council every

two years information on

(a)

the number of disputes received and the types of

complaints to which they related;

(b)

the percentage share of ADR procedures which

were discontinued before an outcome was reached;

(c)

the average time taken to resolve the disputes

(d)

the rate of compliance, if known, with the

outcomes of the ADR procedures;

(e)

any systematic or significant problems that occur

frequently and lead to disputes between consumers and traders.

The information communicated in this regard may be

accompanied by recommendations as to how such problems can

be avoided or resolved in future;

(f)

where applicable, an assessment of the

effectiveness of its cooperation within networks of ADR entities

facilitating the resolution of cross-border disputes;

(g)

where applicable, the training provided to natural

persons in charge of ADR in accordance with regulation 7(4);

(h)

an assessment of the effectiveness of the ADR

procedure offered by the entity and of possible ways of

improving its performance.

The Council shall assess, in particular on the basis

of the information it has received in accordance with regulation 19(1),

whether the dispute resolution entities notified to it qualify as ADR

entities falling within the scope of these regulations and comply with

the quality requirements set out in Part II of these regulations.

(2) The Council shall on the basis of the assessment referred to

in sub-regulation (1), list all the ADR entities that have been notified

to it and that fulfil the conditions set out in these regulations, which

list shall include the following

(a)

the name, the contact details and the website

addresses of the ADR entities referred to in this sub-regulation;

(b)

their fees, if applicable;

(c)

the language or languages in which complaints can

be submitted and the ADR procedure conducted;

(d)

the types of disputes covered by the ADR

(e)

the sectors and categories of disputes covered by

each ADR entity;

(f)

the need for the physical presence of the parties or

of their representatives, if applicable, including a statement by

the ADR entity on whether the ADR procedure is or can be

conducted as an oral or a written procedure;

(g)

the binding or non-binding nature of the outcome

of the procedure; and

(h)

the grounds on which the ADR entity may refuse to

deal with a given dispute in accordance with regulation 6(1).

(3) The Council shall notify the list referred to in the sub-

regulation (2) to the European Commission

Provided that if any changes are notified to the Council in

accordance with the proviso to regulation 19(1), that list shall be

updated without undue delay and the relevant information notified to

the European Commission.

(4) If a dispute resolution entity listed as ADR entity under

these regulations no longer complies with the requirements referred

to in sub-regulation (1), the Council shall contact that dispute

resolution entity, stating the requirements the dispute resolution entity

fails to comply with and requesting it to ensure compliance

immediately

Provided that if the dispute resolution entity after a period

of three months still does not fulfil the requirements referred to in

sub-regulation (1), the Council shall then remove the dispute

resolution entity from the list referred to in sub-regulation (2), which

list shall be updated without undue delay and the relevant information

notified to the European Commission by the Council.

(5) By 9 July 2018, and every four years thereafter, the

Council shall publish and send to the European Commission a report

on the development and functioning of ADR entities, which report

shall in particular

(a)

identify best practices of ADR entities;

(b)

point out the shortcomings, supported by statistics,

that hinder the functioning of ADR entities for both domestic

and cross-border disputes, where appropriate; and

(c)

make recommendations on how to improve the

effective and efficient functioning of ADR entities, where

appropriate.

PART IV

Enforcement and sanctions

(1)

Entità li trid taħdem bħala entità tal-ADR skont

dawn ir-regolamenti għandha tavża lill-Kunsill b’dan li ġej

(a)

isimha, id-dettalji ta’ kuntatt u l-indirizz tas-sit

elettroniku tagħha;

(b)

informazzjoni dwar l-istruttura u l-finanzjar tagħha

kif ukoll informazzjoni dwar il-persuni naturali responsabbli

mis-soluzzjoni tat-tilwim, il-ħlas tagħhom, it-tul tal-ħatra

tagħhom u minn min huma mħaddma;

ir-regoli ta’ proċedura tagħha;

(d)

it-tariffi tagħha, jekk applikabbli;

(e)

it-tul

medju

tal-proċeduri

għas-soluzzjoni

(f)

il-lingwa jew il-lingwi li bihom jistgħu jitressqu

l-ilmenti u li bihom titmexxa l-proċedura għas-soluzzjoni

(g)

dikjarazzjoni dwar it-tipi ta’ tilwim li jaqgħu taħt

il-proċedura għas-soluzzjoni tat-tilwim;

(h)

ir-raġunijiet li abbażi tagħhom l-entità tas-

soluzzjoni għat-tilwim tista’ tirrifjuta li tieħu ħsieb tilwima

partikolari skont id-dispożizzjonijiet tar-regolament 6(1); u

(i)

stqarrija motivata dwar jekk l-entità tikkwalifikax

bħala entità tal-ADR li taqa’ fil-kamp ta’ applikazzjoni ta’ dawn

ir-regolamenti u jekk tikkonformax mal-ħtiġiet ta’ kwalità

mniżżla fit-Taqsima II ta’ dawn ir-regolamenti

Iżda jekk ikun hemm tibdil fl-informazzjoni msemmija

fil-paragrafi (a) sa (h), l-entità tal-ADR ikkonċernata għandha tavża

minnufih lill-Kunsill b’dan it-tibdil.

(2) Entità tal-ADR għandha kull sentejn tgħaddi lill-Kunsill

informazzjoni dwar

(a)

l-għadd ta’ tilwim li rċeviet u t-tipi ta’ lmenti li

kellhom x’jaqsmu magħhom;

(b)

is-sehem f’perċentwali ta’ proċeduri tal-ADR li ma

tkomplewx qabel ma waslu għal riżultat;

iż-żmien medju meħud sabiex tinstab soluzzjoni

għat-tilwim li tkun irċeviet;

(d)

ir-rata ta’ konformità, jekk tkun magħrufa,

mar-riżultati tal-proċeduri tal-ADR;

(e)

kull problema sistematika jew sinifikanti li sseħħ

ta’ spiss u li twassal għal tilwim bejn il-konsumaturi u

n-negozjanti. Din l-informazzjoni jista’ jkollha magħha

rakkomandazzjonijiet dwar kif problemi bħal dawn jistgħu jiġu

evitati jew solvuti fil-futur;

(f)

fejn applikabbli, valutazzjoni dwar l-effikaċja

tal-kooperazzjoni tagħha fi ħdan il-gruppi tal-entitajiet tal-ADR

imsenslin ma’ xulxin li jiffaċilitaw is-soluzzjoni għal tilwim

transkonfini;

(g)

fejn applikabbli, it-taħriġ mogħti lil persuni

naturali responsabbli mill-ADR skont ir-regolament 7(4); u

(h)

valutazzjoni tal-effikaċja tal-proċedura tal-ADR

offruta mill-entità u tal-modi li huma possibbli dwar kif tista’

ttejjeb il-prestazzjoni tagħha.

Il-Kunsill għandu jivvaluta, b’mod partikolari

abbażi tal-informazzjoni li jkun irċieva skont ir-regolament 19(1),

jekk l-entitajiet għas-soluzzjoni tat-tilwim avżati lilu jikkwalifikawx

bħala entitajiet tal-ADR li jaqgħu fil-kamp ta’ applikazzjoni ta’ dawn

ir-regolamenti kif ukoll jekk jikkonformawx mal-ħtiġiet ta’ kwalità

mniżżla fit-Taqsima II ta’ dawn ir-regolamenti.

(2) Il-Kunsill għandu jagħmel lista tal-entitajiet tal-ADR

kollha, abbażi tal-valutazzjoni msemmija fis-subregolament (1), li

jkunu ġew avżati lilu u li jissodisfaw il-kundizzjonijiet imniżżla

f’dawn ir-regolamenti, liema lista għandha tinkludi dan li ġej

(a)

l-isem, id-dettalji ta’ kuntatt u l-indirizz tas-sit

tal-entitajiet

tal-ADR

imsemmija

f’dan

is-subregolament;

(b)

it-tariffi tagħhom, jekk applikabbli;

il-lingwa jew il-lingwi li bihom jistgħu jitressqu

l-ilmenti u li bihom titmexxa l-proċedura tal-ADR;

(d)

it-tipi ta’ tilwim li jaqgħu taħt il-proċedura tal-

(e)

is-setturi u l-kategoriji ta’ tilwim li jaqgħu taħt

il-kompetenza ta’ kull entità tal-ADR;

(f)

il-ħtieġa tal-preżenza fiżika tal-partijiet jew

tar-rappreżentanti tagħhom, jekk applikabbli, kif ukoll stqarrija

mill-entità tal-ADR dwar jekk il-proċedura tal-ADR issirx jew

tistax issir bħala proċedura orali jew bil-miktub;

(g)

in-natura vinkolanti

jew

mhux

vinkolanti

tar-riżultat tal-proċedura; u

(h)

ir-raġunijiet li abbażi tagħhom l-entità tal-ADR

tista’ ma taċċettax li tieħu ħsieb tilwima speċifika abbażi

tar-regolament 6(1).

(3) Il-Kunsill

għandu

javża

l-lista

msemmija

fis-subregolament (2) lil Kummissjoni Ewropea

Iżda jekk xi tibdil jiġi avżat lill-Kunsill skont il-proviso

għar-regolament 19(1), dik il-lista għandha tkun aġġornata minnufih

u l-informazzjoni relevanti avżata lill-Kummissjoni Ewropea.

(4) Jekk entità għas-soluzzjoni tat-tilwim imniżżla bħala entità

tal-ADR skont dawn ir-regolamenti ma tibqax tikkonforma

mal-ħtiġiet imsemmija fis-subregolamenti (1), il-Kunsill għandu

jikkuntattja lill-entità għas-soluzzjoni tat-tilwim, jgħarrafha

bil-ħtiġiet li dik l-entità mhux qiegħda tikkonforma magħhom u

jitlobha tiżgura li jkun hemm konformità minnufih

Iżda jekk wara perjodu ta’ tliet xhur l-entità

għas-soluzzjoni tat-tilwim tibqa’ ma tissodisfax il-ħtiġiet msemmija

fis-subregolament (1), il-Kunsill għandu jneħħi lill-entità

għas-soluzzjoni tat-tilwim mil-lista msemmija fis-subregolament (2),

liema lista għandha tiġi aġġornata minnufih u l-informazzjoni

relevanti avżata lill-Kummissjoni Ewropea mill-Kunsill.

(5) Sad-9 ta’ Lulju 2018 u kull erba’ snin wara, il-Kunsill

għandu jippubblika u jibgħat lill-Kummissjoni Ewropea rapport dwar

l-iżvilupp u l-ħidma tal-entitajiet tal-ADR, liema rapport għandu

b’mod partikolari

(a)

jidentifika l-aħjar prattiċi ta’ entitajiet tal-ADR;

(b)

jindika n-nuqqasijiet, imsaħħa bl-istatistika, li

jxekklu l-ħidma tal-entitajiet tal-ADR kemm għal tilwim

domestiku kif ukoll għal dak transkonfini, fejn xieraq; u

(ċ)

jagħmel rakkomandazzjonijiet fuq kif il-ħidma

effettiva u effiċjenti tal-entitajiet tal-ADR tista’ tittejjeb, fejn

xieraq.

TAQSIMA IV

Infurzar u sanzjonijiet

(1)

Unless provided otherwise in these regulations the

Council, before proceeding to issue any regulatory measure including

the imposition of any administrative penalty, shall write to the person

concerned warning that person of the measure that may be taken and

the specific reason why it may be taken, requiring him to cease or

rectify his acts or omissions and, or to make his submissions thereto

within such period, not being less than fifteen days, which period may

be abridged if the Council considers that the continuance of the

infringement impacts negatively the effective exercise by the Council

of its regulatory functions and, or warrants its immediate

intervention

Provided that if the measure is an administrative penalty

the person concerned shall also be informed of the amount of the

penalty being considered

Provided further that when issuing a warning under this

regulation the Council may impose such conditions as it may consider

reasonable in the circumstances.

(2) If the person concerned remedies the infringement within

the period established by the Council, in accordance with sub-

regulation (1), and agrees in writing to abide with any condition that

the Council may impose, the Council may at its discretion desist from

proceeding any further, this without prejudice to any regulatory

measures that may have already been imposed.

(3) If, after the lapse of the period mentioned in sub-regulation

(1), the Council considers that the person concerned has not given any

valid reasons to demonstrate why no measure should be taken against

him, the Council shall notify the person concerned in writing,

specifying the nature of the infringement, stating the measure being

taken, and if the measure is an administrative penalty, stating the

amount of the administrative penalty being imposed.

(4) The notification as referred to in sub-regulation (3) shall,

upon the expiry of the time limit for appeal therefrom upon the

service of a copy thereof by means of a judicial act on the person

indicated in the notice, constitute an executive title for all effects and

the purposes of Title VII of Part I of Book Second of the Code of

Organization and Civil Procedure

Provided that if the person against whom the notice has

been issued, files an appeal before the Appeals Tribunal in

accordance with the applicable provisions of the Act and concurrently

with or before the filing of his appeal requests the Appeals Tribunal to

suspend the effects of the notice, then the Council shall desist from

issuing a judicial act as referred to in this sub-regulation until such

time as the request for suspension has been determined, withdrawn or

otherwise dealt with.

(5) Interest at the rate of eight per cent per annum shall run as

from the date set by the Council for the payment of any

administrative penalty imposed by it in terms of these regulations. In

cases where the Appeals Tribunal or the Court of Appeal, as the case

may be, after having upheld an application to suspend the penalty

pending proceedings, finally decides that the penalty is due, such

penalty shall be due together with any interests accrued thereon as

from the date originally set by the Council for payment including the

period during which the payment of the said penalty was suspended.

(6) The Council shall give its reasons for any decision taken in

accordance with this regulation.

The Council shall ensure compliance with these Sanctions.

regulations and in doing so shall take any such measures in

accordance with its powers at law as it may consider appropriate in

the circumstances, including the imposition of administrative

penalties of not less than five hundred euro (€500) and not exceeding

ten thousand euro (€10,000) and, or administrative penalties of not

less than twenty euro (€20) but not more than one hundred euro

(€100) for each day of non-compliance on any person who fails to

abide with any requirements under these regulations or with any

orders however so described as the Council may issue in accordance

with these regulations.

€1.71