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CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

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Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

SUBSIDIARY LEGISLATION 378.18

CONSUMER ALTERNATIVE DISPUTE

RESOLUTION (GENERAL) REGULATIONS

20th November, 2015 *

LEGAL NOTICE 374 of 2015, as amended by Act XVI of 2019.

PART I

PRELIMINARY

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) The title of these regulations is the Consumer

Alternative Dispute Resolution (ADR) (General) Regulations.

(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 am ending Regulation (EC) No 2006/20 04 and

Directive 2009/22/EC.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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;

"Civil Court" means the Civil Court (Commercial Section)

established by article 3 of the Civil Court (Establishment of Sections)

Order;

"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;

*see regulation 1(3) of these Regulations, as originally promulgated.

"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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

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

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

ADR entities shall

(a) maintain an up-to-date website which provides the

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; and

(f)

take all the necessary measures to ensure that the

processing of personal data complies with national

legislation on the protection of personal data.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) An ADR entity may, with the prior written consent of

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

refuse to deal with a given dispute on the grounds that

(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

tribunal;

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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

CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL)

regulation 19(2)(g).

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) 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

information on

(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

conducted;

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

The Council shall ensure that ADR procedures are

e ff ec t i v e a n d t h a t t h e sa i d p ro c e d u r e s f u l f i l t h e f o l l o w i n g

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

CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL)

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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

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

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

are not subsequently prevented from initiating judicial proceedings

in 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

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) A trader shall inform consumers about the ADR entity

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

such an entity to resolve disputes with consumers

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

t h e t r a d e r, t h e t r a d e r s h a l l p r o v i d e t h e c o n s u m e r w i t h t h e

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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

The European Consumer Centre Malta shall be responsible

for assisting consumers to access ADR entities operating in another

Member State which are competent to deal with their cross-border

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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) 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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(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

legislation.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) An entity which wishes to act as an ADR entity in

accordance with these regulations shall notify the Council with the

following

(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

CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL)

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

received;

(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); and

(h) an assessment of the effectiveness of the ADR

procedure offered by the entity and of possible ways of

improving its performance.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) 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

n otified t o it and that fulfil the co ndit ions set o ut i n th ese

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 procedure;

(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.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

Articles 43D, 43E and 43F of the Act and Part IIA of the

Act shall apply to investigations by the Council with regard to

compliance with the provisions of these regulations, and to any

subsequent judicial proceedings instituted by the Council before the

Civil Court.

Laws of Malta — Subsidiary Legislation 378.18 — CONSUMER ALTERNATIVE DISPUTE RESOLUTION (GENERAL) REGULATIONS

(1) Subject to the provisions of the Act regarding

judicial proceedings instituted by the Council following its prima facie

finding of infringements, the Civil Court shall impose penalties of not

less than five hundred euro (€500) and not more than ten thousand

euro (€10,000) on any person who fails to comply with any of the

provisions of these regulations

Provided that, the Civil Court may also impose 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 or measures issued by the Civil Court.

(2) Any person who feels aggrieved by a judgement, order,

penalty or measure issued by the Civil Court, may appeal before the

Court of Appeal, on any point of law and, or of fact, by means of an

application filed in the registry of the Court of Appeal within twenty

days from the date of the judgment of the Civil Court

Provided that the Court of Appeal shall appoint the case for

hearing by not later than six months from the judgement of the Civil

Court.

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