Consumer Alternative Dispute Resolution Regulations

By virtue of Legal Notice 56 of 2017, the Legislator has issued Consumer Alternative Dispute Resolution. Alternative dispute resolution (ADR) refers to a variety of processes that help parties resolve disputes without resorting to Court. In this case, the process is seeking to help a consumer solve a dispute s/he has with a trader.

Through this set of regulations, the already existent Complaints and Conciliation Directorate which was earlier established through the Malta Competition and Consumer Affairs Authority Act, shall now also take cognisance 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 and shall intervene to bring the parties together with the aim of facilitating or proposing a solution.

These Regulations establish the jurisdiction of this newly established section of ADR (alternative dispute resolution for consumers) for cross-border disputes within the European Union, that is what dispute may and may not be the subject matter of this ADR, who may lodge a complaint, the duties of the Officers responsible of this ADR, and the process and procedure which shall be undertaken.

It is interesting to note that the parties may choose this ADR on a voluntary basis and in the absence of an agreement to the contrary. Any agreement between a consumer and a trader to submit complaints to the Complaints and Conciliation Directorate 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. This implies that the legislator sought to introduce an additional option to the Consumer in disputes of cross-border nature and in no way limiting the Consumer’s right to resort to court in cases of dispute with a trader.