Resolving consumer disputes out of court
Occasionally, consumers encounter problems with products or services they would have bought. In most cases, these issues are resolved amicably with the traders concerned. However, situations may arise where the trader declines the consumers’ request for a remedy, or there is disagreement over the type of solution consumers should be provided to resolve the dispute.
In situations where consumers have an unresolved dispute with a trader, they can seek the assistance of the Office for Consumer Affairs. This office offers two primary forms of resolution.
The first is through a conciliation process, which starts when consumers register with the MCCAA a formal complaint against a trader. In this case, a MCCAA complaint officer liaises with the trader in an effort to reach a mutually agreeable solution. Should this conciliation process prove unsuccessful, then consumers have the option to escalate their claim to the Consumer Claims Tribunal.
“To initiate the ADR, both the consumer and the trader must mutually consent to resolving their dispute through the process
Another avenue for consumer redress is through alternative dispute resolution (ADR). This is an out-of-court redress mechanism that assists the two conflicting parties to come to an understanding with the help of an impartial third party.
Two primary benefits of ADR are its cost-effectiveness and efficiency. Unlike traditional court cases, which can entail prolonged legal proceedings, numerous hearings and significant legal expenses, ADR prioritises effective conflict resolution at a very low cost or no cost at all. Moreover, the ADR process allows the conflicting parties the opportunity to actively participate in shaping the terms of their settlement through open dialogue.
ADR redress mechanisms are available to all EU consumers, as each member country hosts registered ADR entities. In Malta, the Office for Consumer Affairs’ Complaints and Conciliation Directorate serves as Malta’s residual ADR entity. This ensures that consumers retain the right to pursue outof-court settlements regardless the nature of the purchase and where the purchase was made.
To initiate the ADR, both the consumer and the trader must mutually consent to resolving their dispute through the process. However, either party retains the option to withdraw from the ADR procedure at any point and for any reason. Upon reaching an amicable agreement, the resolution is formalised through a private writing.
Regarding disputes arising from online purchases, consumers have access to the online dispute resolution (ODR) platform, which connects all registered national ADR entities across the EU. Available in all official EU languages, this platform acts as a centralised hub for consumers and traders seeking resolution for disputes stemming from online transactions, regardless of where the sales contract was formed. Moreover, the ODR platform is applicable to domestic online purchases as well.
Consumers can register complaints directly to the trader through the ODR platform via the ADR entity managing the dispute. Local consumers requiring assistance in submitting a complaint through the ODR platform can reach out to the European Consumer Centre Malta at https://eccnetmalta.gov.mt/.
ADR presents a variety of advantages, rendering it an attractive avenue for redress for both consumers and traders. Not only is it cost- and time-efficient, but it also promotes a cooperative method of dispute resolution.
More information on the ADR mechanism may be found on the ADR website https://adr. mccaa.org.mt/ or by sending an e-mail to adr@mccaa.org.mt.
Odette Vella is director, Information and Research Directorate, MCCAA.
WWW.MCCAA.ORG.MT ODETTE.VELLA@MCCAA.ORG.MT