Comparative advertising to be allowed in Malta

by Anthony Manduca

As a result of one of the amendments to the 1994 Consumer Affairs Act which is being discussed in Parliament local businesses are to be allowed comparative advertising of their products, The Malta Business Weekly has learnt.

Comparative advertising, which is used extensively in the United States and in certain European countries, allows advertisers to state that a particular product or brand name is better than a competitor's product or brand, which can be named. This is bound to have an effect among the public at large as Maltese consumers are not used to such "negative" advertising.

However whatever claims are made in comparative advertising will have to be factual. "If an advert states that product A is tastier and more wholesome than product B it will have to be true and one must be able to prove this," a consumer affairs specialist told The Malta Business Weekly.

The amendments to the Consumer Affairs Act have arrived at second reading stage in Parliament and the third reading is expected to take place by the end of the year.

In effect, this probably means that by January 2001 Maltese businesses will be able to use comparative advertising to market their products. Other amendments to the Consumer Affairs Act include the extension of the jurisdiction of the Small Claims Tribunal to claims worth up to Lm1500.

At the moment, the Tribunal only deals with claims worth up to Lm500.

To coincide with the amendments to the Consumer Affairs Act, the Council for Consumer Affairs, a semi-autonomous body set up by the government in 1994 to advise on consumer matters, is planning an educational and public relations campaign to increase awareness about consumer rights.

The campaign includes television spots aimed at both the general public and niche sectors of the population including the elderly and the disabled.