23 - 29 August 2001

New distance selling regulations to protect the consumer

by Cynthia Busuttil

Consumers now have the right to cancel any distance selling contract within 15 days of making an order, without giving any reason for their decision and without incurring a penalty.
The new Distance Selling Regulations, which were passed last Friday, were “enacted to protect the consumer and give him the right to all information regarding the sale, and also the right to cancel the contract,” Economic
Services Minister George Hyzler said yesterday.
The minister said the law, which will come into force next week, required the necessary information to be provided in a clear and comprehensive manner and in good time before the conclusion of a distance contract.
This information includes: the full name of the trader and the address of the place of trade; a description of the characteristics of the goods or services quoting their price and any taxes or charges that may be due; delivery costs; and any arrangements for payment, delivery or performance.
In addition, the new regulations include: the obligation of the trader to effect delivery within 30 days from when the order is made; the restrictions on the use of certain means of distance communication to solicit custom, such as fax machines; the nullity of any distance contracts made with minors or interdicted or incapacitated persons; and the rights of a consumer who receives unsolicited goods or services.
The minister said that under these new regulations, the consumer may cancel the contract within 15 days without incurring any penalty and without needing to give a reason for doing so. If the customer decides to stop the contract, the trader is bound under the regulations to reimburse any sum paid within 30 days. The only charge the consumer may be required to pay is the direct cost of returning the goods, he said.
Dr Hyzler said the cases which can be resolved are those cases which fall under Maltese jurisdiction. This, he said, might not include Internet buying as this was still very difficult to regulate. The same applies to catalogue buying, the minister added, explaining that if the company was abroad there would be a problem of jurisdiction.
For his part, Consumer Competition Division director Marcel Pizzuto said there were not many complaints regarding distance selling at present.