Where do the Maltese ADR institutions fit into the new EU Directive on Alternative Dispute Resolution for consumer disputes?

Abstract

Nowadays, people are buying much more than they were before, and hence more consumer transactions are being concluded. Although we see many advertisements which aim to tantalise consumers into buying goods, not enough information is being offered on what consumers should do when one of their purchases goes wrong. When this case happens, consumers are unsure of what they should do to address the situation. Many are mostly concerned that due to the fact that the value of their claim is relatively low, the courts would not admit their case. However, even if the court would be willing to entertain the case, many consumers are hesitant to file a lawsuit due to the complicated, lengthy and expensive proceedings, which it may entail. Consequently they choose not seek to enforce their rights further. In these cases, the Consumer Affairs Act, (Chap. 378 of the Laws of Malta) is the competent set of laws which regulates consumer transactions and protects the consumer. Moreover, apart from dealing with the substantive rights of consumers, it also aims to guide consumers to enforce them, by directing them to the Maltese consumer ADR systems. In order to ensure that all European consumers have the same opportunity to make use of alternative dispute resolution, the European Parliament enacted Directive 2013/11/EU on Alternative Dispute Resolution for Consumer Disputes. This Directive aims to ensure that all Member States provide quality ADR providers, which are accessible and convenient for consumers. As part of the implementation of this Directive, many Member States had to analyse their current system, and see whether their existing ADR structures met the criteria posed by the Directive. This study aims to do this exercise for the case of Malta, and propose any changes, if necessary to the ADR system in Malta.