Alternative Dispute Resolution

consumer affairs council Alternative Dispute Resolution

Consumer Alternative Dispute Resolution (ADR) (General) Regulations of the Laws of Malta

These Regulations cover out-of-court resolution of domestic and cross-border disputes emanating from sales and service contracts between traders and consumer, both established in the European Union.

ADR (Alternative Dispute Resolution) entities shall:

  • maintain an up-to-date website providing parties easy access to information on the ADR procedures. This should enable consumers to submit complaint and  supporting documents online;
  • At the parties request the ADR should provide the information on a durable medium;
  • Where applicable enable consumer to submit complaint offline;
  • Enable the exchange of information between parties by electronic means or by post;
  • Ensuring that the processing of personal data complies with national legislation on the protection of personal data;

 

An ADR entity may refuse to deal with a dispute with the prior consent of the Council. ADR entities should introduce procedural rules for such refusal.

An ADR entity shall make publicly available on its website, on a durable medium upon request, and by any other means it may consider appropriate, clear and easily understandable information on:

  • its contact details, including postal address and e-mail address
  • the fact that the ADR has notified the Authority it is listed in accordance with regulation 20(2);
  • the natural persons in charge of its ADR, the method of their appointment and the length of their mandate;
  • the expertise, impartiality and independence of the persons in charge of ADR;
  • its membership in networks of ADR entities facilitating cross-border dispute resolution, if applicable;
  • the types of disputes it is competent to deal with, including any threshold if applicable;
  • the procedural rules governing the resolution of a dispute and the grounds on which it may refuse to deal with a given dispute in accordance with the regulations;
  • the languages in which complaints can be submitted to the ADR entity and in which the ADR procedure is conducted;
  • the types of rules the ADR entity may use as a basis for the dispute resolution (for example legal provisions, considerations of equity, codes of conduct);
  • any preliminary requirements the parties may have to meet before an ADR procedure can be instituted, including the requirement that an attempt be made by the consumer to resolve the matter directly with the trader;
  • whether or not the parties can withdraw from the procedure;
  • the costs, if any, to be borne by the parties, including any rules on awarding costs at the end of the procedure;
  • the average length of the ADR procedure;
  • the legal effect of the outcome of the ADR procedure, including the penalties for non-compliance in the case of a decision having binding effect on the parties, if applicable;
  • the enforceability of the ADR decision, if relevant.

 

The Council shall ensure that the ADR procedures are effective and fulfill the following requirements:

  • the ADR procedure is available and easily accessible online and offline to the parties irrespective of where they are;
  • the parties have access to the procedure without being obliged to retain a lawyer or a legal advisor, but the procedure shall not deprive the parties of their right to independent advice or to be represented or assisted by a third party at any stage of the procedure;
  • the ADR procedure is free of charge or available at a nominal fee for consumers;
  • (d) the ADR entity which has received a complaint notifies the parties to the dispute as soon as it has received all the documents containing the relevant information relating to the complaint; and
  • the outcome of the ADR procedure is made available within a period of ninety (90) calendar days from the date on which the ADR entity has received the complete complaint file.

N.B.:  Provided that in the case of highly complex disputes, the ADR entity in charge may, at its own discretion, extend the ninety (90) calendar days’ time period, in which case, the parties shall be informed of any extension of that period and of the expected length of time that will be needed for the conclusion of the dispute.

A natural person presiding an  ADR shall:

  • possess the necessary knowledge and skills in the field of alternative or judicial resolution of consumer disputes, as well as a general understanding of law;
  • be appointed for a term of office of sufficient duration to ensure the independence of his actions, and shall not be liable to be relieved from his duties without just cause;
  • not be subject to any instructions from either party or their representatives;
  • be remunerated in a way that is not linked to the outcome of the procedure.