The recently enacted Malta Collective Proceedings Act is an innovative piece of legislation that seeks to pave the way for collective proceedings in Malta.
Collective proceedings are proceedings brought by a class representative on behalf of persons whose claims concern common issues, which need not necessarily be identical. The forms of redress contemplated in the case of collective proceedings are manifested in the cessation of an infringement; the rectification of the consequences resulting from an infringement; and compensation for the harm suffered by the class members.
A persistent problem which has, in the past, undermined effective consumer redress in Malta is that many consumers decide not to pursue their claims because the amounts are relatively minor and disproportionate to the effort and cost involved in obtaining a compensation judgement. By and large, this has been addressed by introducing the Consumer Claims Tribunal. Yet, this has not addressed situations where consumers, having similar claims would wish to make a collective action to seek redress, thereby reducing bureaucracy arising through instituting separate lawsuits and decreasing costs.
Upon its entry into force the Malta Collective Proceedings Act will limitedly apply to issues within the remit of the:
- Competition Act, and Articles 101 or 102 of the Treaty on the Functioning of the European Union (rules applying to undertakings);
- Consumer Affairs Act; and
- Product Safety Act
Although the Malta Collective Proceedings Act will be somewhat limited in scope upon its implementation, the fundamental nature of this enactment is not to be underestimated. It paves the way to further changes in legislation whereby such collective proceedings would become available other significant areas of local legislation in the future, hence presenting extensive potential in the interest of the proper execution of justice.
