Consumer contracts – what should they include?

The Malta Communciations Authority (MCA) has issued a consultation paper in order to receive feedback from stakeholders and other interested parties, including consumers, on a number of issues on the provision of contracts to subscribers of fixed and mobile telephony services, Internet and TV distribution services.

The consultation addresses how agreements between service providers and consumers should be concluded as well as what information should be included in the final contract.

"The feedback received as a result of this consultation process will be taken into consideration when drafting a final decision on the subject," MCA chairman Philip Micallef said.

"This decision will expand on the relevant provisions at law and provide additional clarifications where necessary. It will also include additional transparency rules related to contracts and terms and conditions

"More importantly however, this decision will further enhance consumer protection with regard to the information service providers are expected to include in service contracts and how service providers should make these contracts available to their respective customers," Micallef said.

The MCA is proposing that:

1.     All contracts are available on the service providers' website and in all retail outlets;

2.     Copies of these contracts are to be made available in hard copy format, free of charge, upon request by prospective subscribers;

3.     When concluding a contract, (whether this is done in a physical or in an electronic format), the subscribers' acceptance must be clearly visible and the contract must include all the clauses constituting the terms and conditions;

4.     In the case of television distribution services, when a service provider is aware, a priori, of any expiry dates after which the re/transmission of content, cannot be guaranteed, that undertaking must make available information pertaining to such limitations;

5.     Contracts must include the maximum time for initial connection and disconnection, specifying that if the timeframe for initial connection is exceeded and service not installed, the subscriber may exit the contract without incurring penalties;

6.     The contract must specify that subscribers should not be liable to pay for services after the disconnection advance notice lapses (given that subscribers adhere to the disconnection process established in the contract);

7.     In the case of internet services, the contract must provide information on the subscribers right to request, free of charge, email mobility services for a maximum period of 1 year;

8.     Duration of the contract, as well as any applicable early termination fees, are written in bold and in a font size which is 20% larger than the other clauses in the contract of service.

9.     Contracts must provide information on how to settle disputes;

10.  Contracts must provide all details pertaining to prices, charges and tariffs.

Interested parties are encouraged to submit their comments by no later than Friday, 30th March 2012. The general public may contact the Authority on 21 336 840 for further clarifications on the subject.

A copy of this consulation document can be downloaded from the MCA's website at www.mca.org.mt.