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Doorstep Contracts Act (Cap. 317) Consolidated

CHAPTER 317

DOORSTEP CONTRACTS ACT

To regulate the activities of door-to-door sellers.

11th February, 1987;
15th March, 1987

ACT VII of 1987, as amended by Acts XXVIII of 1994 and XXVI of 2000; Legal Notice 424 of 2007; and Acts II of 2008, XXIII of 2009 and VI of

2011.

Substituted by: XXVI. 2000.17.

1. The short title of this Act is the Doorstep Contracts Act.

2. In this Act, unless the context otherwise requires -

"business premises" include th e premises or any other place where or from which a trader regularly carries on business activity, and include stalls at fairs and markets;
"consumer" means a person who in transactions covered by this
Act acts otherwise than in a commercial or professional capacity;
"Council" means the Consumer Affairs Council established by the Consumers Affairs Act;
"Dir ector General (Consumer Aff a ir s)" means the Dir e ctor General as appointed by article 16 of the Malta Competition and Consumer Affairs Authority Act;
"doorstep contract" means a contract for the provision or supply of goods or services to a consumer by a door-to-door seller acting either on his own behalf or on behalf of a trader, which contract has been negotiated at the consumer ’s home or place of work or at any other place or premises away from the business premises of the door-to-door seller or of the trader on whose behalf he is acting, including contracts concluded during an excursion organised by the trader away from his business premises, or during a visit by a trader to the consumer ’s home or to that of another consumer, or to the consumer ’s place of work;
"door-to-door seller" means a person who offers the provision or supply of any type of goods or services by means of a doorstep contract, whether the offer is unsolicited by the person to whom it is m ad e , or is solici t ed b y t h e latt er p e rson in response t o any adve rt isem ent , bu t d o es not i n cl ude ven d o r s o f fo od stuffs and drinks who sell their goods from door-to-door;
"go o d s " i n clud e any ar ticle o r th in g, w h ether tangi ble o r intangible, which may form the object of trade;
"Member State" means a State which is a contracting party to the Agreement on the European Economic Area signed at Oporto on the 2nd May, 1992 as amended by the Protocol signed at Brussels on the 17th March, 1993 and as amended by any subsequent acts;
"Minister" means the Minister responsible for consumer affairs;

Short title. Amended by: XXVI. 2000.17.

Interpretation. Amended by: XXVIII. 1994.45; XXVI. 2000.17; XXIII. 2009.45; VI. 2011.169.

Cap. 378. Cap. 510.

Cap. 378.

"prescribe" means prescribed by regulations under this Act;
"s erv i ce s" s h al l hav e th e me anin g assigned to it und er th e
Consumer Affairs Act, but shall exclude contracts of insurance;
Cap. 378. "trader" shall have the meaning assigned to it by the Consumer Affairs Act, and includes any person acting in the name, on behalf or in the interest of a trader or under the trader ’s direction, and further includes a perso n who i s acting in furtherance of a professional activity, and, unless the context otherwise requires, includes also the door-to-door seller.

Application. Amended by: XXVIII.1994.45; XXVI. 2000.17; L.N. 424 of 2007.

3. This Act shall not apply to -

(a) contracts which have been negotiated exclusively at the initiative of the consumer where the contract exclusively concerns the goods or services regarding which the consumer requested the visit of the trader:
Provided that the ordering of catalogues, patterns, samples and similar items, a request by the consumer for a visit or demonstration, and participation in an event organised by the trader, shall not be considered as initiating negotiations;
(b) contracts which have been negotiated solely in writing, not being doorstep contracts;
(c) contracts which are concluded before a court, notary or other person who is under a duty to inform both contracting parties of their rights and obligations;
(d) contracts relating to immovable property or any rights thereto;
(e) contracts under which the overall price payable by the consumer does not exceed forty-six euro and fifty-nine cents (46.59):
Provided that where one or more contracts provide for a continuous supply and the whole value of the contract is or may be made to exceed forty-six euro and fifty-nine cents (46.59), such contract or contracts shall, notwithstanding the value of each individual separate consignment, be deemed to be a contract under which the overall price payable by the consumer exceeds forty-six euro and fifty-nine cents (46.59);
(f) contracts relating to the sale of such goods as the
Minister may prescribe.

Licence to act as itinerant seller. Amended by: XXVI. 2000.17; II. 2008.62.

4. (Deleted by Act XXIII. 2009.46)

4. (1) A person who calls at the home or place of work of a consumer for the purpose of negotiating a doorstep contract or for an incidental or related purpose shall leave that place at the request of the consumer.

(2) Without prejudice to the provisions of Title I of Part VII of the Consumer Affairs Act, any person who fails to leave such home or place of work when so requested shall be guilty of an offence against this Act and shall on conviction be liable to a fine (multa) not exceeding one thousand, one hundred and sixty-four euro and sixty-seven cents (€1,164.67).

A person engaged in door-to-door trading to leave if requested to do so. Added by:

XXVI. 2000.17. Amended by:

L.N. 424 of 2007. Substituted by:

II. 2008.63. Renumbered by: XXIII. 2009.47.

Cap. 378.

5. (Deleted by Act XXIII. 2009.46)

6. (1) No doorstep contract made by or through a door-to- door seller shall be valid unless it is concluded by a private writing which may be cancelled as is provided in article 8.

(2) One copy of the private writing shall be retained by the d oor-to-d oor seller and an oth e r cop y shall be ret a i n ed by the consumer. A cancella tion form shall be attached to the pr iv ate writing retained by the consumer.

Penalty for acting as an itinerant seller without a licence.

Amended by: XXVI. 2000.17; L.N. 424 of 2007.

Sales to be concluded by private writing. Amended by: XXVI. 2000.17.

6A. (1) Every licensed door-to-door seller has to provide to the consumer free of charge, and of his own initiative the following information:

(a) his name, legal status and whether he is operating as a commercial partnership, and what type of commercial partnership, the address of the commercial premises in the Member State in which he is established and details enabling him to be contacted rapidly and communicated with directly and, as the case may be, by electronic means;
(b) if he is registered as a commercial partnership under the Companies Act or under the Commercial Partnerships Ordinance under article 5 of the Companies Act, the number of registration and all information relating to article 6 of the Companies Act;
(c) the particulars of the relevant competent authority issuing the license of a door-to-door seller or the single point of contact;
(d) where the provider exercises an activity which is subject to VAT, the identification number referred to in Article 22(1) of Sixth Council Directive 77/388/EEC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes - Common system of value added tax;
(e) in the case of the regulated professions, any professional body or similar institution with which the door-to-door seller is registered, the professional title

Obligation of the door-to door seller to give all information necessary of his own initiative. Added by:

XXIII. 2009.48.

Cap. 386. Cap. 168.

Information to be given by door-to- door seller on the consumer’s request.

Added by: XXIII. 2009.48.

and the Member State in which that title has been granted;
(f) the general conditions and clauses used by the provider.
(2) In addition to the provisions of sub-article (1), every door- to-door seller duly licensed has to provide free of charge and on his own initiative, to the consumer, the following information:
(a) the existence of contractual clauses, if any, used by the provider concerning the law applicable to the contract and, or the competent courts;
(b) the existence of an after-sales guarantee, if any, not imposed by law;
(c) the price of the service, where a price is pre- determined by the provider for a given type of service;
(d) the main features of the service, if not already apparent from the context.
(3) All information referred to in sub- article (1) according to the provider ’s preference -
(a) has to be easily accessible to the consumer at the place where the service is provided or the contract concluded;
(b) must be easily accessed by the recipient electronically by means of an address supplied by the provider, and;
(c) must appear in any information documents, supplied to the consumer by the door-to-door seller, which set out a detailed description of the service he provides.

6B. (1) Every door-to-door seller at the consumer ’s request has to provide the following additional information:

(a) where the price is not pre-determined by the provider for a given type of service, the price of the service or, if an exact price cannot be given, the method for calculating the price so that it can be checked by the recipient, or a sufficiently detailed estimate;
(b) as regards the regulated professions, a reference to the professional rules applicable in the Member State of establishment and how to access them;
(c) information on the multi-disciplinary activities and partnerships which are directly linked to the service in question and on the measures taken to avoid conflicts of interest. That information shall be included in any information document in which door-to-door sellers give a detailed description of their services;
(d) any codes of conduct to which the provider is subject and the address at which these codes may be consulted by electronic means, specifying the language version available;
(e) where a provider is a member of a trade association or
professional body which provides for recourse to a non-judicial means of dispute settlement, information in this respect. The provider shall specify how to access detailed information on the characteristics of, and conditions for, the use of non-judicial means of dispute settlement.
(2) Any information as required in sub- article (1) is to be made available or communicated in a clear and unambiguous manner, and in good time before conclusion of the doorstep contract.
7. A private writing shall, on pain of nullity, contain - (a) the date when and place where it is signed;
(b) the name and address of the consumer;
(c) the name of the door-to-door seller and the number of his licence;
(d) the permanent address of the place of trade of the door-to-door seller or the person by whom he is employed;
(e) a description of the goods or services to which the contract refers;
(f) the price for which the goods or services were to be supplied, and the terms of payment, including full details regarding interests and any other charges;
(g) the time stipulated for the supply of the goods or services, which time shall in no case exceed sixty days from the date of the private agreement;
(h) a clause printed in clear, bold and highlighted type that the consumer has the right to cancel the private writing in accordance with the provisions of article 8;
(i) such other additional conditions or particulars as the
Council may require from time to time; and
(j) such other conditions as the Minister may from time to time prescribe in order to ensure a proper description of the goods and that no undue pressure is exerted on the consumer.

Contents of private writing.

Amended by: XXVI. 2000.17.

8. (1) A doorstep contract shall not be binding and conclusive if it is cancelled by the consumer as provided in thi s article: provided that cancellation is made within fifteen days from the date of the privat e writi ng, o r wit h in such lon g er period as m a y b e stipulated in the private writing.

(2) Cancellation of a doorstep contract may be made in any manner provided the inten tion is subst antially conveyed by the consumer to the door-to-door seller or to the trader on whose behalf he is acting. Cancellation may be effected by word of mouth, by means of telephone or telefax message, or by the delivery either by hand or by ordinary or registered post at the permanent address of the door-to-door seller or trader of a notice of cancellation form signed by the consumer or by a person duly authorised to represent

Cancellation of doorstep contract. Substituted by: XXVI. 2000.17.

him.
(3) A cancellation form in the form set out in the Schedule may be used by a consumer wishing to cancel a doorstep contract. A copy of such a cancellation form shall in all cases be attached to the c opy of the private agre ement reta ined by the consumer. If the consumer wishes to avail himself of the cancellation form he may sign such form and deliver it to the door-to-door seller or to the trader on whose behalf is acting.
(4) It shall be the obligation of a door-to-door seller who calls on a consumer to forthwith inform him of his status as a door-to- door seller, of the purpose of his call, to properly identify himself, and to properly explain to the consumer his rights of cancellation ari s i ng u nder th is article and o f the p o ssi b ili ty t o use th e cancellation form.

Payment of doorstep contract price.

Amended by: XXVI. 2000.17.

Right of cancellation. Amended by: XXVI. 2000.17.

9. Except for a payment of a deposit not exceeding ten per centum of the price of the goods being the subject of the doorstep contract, which deposit shall not be payable before the expiration of the time within which it may be cancelled in accordance with article 8, the door-to-door seller or the trader on whose behalf the door-to-door seller has concluded the doorstep contract, shall not require the consumer to pay any part of the price before the delivery of the goods, and where the goods are delivered in parts, no payment shall be demanded except as represents the price of the part delivered.

10. (1) Where a doorstep contract has not been cancelled in accordance with article 8, the consumer shall not have a right to cancel the doorstep contract without just cause, unless such right is stipulated in the private writing.

(2) The consumer shall have the right to cancel a doorstep contract for a just cause, or because of the violation by the door-to- door seller of any of the provisions of article 9.

Prohibited clauses.

Amended by:

XXVI. 2000.17.

Burden of proof. Amended by: XXVI. 2000.17.

11. Any clause in the private writing which -

(a) requires the consumer to pay any form of compensation if he exercises his right to cancel the doorstep contract, or
(b) provides that any dispute arising therefrom shall be settled otherwise than by the competent court in Malta, or
(c) purports to remove or reduce any of the rights given to the consumer by any of the provisions of this Act, or to limit or remove the competence of local courts or tribunals,
shall be void.

12. In any dispute as to whether -

(a) a doorstep contract has been negotiated exclusively at the initiative of the consumer, or
(b) a doorstep contract has been negotiated solely in
writing, or
(c) the provisions of this Act have been complied with in the conclusion of the doorstep contract, or
(d) the allegation that the right of cancellation had not been exercised by the consumer within the period established under article 8,
the burden of proof shall lie with the trader.

13. Notwithstanding the provisions of this or any other law, the consumer shall not be barred from bringing an action or pleading a defence under this Act on the ground of a false or incorrect date of conclusion of the private writing or its cancellation, even where su ch falsi ty or inc orrectn ess has b een m ade by him o r w ith h is knowledge and consent.

14. (1) A contract of sale concluded before the coming into force of this Act, being a contract of sale to which the provisions of this Act are applicab le, shall not be enforceable against the consumer unless there has been made the actual delivery of the go ods sold and the payment of the price of the sal e , or, if the b e nefit of payment by instalments has been granted to the consumer, at least twenty-five per cent of the purchase price has been paid:

Provi ded t h at the t r ad er may i n su ch cases recover an y expenses that he may have actually incurred under the contract.
(2) When a consumer wishes to keep in effect a contract which in accorda n c e with the provisi ons of subarticle (1) is not enforceabl e b y the trader, he shall with in on e mo nth fr om the coming into fo rce of this Act conf ir m the same by sign in g and delivering to the trader a declaration confirming the contract, and thereupon such contract shall be enforceable by either party.

False statement by consumer

Sales concluded before the coming into force of this Act.

14A. Any person who fails to comply with the provisions of this Act other than article 4, which failure constitutes an infringement against this Act, shall be liable to an administrative fine imposed by the Director General (Consumer Affairs) in terms of provisions of t he Consumer Affair s Act of n ot l ess t han fou r hu nd re d and sixty-five euro and eighty-seven cents (€465.87) and not exceeding four thousand, six hundred and fifty-eight euro and seventy-five cents (€4,658.75).

14B. The prosecution of an offence or the initiation of administrative proceedings for an infringement of a provision of this Act shall be prescribed by the lapse of three years from the date on w h ic h th e o ffe nce o r i n fri n g e m e nt i s al le ge d t o ha ve b een committed.

15. The Minister may make regulations for better putting into effect any of the provisions of this Act, and without prejudice to the generality of the foregoing may by such regulations prescribe:

(a) the form in which any contract or cancellation or any clause thereof shall be made, whether generally or in respect of any class of goods;

Infringements.

Added by:

II. 2008.64.

Amended by:

XXIII. 2009.49;

VI. 2011.169.

Cap. 378.

Prescription for offences and administrative infringements. Added by:

II. 2008.64.

Power to make regulations. Amended by: XXVI. 2000.17. Substituted by: XXIII. 2009.50.

(b) the means of identification of any door-to-door seller licensed under this Act;
(c) such goods or services that may not be sold by means of a doorstep contract;
(d) any other matter which may be prescribed under this
Act.

Purpose of this

Act.

Added by:

II. 2008.65.

15A. The purpose of this Act is partly to implement the provisions of Council Directive 85/577/EEC of the 20th December,
1985 to protect the consumer in respect of contracts negotiated away from business premises and the respective provisions of this
Act shall be applied and interpreted accordingly.
SCHEDULE Amended by: XXVI. 2000.17.
[Article 8]

Cancellation of Doorstep Contract

To

(Name and address of Trader)

I hereby declare that I am cancelling the doorstep contract for the purchase of

(description of goods)

for the price of
payable
signed between

(Name of door-to-door seller)

on behalf of

(Name of company)

and myself

(Name of consumer)

on

(date or doorstep contract)