Melita faces MCA directive over service contract termination

The Malta Communications Authority publishes directive requiring Melita to comply with legal obligations regarding early termination charges.

The Malta Communications Authority MCA has published a directive requiring Melita plc to comply with the legal obligations regarding early termination charges which are being imposed on subscribers of electronic communications services - mobile and fixed telephony, Internet and TV distribution services - who decide to terminate a service after the initial contract period has expired.

Subscribers are entitled to a contract when subscribing to such services. This contract may specify an initial contract period that, by law, cannot exceed 24 months. Should subscribers wish to terminate a service during this initial period, the service provider can charge what are described as 'early termination charges.' It is important to note that these early termination charges cannot be applied when terminating a service under a contract which has been renewed after the initial contract period (which cannot exceed 24 months) had expired.

"The MCA is aware of a number of instances where early termination charges were being applied by Melita plc to those subscribers who terminated services after a renewal of contract had taken place and after the initial 24 month-period had elapsed," the authority said in a statement. 

MCA has ordered Melita to desist, with immediate effect, from such practices.  

"Moreover, Melita is also being required to refund any early termination charges, upon justified requests by subscribers, to those who terminated their service after a renewal of contract had taken place and after which the initial 24 month-period had elapsed. Such subscribers are encouraged to contact Melita plc directly."

Visit www.mca.org.mt to view Directive.