Issue link: https://maltatoday.uberflip.com/i/1546315
RESTAURANTS are obliged to inform clients of any service charge before they even place their order, the Malta Compe- tition and Consumer Affairs Authority said. "Consumers should be clearly informed of any applicable ser- vice charge before placing their order, so that they are aware of the total charges that may ap- ply and can make an informed decision," an MCCA spokes- person told MaltaToday. Charges billed as discretion- ary or optional don't get a pass either; those need to be disclosed too, the spokesper- son said. Slipping a charge in without warning "may raise concerns under the provisions relating to unfair commercial practices". The issue was prompted by former Labour minister Rod- erick Galdes, who posted a receipt to Facebook showing a €6.92 service charge quiet- ly added to a €72.80 subtotal, pushing the final bill to €79.72. With no warning, no line on the menu, and no sign until the total landed on the table, Gal- des called it the "coperto" sys- tem. This system is a fixed, per-per- son cover charge long common in Italian restaurants, tradition- ally meant to cover the cost of setting a table—cutlery, glass- es, napkins, sometimes bread. He warned it was creeping into Malta's restaurant scene "little by little". It's a principle with legal teeth behind it. Under the Consum- er Affairs Act (Chapter 378), MCCAA's Enforcement Direc- torate is tasked with ensuring that prices are communicated clearly and unambiguously to consumers, including by dis- playing price lists. More specifically, Regulation 24 of Malta's Consumer Rights Regulations states: "Before the consumer is bound by the con- tract or offer, the trader shall seek the express consent of the consumer to any extra payment in addition to the remunera- tion agreed upon for the main contractual obligation of the trader." Where that consent hasn't been obtained—including where it's simply assumed by default, which the consumer would have to actively reject— the law is clear on the conse- quence: "The consumer shall be entitled to reimbursement of this payment." In practice, that means a service charge sprung on a customer only when the bill arrives, with no mention be- forehand and no chance to agree to it, sits on shaky legal ground. The thought of this system creeping into Malta's restau- rants has raised concern with the MCCAA confirming that it has received a "small number of requests for information" from consumers. Earlier this week, the Associa- tion for Consumer Rights Malta (ACR) called on the authorities to actively monitor the trend. It said restaurants should disclose any service charge on menus, online booking platforms, and advertising. 2 maltatoday | WEDNESDAY • 26 AUGUST 2026 NEWS JULIANA ZAMMIT jzammit@mediatoday.com.mt CONTINUES FROM PAGE 1 The MFSA has already issued a public warning about Distrib- uteX, saying the entity is nei- ther registered nor authorised to provide financial services in Malta. The MFSA said none of the entities operating DistributeX, or similar variations, are reg- istered as companies in Malta. It added that neither the enti- ty nor any individuals, repre- sentatives or promoter groups operating under those names have ever been licensed, au- thorised, regulated or other- wise approved by the authority. The authority also said it had identified features in Distrib- uteX's business model that resemble characteristics com- monly associated with mul- ti-level marketing arrange- ments and may also exhibit elements linked to pyramid schemes. Last Sunday, this newspaper reported on the frustration and betrayal felt by Distribu- teX customers who invested hundreds and, in some cases, thousands of euros into the company. They spoke of how the funds have now been locked and ac- cess to their own money has been restricted. After the company's opera- tions were exposed, members were told to pay a further €300 in what DistributeX claimed were regulatory fees. It claimed the amount was to be paid to the MFSA – a claim the regula- tor has strongly denied. After concerns were raised by members in group chats administered by DistributeX team leaders, those raising the said complaints were first mut- ed, and eventually kicked out. Police confirm joint investigation into obscure crypto marketing company DistributeX The DistributeX outlet in Hamrun inviting potential members to 'own your own digital assets' (Photo: James Bianchi/ MaltaToday Restaurants obliged to inform clients of service charge beforehand