by David Fabri
ITALY CONSUMER AND COMPETITION LAW: Proceedings against electric vehicle advertising
According to a Reuters Milan report dated 21 February 2025, the Italian competition Authority initiated investigation proceedings against four major electric car manufacturers for alleged deceitful or incorrect advertising of electric cars. (https://www.agcm.it)
The Autorità Garante della Concorrenza e del Mercato (AGCM) enforces the competition and consumer laws in Italy and is responsible to investigate and take action against abuses from market dominance, cartels, and restrictive trade agreements and take-overs. Italian consumer law is largely contained in the Codice del Consumo which was adopted in 2006 further to Legislative Decree no 206/2005.
The recent investigation by the AGCM focuses on the potential misleading information provided to consumers and the lack of transparency regarding electric vehicles regardingvarious matters, including driving range, battery capacity degradation and limitations on standard battery warranties. The companies involved are all well-known: BYD Industria, Italia s.r.l., Stellantis Europe S.p.A., Tesla Italy s.r.l. and Volkswagen Group Italia S.p.A.
During February, their premises were inspected by the Authority, assisted by the Guardia di Finanza in pursuance of this investigation. The four companies are suspected of unfair commercial practices in breach of the Consumer Code, which transposes relevant EU Directives.
In particular, the companies’ websites appear to have displayed generic and at times, contradictory information regarding the driving range, unclear and incomplete information on battery capacity degradation resulting from normal vehicle use, and the terms/limitations applied to the standard battery warranty. The automakers subject to the probe have pledged cooperation in the investigation, which seeks to ensure transparency and protect consumer trust in the growing electric vehicle market.
Stellantis, Volkswagen, BYD, and Tesla all produce a wide range of electric vehicles that have attracted significant consumer interest across Europe. This probe highlights the need for manufacturers to provide more straightforward and detailed information to prevent misleading buyers and maintain trust in the rapidly growing EV industry.(https://www.electrive.com/2025/02/21/italy-accuses-four-ev-makers-of-deceiving-customers/)
The Autorità Garante della Concorrenza e del Mercato is, to some extent, comparable to our MCCAA, which likewise has the responsibility to administer and enforce competition and consumer legislation, adopted at local and EU levels. Like the MCCAA, the AGCM investigates potential unfair commercial practices and false advertising. The latter includes misleading advertising by any means, including by television, newspapers, leaflets, posters, etc. The Codice del Consumo is roughly equivalent to our Consumer Affairs Act.
UK COMPANY LAW
A new study on non-executive directors (NEDs)
My column of 27 August 2023, ‘Rethinking the non-executive director’, had addressed the phenomenon of non-executive directors in Maltese company law and practice and expressed the view that, in some instances, part-time directors were part of the problem rather than thesolution.
Companies encountering corporate governance difficulties are not always best served by theirpart-time non-executive directors. Problems usually related to lack of adequate preparation, interest or attention, incompetence or a lack of knowledge and information needed to add value by their presence on boards. This topic is also discussed in my 2024 book on Maltese company law (pp 58-60).
Today, perhaps not so surprisingly, the body which more than others supports NEDs and promotes their benefits is seeking clarity regarding their effective benefits in practice
In April 2025, the Institute of Directors (IOD) of the UK established a Commission to explore the evolving role of non-executive directors (NEDs) in the UK and to evaluate whether, and to what degree they are truly delivering the anticipated benefits and how they can better contribute value to company boards.
The Commission will investigate the unique challenges faced by part-time directors in the light of recent corporate scandals and collapses that have raised concerns about their effectiveness. (https://www.iod.com/news/policy-and-governance/non-executive-directors-commission/)
According to the IOD website, the report will:
1. evaluate whether NEDs are adding value to boards of directors and to corporate governance more generally.
2. identify the main challenges and obstacles that NEDs face and to consider how they can be overcome.
3. make recommendations to boards and policy-makers concerning the more effective deployment of NEDs.
The findings should make useful reading.
Annual Company Law Conference 2025
On Wednesday 3 December 2025, I shall be once again organizing the Annual Company Law Conference for the Malta Law Academy (MLA) / Chamber of Advocates. This year’s event shall commemorate and debate thirty years of the Companies Act 1995. Leading speakers, academics and practitioners shall be addressing the conference which as usual shall be held at the Valletta Campus.
Next month’s column shall focus on the evolving duties and liability of directors and boards following recent legal and judicial developments outside Malta, but relevant nonetheless.
David Fabri LL.D., Ph.D. lectures in law and chairs the Malta Law Academy
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