Martin announces major reform of consumer law

The Government has announced details of a new bill designed to protect consumers that comprises the biggest reform of the area in 30 years.

Micheal Martin

Minister for Enterprise Micheál Martin said the bill wil help to ensure that Ireland "will have one of the strongest and most modern consumer protections in the world".

The Consumer Protection (National Consumer Agency) Bill, contains a general prohibition on sales tactics "that might be considered unfair, aggressive or misleading", the Minister said. It also lists 31 different activities that are banned under all circumstances.

These include pyramid selling, prize draw scams, making false claims about a product or service, "baiting" customers by advertising products for sale that are not available, persistent and unwanted cold-calling and certain types of advertising aimed at children.

Other breaches will include claiming that products are able to facilitate winning in games of chance, falsely claiming that a product is able to cure illnesses, dysfunction or malformations and advertising a product as "free" when the customer will be liable to charges to claim the product and have it delivered.

It will be an offence for traders to claim they can provide a standard of service they cannot back up or telling consumers falsely that they require certain services.

Traders found guilty of breaches of the Bill will face hefty fines or jail sentences. The courts will also be empowered to order compensation be paid to victims.

Mr Martin said the legislation will simplify the law for consumers, enforcers and traders.

"Inviting people into joining a pyramid scheme or running one would clearly be an offence under this act," said Mr Martin. "The legislation also offers some encouragement or incentive to people who come forward and give details to gardai on how they were involved."

The Bill will also formally establish the new Consumer Agency. The agency "will be a powerful advocate on behalf of consumers", Mr Martin said. "It will have the resources to contribute on all issues that are of real concern to consumers.

"It will, for example, be empowered to work closely with regulators in the energy, telecommunications and aviation sectors and to offer an informed consumer perspective on availability, price and choice. The agency will also take a leading role in consumer information, research, education and awareness," he said.

Mr Martin said he was considered introducing measures that would allow the agency to seek closure orders against traders who "persistently and seriously flout the law". Such measures will depend on legal advice, he said.

Fine Gael's enterprise spokesman Phil Hogan claimed the Bill was "too little, too late for the hard pressed Irish consumer". He said there was no commitment to keep Government-controlled price increases at or below the level of inflation. "These are in reality the real driver of inflation," he said.

Mr Hogan also described the Consumer Agency as a "toothless tiger" with weak powers and "aspirational" objectives.