The government are cracking down on dishonest commercial practices following the approval of a new law that will strengthen consumer rights.
Under the Consumer Rights Bill 2022, companies who engage in misleading and aggressive commercial practices, such as fake reviews, could be subject to fines imposed by the courts following enforcement action taken by the Competition and Consumer Protection Commission (CCPC).
The new law consolidates and modernises consumer law and gives consumers new protections.
For the first time, consumers will have the same rights and protections over digital content and digital services e.g., streaming, downloads, cloud products, as traditional products, and services.
New digital rights include the right to full refund, exchange, or repair when good or service is not as described or not fit for purpose. Consumers will be entitled to any upgrades to the product or service that are needed to ensure the goods continue to work as expected and agreed, free of charge.
New prohibited, ‘black-listed’ terms and conditions which are automatically regarded as unfair when put in a contract. Examples include any condition which allows a trader to unilaterally change the terms of a contract, or any provision which would indemnify a trader from harm caused by a product or service
Businesses will also be required to set out clearly a description of the goods or services being provided, the total price of the item and the cost of delivery before entering into a contract with a consumer.
Redress options
Instead of just exchange, refund or repair, customers will also be entitled to agree a price reduction on faulty goods, if that suits them better. They will also be entitled to withhold payment for goods partially paid for if they are not satisfied with the quality of the item received. Any form of redress must be free of charge and must be carried out as soon as possible.
“This Bill represents the biggest overhaul of consumer rights law in 40 years,” said Minister of State with responsibility for Consumer Protection legislation Robert Troy. “The proposed legislation modernises and consolidates existing consumer protection law and significantly strengthens the enforcement powers of our agencies responsible for ensuring consumer rights such as the CCPC and ComReg. For example, the CCPC will now be able to take enforcement action against traders who refuse or fail to provide consumers with a remedy for faulty goods or services and against traders who fail or refuse to make a reimbursement to which consumers are entitled under the Act.
“Once enacted this legislation will strengthen protections for consumers, while also creating clearer rules for businesses ensuring the market works fairly and effectively for both.”
Secretary general of Digital Business Ireland Lorraine Higgins commented: “Digital Business Ireland warmly welcomes today’s announcement of the publication of the Consumer Rights Bill 2022. In particular, we acknowledge the tremendous work by Government in implementing strong protective measures of digital goods and services for the first time and enhancing the existing rights of consumers.
“Over the course of the last two years, businesses have taken extraordinary steps in pivoting online, and as a result, consumers are becoming more accustomed to the convenience and security afforded by online shopping. At Digital Business Ireland, our most recent research showed that 38% of consumers plan to increase their online expenditure this year. Therefore, it was imperative that Government took steps to adequately protect consumers, while providing coherent guidelines for businesses who trade online. This move will hopefully give the edge to Irish merchants trading in the global marketplace.”
The Consumer Rights Bill 2022 will be published shortly and will then make its way through all stages in the Oireachtas. The Joint Oireachtas Committee on Enterprise, Trade & Employment has completed pre-legislative scrutiny on the Bill.
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