MINISTER MICHEÁL MARTIN PUBLISHES CONSUMER PROTECTION BILL

The Minister Enterprise, Trade & Employment, Micheál Martin, today (Thursday 1 February 2007) published the legal text of the Consumer Protection Bill 2007. The Bill, which will formally put the National Consumer Agency on a statutory footing will be debated in the Oireachtas in coming weeks beginning in the Senate next Tuesday, 6 February.

Speaking at the launch of the Bill, Minister Martin said: “This Bill replaces much of the existing body of consumer law with a modern, up-to-date statute which will provide consumers with the highest level of protection in their dealings with business. It will also provide the National Consumer Agency with a wide range of enforcement powers to ensure that all businesses comply with their obligations to consumers under the Bill.”

Traders who mislead consumers, or act in an aggressive way towards consumers, or who otherwise engage in the extensive list of practices to be prohibited by the Bill, will be leaving themselves open to fines of up to €60,000 or imprisonment for up to 18 months for a first offence, if successfully prosecuted on indictment. Lesser penalties will apply in respect of summary prosecution.

The Agency will also be empowered to issue compliance notices and impose on-the-spot fines on errant traders; they will also be able to accept undertakings of compliance with the law from traders as an alternative to court proceedings. The NCA will be required to publish, on regular basis, details of all traders who have faced enforcement action. Courts will be empowered to order offenders to pay compensation to consumers and will also be able to require offenders to publish corrective statements.

“The adverse publicity of a name-and-shame policy can often be a more effective deterrent than a court imposed fine and this Bill leaves offenders no hiding place in that respect,” said Minister Martin.

A wide range of activity is prohibited by the Bill, from misleading consumers as to the price, characteristics and availability of a product, to exercising aggressive or undue influence on a consumer to enter into any particular transaction. “Making false or misleading claims about a product, persistent, unwanted calling of consumers, operating prize competitions that require the consumer to make a payment or incur a loss before a prize can be claimed, are all outlawed by this legislation,” Minister Martin said.

And he added: “The principal function of the National Consumer Agency will be to promote and protect the interests and welfare of consumers. It will do that through enforcing the relevant provisions of the Bill and encouraging compliance with them. However, it is also being given a range of powers to ensure that it can be a powerful advocate on behalf of consumers in policy making and in public debate.”

The Agency will be empowered to advise and make proposals and recommendations to Government on legislation that impacts on consumers, and will interact with other regulatory bodies to promote the interests and welfare of consumers.

The Bill also deals in an uncompromising manner with the issue of pyramid schemes. The definition of such schemes is significantly strengthened to capture so-called “gifting” schemes and it will be offence to both promote and participate in such schemes. Offenders will face prosecution on indictment and be liable to fines of up to €150,000 and 5 years imprisonment.

The Bill repeals and replaces 9 existing statues, the oldest of which, the Merchandise Marks Act, dates back to 1887. The functions of the office of the Director of Consumer Affairs will transfer to the new National Consumer Agency once the provisions of the Bill come into force. The Bill also transposes into Irish law the provisions of the European Union’s Unfair Commercial Practices Directive.

Link to the Consumer Protection Bill & the Explanatory Memorandum: http://www.entemp.ie/commerce/consumer/issues.htm

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