New Consumer Protection Bill Introduces Severe Penalties For Deceptive Traders

Offenders will face fines of up to €60,000 or imprisonment for up to 18 months for a first offence, if found guilty.

The Agency will also be empowered to issue compliance notices and impose on-the-spot fines on errant traders

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 Micheál Martin, T.D., Minister of Enterprise, Trade and Employment, at the launch.

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.

"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," he continued.

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

The Bill also significantly enhances the rules regulating pyramid schemes. The definition of such schemes is significantly strengthened to capture so-called 'gifting' schemes.

If the law is enacted, 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.

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," concluded Minister Martin.