Pyramid selling, prize-draw scams, unwanted cold calling and making false claims about products and services have been outlawed under new consumer legislation which has come into force.
The Consumer Protection Act also provides for on-the-spot fines for those who break consumer laws and formally establishes the National Consumer Agency (NCA) as a statutory entity.
However, as reported last week in The Irish Times, Minister for Enterprise, Trade and Employment Micheál Martin has rowed back on a proposed ban on credit card surcharges, which formed part of the Act passed by the Oireachtas last month.
The sections of the Act dealing with the surcharge ban, which would have prevented traders from charging more when customers use certain payment methods, did not come into force yesterday.
The Minister's spokesman said he was fully committed to introducing this provision next October. The additional time was being provided to assess the impact of the measure and to give the travel trade, which regularly imposes surcharges on customers paying by credit card, time to adjust to the change.
Mr Martin said the Act "has been designed to provide Irish consumers with one of the strongest and most modern consumer protection regimes".
He described the establishment of the NCA on a statutory basis as "a red-letter day" for consumers. "The agency has been given a very strong and significantly expanded remit to enable it to begin shifting the balance of power more towards consumers."
Under the Act, traders who mislead consumers could face fines of up to €60,000 or 18 months in jail. Those involved in pyramid selling schemes face penalties of up to €150,000 and five years' imprisonment.
Courts will be given the power to order offenders to pay compensation and to publish corrective statements.
However, most offences are likely to be dealt with summarily, with penalties of up to €3,000 and/or six months in jail for a first offence.
The Minister also announced the appointment of Stephen Costello as the NCA's chairman.
