The Irish Times view on consumer protection in Ireland : more realistic penalties needed

There is little incentive for retailers to follow the rules, while the limit on cases which can be brought to the Small Claims Court reduces its usefulness for consumers

Shoppers in Dublin:  more realistic penalties are needed for retailers who break the law. (Photograph Nick Bradshaw for The Irish Times)
Shoppers in Dublin: more realistic penalties are needed for retailers who break the law. (Photograph Nick Bradshaw for The Irish Times)

The Competition and Consumer Protection Commission (CCPC) deserves credit for the robust way it has represented the interests of Irish consumers in recent years. However, it is increasingly clear that it has been operating within an legislative framework that is not as strong as it needs to be.

The CCPC was created in 2014 through the merger of the National Consumer Agency and the Competition Authority, and was given responsibility for enforcing and promoting compliance with competition, consumer protection and product safety laws. It has done its job well, but it would be the first to acknowledge that more can and should be done to protect Irish consumers.

Last week it took three retailers to court over their pricing during the Black Friday and Cyber Monday sales window in 2023. The breaches – the first under 2022 legislation aimed at protecting shoppers from misleading sale prices – were identified following an investigation in late 2023.

The case saw the probation act applied to Lifestyle Sports, DID Electrical and Rathwood Home and Garden World in Dublin’s district court with each agreeing to make a ¤1,000 donation to a charity.

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This highlights the relatively mild sanctions that can be imposed on companies that break the law and, as the CCPC has repeatedly noted, the penalties do not serve as much of a financial deterrent to businesses with deep pockets.

Consumer queries and complaints are increasingly common, with the CCPC annual report showing 45,000 people contacted its helpline last year, up 5,000 on 2023. Here again the rules need to be updated – the average amount spent by a consumer who contacted the commission was just over €6,000, but the Small Claims Court can only handle cases worth up to €2,000.

The CCPC has called for this arbitrary ceiling to be addressed to reflect the realities faced by consumers. This should happen – and the broader framework of consumer protection must be updated to ensure that those who routinely breach consumer legislation face a realistic penalty.