Lesson 5: - PowerPoint Presentation

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Lesson 5:

Consumer Protection Act 2007Slide2

NOTE: The current curriculum refers to the Consumer Information Act 1978 which was the predecessor to the Consumer Protection Act 2007.

Exam answers should refer to the Consumer Information Act 1978. Reference may be made to the Consumer Protection Act 2007, but such references should be clearly highlighted.Slide3

Overview of LessonThe Consumer Protection Act 2007:Established the National Consumer Agency

Deals with misleading claims about goods, services and pricesDeals with EU Directives on unfair, aggressive, misleading and prohibited commercial practicesSlide4

IntroductionThe Consumer Protection Act 2007 came into effect in Ireland on 1 May 2007It replaced the Consumer Information Act, 1978

It also replaced many older consumer laws, some of which dated from the 19th centuryIts main function was to establish the National Consumer AgencySlide5

Functions of National Consumer AgencyThe main functions of the NCA are to:

Inform consumers of their rights through consumer informationPromote a strong consumer culture through consumer education and awareness

Help businesses comply with consumer law through its

enforcement

activities, and,

Represent consumer interests at all levels of local and national consumer policy development through targeted

research

and forceful

advocacy

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Activities ofNational Consumer AgencyIn carrying out its functions, the NCA performs various activities, e.g.

Work with and consult consumer groupsConduct or commission research into areas of consumer interestPromote public awareness and conduct consumer rights information campaigns

Raise awareness of consumer rights in young people through educational initiatives (Shop Smart, quizzes)

Prepare and publish guidelines for traders

Perform the functions previously carried out by the Director of Consumer AffairsSlide7

Powers of National Consumer AgencyIn carrying out its functions, the NCA has various powers, e.g.:

To advise and make recommendations on any legislation or policy which is likely to impact on consumer protection

To make proposals

for new legislation

To appoint authorised officers to enforce consumer legislation. These officers have the right to enter premises, get documentation and other evidence in relation to any trade or business which is being investigated. They have the right to be accompanied by the

Gardai

, if necessary and apply to the courts for search warrantsSlide8

Misleading ClaimsUnder the Consumer Protection Act, 2007 it is a an offence for any retailer, service provider, manufacturer or advertiser to make a false or misleading claim about themselves (e.g. that they are members of a trade association when they are not), or goods, services or prices

It is an offence to sell goods that have a false or misleading description It is also an offence to omit to give a consumer material information about a product or service (e.g. not telling a buyer that a car has been crashed because they didn’t ask the question) Slide9

(i) Misleading Claims about GoodsClaims about ingredients, performance and weight must be truthfulExamples of misleading claims about goods include:

Trader selling second-hand cars which have been “clocked”, i.e. the odometer has been tampered with to show a reduced mileage

Claim that a product will help remove dandruff when there is no proof that it will do so

Claim that a product is “Made in Ireland” when in fact it was produced elsewhereSlide10

(ii) Misleading Claims about ServicesClaims about the manner, place or time in which a service is provided and claims about the effect of a service must be true

Examples of misleading claims about services include:A claim that a service is provided within 24 hours if it will actually take longer, e.g. dry cleaning, photo developingA claim a service is available nationwide if it is not available throughout the countryA claim that a satellite television package includes sports channels which are in fact only available at an extra subscription costSlide11

(iii) Misleading Claims about PricesPrevious prices, actual prices and recommended prices of goods must be stated truthfully

Example: when a retailer advertises an item’s previous price in a sale, the item must have been on sale at that price for 28 consecutive days in the previous three monthsSlide12

EU DirectivesThe Consumer Protection Act 2007 brings into Irish law an EU Directive on unfair, misleading and aggressive commercial practicesIn short, sellers may not use practices that may lead to consumers buying products or services that they would not buy under normal circumstancesSlide13

(i) Unfair PracticesAn unfair practice occurs when there is a breach of good faith and a consumer is denied a reasonable standard of skill and care

Example: a trader whose business is carrying out home improvement work “cold calls” potential elderly customers. He attempts to sell his services to the consumer on the doorstep and attempts to start work without permission, after telling the consumer that the roof is in need of repair when this is not the caseSlide14

(ii) Misleading PracticesA practice is misleading if it contains false or untruthful information or deceives the consumerExample: a bakery placing a sign in the window stating: “Our Award Winning Bread”. Unless the bread has genuinely won an award this would be a misleading practiceSlide15

(iii) Aggressive PracticesAggressive in this context means the use of harassment or undue influence on the consumer Examples include:

A mechanic has a consumer’s car at his garage and has done more work than agreed. He refuses to return the car to the consumer until he is paid in full for his work. The mechanic had not checked with the consumer before carrying out the extra workA trader takes consumers to a holiday club presentation at a distant location, with no apparent return journey unless consumers sign a contract to purchase another holidaySlide16

(iv) Prohibited Practices The CPA also contains 32 specifically prohibited practices including:

Claiming an item is free if you have to pay more than the reasonable cost of responding to the offer or having the item delivered

Commercial sellers creating an impression that they are private sellers

Telling a consumer they have won a prize where payment is required in order to claim that prize

Seeking payment for unsolicited goods, or the return of those goods

Claiming the business is closing down when it is notSlide17

Summary of the LessonThe Consumer Protection Act 2007:Established National Consumer AgencyDeals with misleading claims about goods, services and prices

Deals with EU Directives on unfair, aggressive, misleading and prohibited commercial practicesSlide18

Elements of the Consumer Protection Act 2007Slide19

Role PlayIn pairs, read the role play scenariosChoose one and prepare a likely conversation that would take place between the main parties involvedEach role-play should last no longer than one minute