Construction sector to come under scrutiny

Anti-consumer practices in the construction industry are to come under scrutiny in a major new study commissioned by the National…

Anti-consumer practices in the construction industry are to come under scrutiny in a major new study commissioned by the National Consumer Agency (NCA).

In its first investigation, the agency plans to look at consumer issues arising in all forms of building and property purchase. Tenders are being sought for a study that will make recommendations that are expected to lead to policy changes.

"If you buy a kettle or a dishwasher, you have far more consumer protection than if you buy a house," Ann Fitzgerald, chair of the NCA, told The Irish Times. "It's a huge area, and yet no one has looked at it closely."

"I have seen contracts where the developer can change the spec or the location without any reference to the consumer. There are all sorts of disclaimers in marketing materials which need to be looked at. And what guarantees does the purchaser have when they are buying or renovating their house? What if there's a problem down the line? After all, it's the biggest investment of a person's life."

READ MORE

Separately, the NCA is conducting an investigation into gyms, amid allegations that some operators include unfair conditions in their contracts. These include a refusal to accept liability for accidents, or a lack of clarity about the length of contract or its renewal. "If changes need to be made, we'll give them the chance to do that. But if they don't, we will have the powers to bring offenders to court."

Ms Fitzgerald said car "clocking" was a huge problem, with 50 alleged cases over recent months - the same number as in the previous three years. It was "madness" that the National Car Testing service was unable to tell an owner that the mileage on a car had been changed downwards from one test to the next.

The agency has taken a lead role in trying to resolve problems that have arisen in the management of apartment blocks. Last week, it held the first meeting of a new forum representative of builders, estate agents, property managers and lawyers.

"It shouldn't require new laws to give apartment owners a five-year projection of the charges they will face, for example, or to provide them with a comprehensible summary of their lease."

The new agency's corporate plan is currently with the Department of Finance for approval. It envisages annual funding of almost €11 million for an 80-strong organisation.