Need for consumer protection on Internet services stressed

The number of investigations carried out by the Office of the Director of Consumer Affairs increased by a third last year to …

The number of investigations carried out by the Office of the Director of Consumer Affairs increased by a third last year to 1,767.

Misleading advertising, product safety and misleading or erroneous price display accounted for almost three out of four inquiries, according to the body's annual report published yesterday.

The number of telephone inquiries to the office also rose by over 30 per cent to 22,424, with clothes, electrical goods, holidays, motor vehicles and household goods the source of most complaints.

In her foreword to the report, the Director of Consumer Affairs, Ms Carmel Foley, warned of the need to adapt to new technologies and develop consumer protections in growing areas such as Internet banking and online advertising.

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"One of the key challenges facing Ireland at present, and one to which the Government has shown its commitment and devoted much resources, is how to maximise the opportunity presented by e-commerce. Critical to this is to recognise that in whatever steps are taken, there must be consumer confidence."

Among the areas investigated by her office last year were commissions charged by banks in converting euro currencies and in cashing cheques drawn in euros.

The report noted that "significant handling charges" could be incurred when euro cheques drawn in the State were cashed in another jurisdiction. "This is due to the absence of a pan-European central clearing system and is a problem that is likely to become more prominent and widespread when the euro becomes a physical currency in 2002."

On moneylending, the report showed that 66 licences were granted last year, a drop of two on 1998 "due to some retrenchment in the industry".

The number of complaints about the activities of moneylenders also fell, with most complaints relating to the practices of moneylenders or their agents.

Ms Foley, in addition, intends to take further action against overpricing in the drinks industry after a survey last year found that 75 per cent of publicans were not complying with a legal requirement to display prices.

Follow-up inspections are to take place in the coming months with the threat of legal action if publicans continue to refuse to display a 16-item price list.

On housing, the report said the office continues to be concerned about clauses added to contracts by some builders which have the potential for unfairness. One such term has the effect of allowing the builder to terminate the contract "where he is unable or unwilling to do something required by the purchaser".

The director has sought legal opinion on this and other clauses with a view to seeking a High Court order preventing their use. According to the report, a decision on whether to take such an action is imminent.

The report also found a growing number of food labelling complaints coming before the office, including one last year from the Irish Farmers' Association against labels on certain bacon products which, through the use of Irish names or images, had the potential to mislead consumers into thinking they were Irish when, in fact, they were imported.

A legal difficulty has stopped the director from pursuing the case further but she said she intended to do so once new food labelling regulations were introduced.

Joe Humphreys

Joe Humphreys

Joe Humphreys is an Assistant News Editor at The Irish Times and writer of the Unthinkable philosophy column