The Government will today publish plans to introduce unprecedented fines and even jail terms for traders engaging in unscrupulous practices, in the first major piece of new consumer law for 30 years.
Minister for Enterprise Micheál Martin will give details this morning of the Consumer Protection Bill, which is expected to specify over 30 trading practices which are to be outlawed.
These include making false claims about goods or services offered for sale, including property.
It will also ban misleading prize draw schemes and setting up pyramid sales schemes.
It will be an offence for traders to claim they can provide a standard of service they cannot back up.
It will also be against the law to tell consumers falsely that they require certain services. This would apply, for example, to traders who tell consumers that their car or house requires remedial works that are unnecessary.
The Bill will also cover claims about price reductions, making it an offence to claim falsely that certain goods have been reduced from a particular higher price.
The Bill will give legislative backing to the new National Consumer Agency (NCA), allowing it to initiate court proceedings against traders who breach consumer legislation. While the agency was established last year, the new Bill proposes to give it real power backed by law.
The agency was established last year on foot of recommendations of the Consumer Strategy Group.
That group was established by the Government amid growing concern that consumers were not adequately protected and that there was a "rip-off Ireland" phenomenon through which consumers were being overcharged and badly treated.
The new agency incorporated the functions of the Office of the Director of Consumer Affairs, and will now take on new statutory functions, including that of acting as an advocate for the consumer in public debate.
The new Bill will allow the agency to impose fixed penalties on traders who are found to have committed relatively minor breaches of the law. It will be empowered to take court proceedings against more serious offenders who will face severe penalties on conviction.
Under the legislation those summarily convicted - in the District Court - could be fined up to €3,000 or jailed for six months or both for a first offence. For a second offence they will face a maximum fine of €5,000 and 12 months in jail.
Those convicted on indictment - in higher courts for more serious offences - face a fine of up to €60,000 and 18 months' imprisonment for a first offence and €100,000 and 24 months in jail for second and subsequent offences.
The Bill is the latest in a series of Government measures designed to address serious voter concern over high prices and unscrupulous trading.