The first major piece of consumer protection legislation in 30 years has been circulated for discussion by the Minister for Enterprise, Trade and Employment, Micheál Martin and may reach the Dáil in the autumn. It is an important development and will provide for the transposition into Irish law of an EU directive on unfair commercial practices. Significantly, however, reforming legislation in relation to consumer rights and contracts will be delayed until after the general election.
The Government is moving gingerly in shifting the balance of power away from producers and big businesses and towards the consumer. That should come as no surprise, given the traditional power and influence of professional and commercial interests. The important thing, however, is that much-needed reform is being contemplated. As an indication of his good faith in that regard, the Minister will ban a range of 31 anti-consumer activities, including pyramid selling, cold calling and prize-draw scams.
This time last year, the Government suffered a setback to its popularity as a result of the Rip Off Republic series on RTÉ television. Commercial interests were shown to be engaging in widespread anti-competitive practices and exploiting vulnerable consumers. Voters responded angrily. Following that episode - and contrary to earlier expectations - Mr Martin antagonised elements of the retail sector and abolished the contentious Groceries Order, which banned below-cost selling for certain foods. Now he is taking steps formally to establish and fund a National Consumer Agency (NCA) which will work closely with regulators in the energy, telecommunications and aviation sectors; engage in research and offer advice on product availability, price and choice to consumers.
This is all positive stuff. And some of the penalties proposed for law-breakers are quite stiff. But why is the Minister only "looking at the possibility" of permitting the NCA to seek closure orders against rogue traders? And why has phase two of consumer protection legislation, involving a review of consumer rights, contracts and other matters been deferred for consideration? The Minister is running out of time in relation to this Bill. Agreement on the banning of aggressive commercial practices, such as cold calling and pyramid selling, was first reached during Ireland's presidency of the EU in 2004. And all member states were required to implement the EU directive by next June. In that context, the Government will just meet the established deadline and confront a range of consumer issues that has been hanging fire for years.
There are important reasons why the Government should push ahead in developing consumer legislation. It provides an important balance between producer and purchaser. It encourages competition and innovation in the economy. And it acts as a brake on inflation. The production of this Bill is a welcome development, even if political commitment to the extension of consumer rights - at the expense of big business - remains fragile.