Ireland’s Consumer Rights Revolution: What’s Next for Fairer Markets?
Irish consumers have faced a sustained period of financial pressure, with the cost of living soaring in recent years. As the Dáil approaches its summer recess, attention is turning to potential policy changes that could offer tangible relief and strengthen protections. Several initiatives, some dating back to 2021, are now gaining renewed momentum.
The Long Road to Consumer Protection: The Loyalty Penalty Bill
A key piece of legislation poised to make a difference is the Consumer Protection (Loyalty Penalty and Customer Complaints) Bill. Introduced in 2021, this bill aims to outlaw the practice of penalizing long-term customers with higher prices than those offered to new subscribers – a common tactic in sectors like telecommunications, insurance, and utilities. This forces many into an annual cycle of switching providers simply to secure a competitive rate, disproportionately impacting older individuals and those less comfortable with price comparison websites.
Beyond ending loyalty penalties, the bill seeks to hold service providers accountable for poor customer service. Strengthening enforcement powers is seen as a crucial deterrent, incentivizing genuine improvements across various sectors.
Transparency Troubles: Unpacking Opaque Pricing
Increasingly, consumers are frustrated by opaque pricing practices. Event ticketing is a prime example, where advertised prices often exclude mandatory booking fees revealed only at the point of purchase. The availability of tickets at the advertised price is often unclear, with allocations frequently reserved for presales or corporate hospitality packages. Hotels also frequently inflate prices following major event announcements, and in some cases, even cancel existing bookings to re-list rooms at higher rates.
The Government is considering mandating that the advertised price of any product or service include all unavoidable fees, starting with booking charges for events. Requiring hotels to honour confirmed bookings, regardless of demand fluctuations, is also under discussion.
Mid-Contract Price Hikes and the UK Model
Another common consumer grievance is mid-contract price increases. Addressing this could involve adopting transparency requirements similar to those in the UK, where any increase must be clearly indicated as a monetary amount. Showing customers a contract’s total expected cost upfront, similar to how energy providers display estimated annual bills, could also provide greater clarity.
The Role of Comparison Tools and Financial Literacy
Government policy has often relied on private comparison tools like Bonkers.ie and Switcher.ie to help consumers navigate markets. Even as useful, these platforms are commercial enterprises with inherent conflicts of interest. Many consumers also lack financial literacy and may not fully understand the long-term implications of products like personal contract plans for car payments or buy-now-pay-later schemes.
Expanding the remit and funding of the Competition and Consumer Protection Commission (CCPC) could allow it to take on a larger role in consumer education, comparison tools, and price tracking. A public grocery price database, tracking historical trends and per-unit prices to monitor shrinkflation, is also being considered.
Streamlining Bank Account Switching
Switching banks in Ireland remains a cumbersome process, requiring consumers to verify that all direct debits and payments have transferred correctly. A streamlined, digital switching process, where consumers could select their new provider and accounts online with just a few clicks, would dramatically improve user experience.
Transport Costs and Predatory Lending
Transportation costs, particularly for those in areas with limited public transit, represent a significant portion of household budgets. Expanding fare caps, increasing access to multi-modal travel passes, and ensuring affordability across regions are potential solutions. Regulatory oversight of personal contract plans and leasing arrangements in the private vehicle market is also needed to address concerns about predatory lending and a lack of transparency.
Tackling Energy Poverty with Long-Term Solutions
Ireland’s growing energy poverty crisis demands urgent attention. Current policy responses have focused on short-term subsidies, but these don’t address the root causes. Many affected households live in poorly insulated homes with outdated heating systems. Introducing long-term, interest-free retrofit loans, secured against the property and means-tested, could help those most in need access lower energy bills.
FAQ: Your Questions Answered
Q: What is the Consumer Protection (Loyalty Penalty and Customer Complaints) Bill?
A: It’s a bill designed to ban companies from charging long-term customers higher prices than new customers.
Q: What is shrinkflation?
A: It’s when manufacturers reduce the size or quantity of a product while keeping the price the same.
Q: What is the CCPC?
A: The Competition and Consumer Protection Commission is the Irish government body responsible for protecting consumers and promoting competition.
Q: Will hotels be required to honour bookings?
A: The Government is considering requiring hotels to honour confirmed bookings, even if demand increases.
Q: What are mid-contract price increases?
A: These are price increases that occur during the term of a contract, often without sufficient notice or justification.
