New agency won't cut prices, says Consumers' Assoc

The Consumers' Association has expressed doubt about whether the new national consumer agency being launched by the Government today will lead to lower prices.

The new body will have the power to issue closure orders against businesses that engage in misleading pricing, advertising and labelling.

It was recommended by the Consumer Strategy Group established by the Government in response to anger about rising prices and the widespread belief that greedy retailers used the euro changeover to rip off the public.

However, Consumers' Association spokesman Michael Kilcoyne said he did not foresee any reduction in prices.

"Anything that highlights consumer issues is to be welcomed," he said. "Perhaps there may well be tighter enforcement of the laws on consumer protection, but it is not, in my opinion, going to result in lower prices."