Consumer watchdog finds increase in misleading pricing amid cost-of-living crisis

'The CCPC is taking action against rogue traders who try to dodge their responsibilities and deceive their customers,' said Competition and Consumer Protection Commission chairman Brian McHugh.

Incidences of misleading pricing and incorrect information on the return of goods among businesses surged last year amid cost-of-living pressures, a report suggested.

The competition watchdog’s annual report showed the number of compliance notices sent to traders in relation to these issues doubled in 2023 compared to the previous year.

“From small daily purchases to big financial decisions, markets must work for consumers. The CCPC is taking action against rogue traders who try to dodge their responsibilities and deceive their customers,” said Competition and Consumer Protection Commission (CCPC) chairman Brian McHugh.

In its 2023 annual report, the CCPC said the number of fixed payment notices for offences such as failing to provide price labels increased by 206%.

“We carried out 183 inspections across the country to ensure in-store, online, and vehicle traders in various sectors were complying with consumer protection law,” said Mr McHugh.

The CCPC recorded more than 900,000 visits to the watchdog’s Money Tools, a 17% increase on the previous year, indicating financial pressures weighed on consumers in a high interest rate environment due to sticky inflation. 

In addition, the watchdog received about 40,000 calls from consumers last year.

Motor insurance

The number of contacts for motor insurance rose by 42% when compared with the previous year, and 40% of the motor insurance cases concerned claims.

Financial burdens associated with motor insurance have spilled over into this year as well, as separate figures from the Central Statistics Office showed prices crept up in so called “miscellaneous” goods and services businesses in the 12 months to May. 

This increase was mainly driven by higher health and motor insurance premiums and a rise in prices for hairdressing salons.

The rate of inflation in areas like motor and home insurance, where prices rose 8.2% and 7.4% respectively “is a concern”, said Paul Walsh, spokesman for Peopl Insurance in response to the recent CSO figures.

“The rise in the cost of car repairs and consequently damage claims is one of the things likely to be pushing up motor insurance premiums. If the cost of damage claims continues to go up, so too will the rate that motor insurance premiums will increase by,” he said.

Dawn raids

Meanwhile, the consumer watchdog also carried out unannounced visitations, also known as dawn raids, at four premises last year as part of two separate investigations.

The CCPC also ordered 180,000 unsafe products to be withdrawn or recalled from the Irish market in the period.

This year, new competition law came into force which will give the CCPC ramped-up powers to fine firms.

“This means we can choose what to investigate, gather evidence and fine guilty companies. With the help of these new powers, we intend to move faster, take more cases, and become even more of a deterrent to bad actors in the Irish marketplace,” said Mr McHugh.