Martin plans to shut down businesses persistently flouting law

WHILE yesterday’s proposals include stiff fines and jail terms for traders, Enterprise Minister Micheál wants to go a step further and shutdown businesses which repeatedly flout consumer law.

“I am also looking at the possibility of giving powers to the [National Consumer] Agency to seek closure orders against traders who persistently and seriously flout the law,” he said.

“While I favour such a power, its inclusion in the new legislation will depend on legal advice.”

The minister expects to finalise the proposals and publish the bill in full in the autumn. A major portion of the bill derives from an EU directive aimed at enhancing consumer protection.

The Unfair Commercial Practices Directive was published in June 2003, and must be transposed into national law in member states by June 2007.

It prohibits unfair, misleading and aggressive commercial practices, and the 31 specific “anti-consumer” activities that the Government is proposing to ban hail directly from a “blacklist” within the directive.

The second element of the forthcoming bill will deal with the NCA. Responsibility for enforcing consumer protection will be transferred to the NCA from the Office of the Director of Consumer Affairs once the bill is enacted.

The NCA will be given greater powers and more funding to hit rogue traders.

Mr Martin said the bill would constitute “the first and most crucial phase” of what is a root-and-branch review of consumer law.

Phase two begins in the autumn, and will include a review of the law governing consumer contracts.

It will also review the regulations compelling traders to display prices.

“As part of this process, I hope to publish a public consultation document in the next few weeks in regard to regulations which require traders to display prices on all goods offered for sale to the public,” he said.

“These rules have been in force for some time now and it is appropriate that we look at how they are operating and amend them if there are problems.”

But Mr Martin’s department has stressed that the proposed new laws should not increase the regulatory burden upon businesses.

In an analysis of the bill’s likely impact, the department said: “The establishment of the NCA is not expected to impose any greater compliance burden upon businesses.

“Consumer law is currently enforced by the Office of the Director of Consumer Affairs. The bill provides that this enforcement function will transfer to the NCA on its establishment.

“It is not expected that this transfer of itself will give rise to any greater burden, neither is it expected that the additional statutory functions proposed for the NCA should increase the compliance burden on businesses.”