Consumer laws target pyramid schemes

PYRAMID schemes are to be banned under new laws coming into effect next week.

Consumers are also to get new rights enshrined in law from Tuesday next under the biggest shake-up of fair trading legislation for 30 years.

Enterprise Minister Micheál Martin’s new consumer bill will finally become law on May 1, sweeping away laws dating back 120 years.

Under the new law, the shadow National Consumer Agency will become an official body with full powers to prosecute rogue traders.

The new law also bans 31 sharp practices, including pyramid “gifting” schemes of the kind that cost investors €20 million in west Cork alone last year.

Making false claims about a product or service, baiting customers by advertising non-existent deals, prize draw scams and persistent cold calling will all be banned under the law.

The National Consumer Agency (NCA) will be able to haul cheats before the courts where judges will be able to fine or even jail rogue traders.

Both the NCA and consumers will also be able to obtain court injunctions to prevent traders from fleecing shoppers while courts will be empowered to award compensation as a redress.

This week the Department of Enterprise, Trade and Employment would only confirm the raft of new laws would be enacted soon. But internal Fianna Fáil documents seen by the Irish Examiner and a highly- placed source within the Government’s consumeraffairs team have separately confirmed May 1 as the date.

Their confirmation follows months of delays in bringing in new laws which consumer champions said were vital for a modern Ireland.

The NCA, which will have a budget of €8.4m this year, will also work closely with energy and phones watchdogs when prices are reviewed annually.

It will also publicise consumer information, carry out research into vital issues, educate the public and carry out awareness campaigns.

Yesterday the Consumers’ Association of Ireland (CAI) said it was unhappy over the new NCA, saying the body was a toothless watchdog.

“This agency has been promised for a long time but Micheál Martin has missed a golden opportunity here,” said CAI chairman Michael Kilcoyne.

The CAI boss said the NCA had too few powers, was not independent of Government and was not truly representative of consumers.

consumerconnect.ie