Watchdog targets ‘rip-off merchants’

BUSINESSES ripping off customers by charging higher-than-advertised prices or clocking cars led to the country’s consumer watchdog taking 85 enforcement actions in the past year.

Figures released by the National Consumer Agency (NCA) yesterday showed that in the 12 months to the end of last month, it had issued 40 fines and brought six prosecutions against businesses flouting the laws.

In all, the consumer protection list shows 85 enforcement actions were brought by the NCA against 67 businesses, including 31 compliance notices and a number of prosecutions relating to charging prices higher than the displayed price. Two compliance notices were brought for the watering down of alcoholic drinks, while there were prosecutions for offences, including offering a clocked car for sale. One prohibition notice was served relating to misleading advertising by a furniture company.

In the previous 12 months there were just 33 enforcement actions taken by the NCA against retailers, but the NCA’s director of commercial practices John Shine said that did not necessarily mean consumers were now getting a worse deal.

“There is value out there, but there are also rip-off merchants out there,” he said.

The NCA – which is to merge with the Competition Authority – is conscious of the effects of the recession, he said, and the fact it could prompt some business to “cut corners” at the expense of consumers.

Mr Shine said consumers can complain if they believe they are being ripped off.

The enforcement actions taken by the NCA in the past year were as a result of complaints from members of the public and inspections carried out by the NCA.

Speaking about the figures, NCA chief executive Ann Fitzgerald said: “High standards of compliance will help generate competition... However, if this is not forthcoming, the agency will take appropriate enforcement measures. To avoid the risk of NCA intervention and the possibility of adverse publicity, it is in the interest of all businesses to put systems in place that will ensure consumers are not misled or disadvantaged.”