NCA warns ‘rip-off Ireland’ could return

CONSUMERS trying to budget for the recession are opening the way for a return to “rip-off Ireland” unless they demand lower prices for goods and services.

NCA warns ‘rip-off Ireland’ could return

A new survey on consumer attitudes, published yesterday by the National Consumer Agency (NCA), shows a fall in the number of people who shop around for better prices, from 75% to 67%, indicating a level of complacency among shoppers.

The report also shows the number of people who rarely or never “shop around” for the best value increased over the same period, from 25% earlier last year to 33% in the latter part of 2010.

The survey also shows that in some cases people put convenience ahead of cost, stating: “It can be seen that convenience has increased slightly as a determining factor.”

The research, based on surveys of consumer attitudes across four periods in 2008 and 2009, shows that almost three in five consumers shop around and compare prices in supermarkets and newsagents.

The next highest category where consumers shop around is shops selling clothing and footwear. However, when it comes to airlines, car dealerships and petrol stations people are slightly less likely to be as discerning when it comes to price and value for money.

The research also finds that the number of consumers taking out insurance products has fallen back slightly between May/June and November /December of last year.

There was also a decrease in the number of consumers who have purchased from a travel agency or a car dealership.

Fergal O’Leary of the NCA said that while it would not be wise to overstate the extent to which people have stopped shopping around for value, it was important that people remain vigilant against price rises.

“The majority of people still shop around,” he said.

“We would have seen a slight creeping back and it is important we highlight this because if we do not we could creep back to the old ways and retailers will take advantage.”

He said the reasons for the slight fall-off in shopping around for the best value may be due to complacency over the recent reduction in the cost of living.

“People may feel that retailers have lowered their prices as much as they are going to.

“I would not share that view, I think there is still a way to go.”

The NCA also said there was room for more price comparison sites to allow people make consumer choices. He also said that the NCA would neither condemn nor advise shoppers to do their shopping across the border.

“People have to take a number of things into account including supporting local jobs and local business,” he said.

* consumerconnect.ie

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