National Consumer Agency publishes 2009 annual report
13 July 2010
The National Consumer Agency (NCA) today published its third annual report, revealing significant enforcement activity for 2009.
In total 96 enforcement activities were undertaken by the NCA, using the wide-ranging powers it has under the Consumer Protection Act.
The Chief Executive of the NCA, Ann Fitzgerald, said: "The remit of the Agency covering enforcement, advocacy, research, information/awareness and education enables us to develop a co-ordinated and multi-faceted approach to consumer welfare.
"A robust risk-based approach to enforcement is a key element of the Agency commitment to delivering a fair deal for consumers. By acting on information we receive through a number of channels, this means that we target the areas where we know there is consumer detriment and use our powers to address unfair commercial practices in the most appropriate and most effective way possible.
"In fact, the majority of cases investigated are resolved without the need to take formal enforcement action but nonetheless, deliver on our goal to create best practice compliance standards and to ensure consumers are treated fairly.
"Other highlights from 2009 include two large-scale grocery price surveys covering branded and own-brand goods and we also published our first segment-based price survey - a comparison of prices charged for over the counter medicines and personal care products in pharmacies and supermarkets.
"In response to market changes and evidence from our consumer research, a ConsumerValue section was developed for the consumerconnect.ie website, to help consumers get a better deal. We also ran a campaign to raise awareness amongst consumers of carbon monoxide poisoning arising from certain gas cookers which had led to deaths here and in the UK."
Enforcement
The enforcement actions taken by the agency in 2009 included:
- 54 on-the-spot fines to 52 traders;
- 32 compliance notices to 30 traders (directing them to remedy contraventions)
- six prosecutions;
- three undertakings
- one prohibition order
The main areas of enforcement activity are outlined below.
- Pricing within the retail sector: There were three risk-based compliance blitzes undertaken, resulting in visits to 424 traders across various retail sectors. This activity examined compliance with price display legislation and misleading pricing (where the consumer may be charged more than the price displayed). While grocery/supermarket sector accounted for the largest number of visits and enforcement actions, on-site visits were also carried out across a range of other sectors including licensed premises, catering establishments, garage forecourts, hardware/DIY outlets and electrical/electronic shops.
- Adulterated ('watered down') drink: Five licensed premises were visited in 2009 and samples were taken and referred to the state laboratory for analysis. Compliance notices were issued to two premises on foot of the results.
- Car clocking: One car dealer was successfully prosecuted in 2009 for offering a clocked car for sale. The Agency also initiated proceedings in the Circuit Court against another car dealer (who did not comply with the terms of a previous undertaking) and a Prohibition Order was made against the trader in early 2010.
- Misleading advertising: Two website operators using 'bait advertising' (sensationalist advertising, such as "a car for a €1", used to lure consumers) agreed to remedy offending advertisements. In addition, a compliance notice was issued to another operator. The agency also received an undertaking from a furniture retailer to refrain from certain advertising practices and another undertaking from a company to refrain from making claims about the certification of a sewage treatment plant.
Other activity
Other highlights from the 2009 report include:
- Several price surveys published. Two large-scale grocery price surveys covering branded and own-brand goods were published in February and July 2009. The latter survey highlighted significant competition in the branded market. And the first of a planned range of extended segment-based price surveys was published in November '09 - a comparison of prices charged for over the counter medicines and personal care products in pharmacies and supermarkets. The results showed significant price differences for identical products between the various sales outlets.
- Delivering Better Value to Consumers: In response to the economic downturn and research (showing that 50% of consumers were finding it difficult to make ends meet), a ConsumerValue section was developed for the consumerconnect.ie website, to help consumers cope with the financial pressures of the recession and get a better deal without radically changing their lifestyles.
- Production of advertising guidelines for the retail sector. These related to the advertising of price promotions and other related issues.
- The development of several high profile public awareness campaigns. Key issues highlighted included carbon monoxide poisoning arising from certain gas cookers, scams activity to coincide with 'April Fool's Day', gift cards/vouchers, shoppers' rights information and a poster campaign in MABS centres.
- Record traffic to online information. The agency's websites received record traffic in 2009, with over 358,000 visits to the three sites: consumerconnect.ie, nca.ie and consumerproperty.ie.
- Significant calls to the helpline. Despite a decline in queries to the helpline (attributable to the fall in advertising activity and possible re-direction of increased traffic to the website), figures remain significant. The Agency dealt with almost 65,000 queries, complaints and requests for information (over 63,000 came through the helpline alone). 62% of queries related to the Sale of Goods and Supply of Services Act, 1980 and the top 3 sectors of queries related to vehicles, clothing/footwear/accessories and home entertainment.
- The development of a new publication. 'A consumer guide to the safety of window blinds' was published.
- The development of the research function within the agency. The Agency's comprehensive market research continued in '09 with an ongoing assessment of consumer rights, empowerment, complaints, switching and shopping habits. New research was also conducted on 'household budgeting' and the 'impact of the recession'.
- Product safety. The agency has had a particularly busy year in relation to product safety issues. 336 product safety-related queries resulted in follow up investigation and action by the agency. Product safety issued included: risk of carbon monoxide poisoning from particular makes/models of gas cookers, potential fire risks from particular immersion water heaters. And other product safety issues related to: semi-automatic rifles, decorative electrical lanterns, jumbo gas regulators, swim armbands, pushchairs, cords/drawstrings on children's clothes and window blinds.
Learn more
Download the full 2009 annual report
Get more information on the enforcement tools available to the National Consumer Agency
Read or download the most recent consumer protection list