National Consumer Agency obtains its first prohibition order against furniture company
6 March 2009
The National Consumer Agency was granted a prohibition order by Dublin Circuit Court against a furniture retailer on 5 March 2009. This is the first prohibition order granted to the Agency under the Consumer Protection Act 2007 (CPA).
Judge Matthew Deery granted the order which prohibits Emerald Fine Furnishings Limited, 2 Convent Road, Dun Laoghaire, (currently operating in Rathcoole, Co Dublin and Ballincollig, Co. Cork) from committing or engaging in a number of acts or practices by advertising that:
(a) the business is closing down or moving premises when it is not,
(b) it is seeking to “clear the entire contents” of its showrooms when it is not closing down or moving premises,
(c) falsely representing that a product is for sale for a limited period or on a limited basis for a particular time,
(d) the product is on sale for the “last few days” or on sale at a certain price for the “last few days” when that was not so,
(e) providing misleading information to consumers in relation to the price of any product or the existence or nature of a specific price advantage in relation to any product, and
(f) representing to consumers that its products were available for what was described as a “why pay” price when the products were not on sale at that price.
Commenting on the court decision, the Chief Executive of the National Consumer Agency, Ms. Ann Fitzgerald said: “This is a landmark decision for the Agency and supports the Agency’s resolve in tackling unfair and misleading practices by businesses.
"Notwithstanding the current difficult environment for business, traders must not lose sight of the fact that they have a duty of care to their customers and should ensure that their advertising and sales promotions do not lead to consumers being mislead.”
During 2008 the National Consumer Agency had been monitoring the advertising practices of a number of furniture retailers to establish if they were complying with the requirements of the Consumer Protection Act 2007.
As part of this exercise the Agency became aware that Emerald Fine Furnishings Limited ran a range of media advertisements between July 2008 and November 2008, relating to claims of limited availability of products and representations that the business was closing down.
Misleading claims of this nature, which have the effect of encouraging consumers to make impulsive or unplanned, purchasing decisions, are prohibited by the CPA.
The NCA engaged with the company with a view to getting it to cease the misleading practices. However, as the issue was not resolved to the satisfaction of the Agency, it decided to apply to the Circuit Court for a prohibition order under section 71 of the Consumer Protection Act.
Ms Fitzgerald also called on consumers to be vigilant and contact the National Consumer Agency, if they become aware of any misleading practices, which could negatively impact on their right to make informed decisions. The Agency may be contacted at 1890 432432 or www.consumerconnect.ie