Business- consumers

Protecting the Consumer

Chapter 12

Revision Notes

WHAT IS A CONSUMER? A consumer is a person who buys goods and services for their own use.

CONSUMER RESPONSIBILITIES:

If something is too good to be true, it probably is. Caveat that emptor is a Latin phrase that means, ‘let the buyers beware’. This means that consumers need to use common sense when buying goods and services.

Consumers have the following responsibilities:

• To behave wisely when buying goods and services.

• To avoid impulsive buying and false economics.

• To shop around for the best value for money.

• To use products carefully and in accordance with the manufacturer’s instructions to avoid damaging them.

• To dispose of packaging responsibly, recycling when possible.

• To consider the environment and ethical impact of the products they consume. How will consumer choices impact people and the planet?

• To keep receipts as proof of purchase. This is important if faulty goods need to be returned. In some cases the receipt may be used to show the start date for the product guarantee.

• To know their legal rights. Despite being protected by law when purchasing goods, consumers should always be careful when buying goods and services.

LEGAL RIGHTS OF CONSUMERS

Consumers in Ireland are protected by two Irish laws:

• Sales of a goods and Supply of Services Act 1980

• Consumer protection Act 2007

They are also protected by EU laws, especially when buying online.

SALES OF GOODS AND SERVICES ACT 1980

This law helps to protect consumers by providing them with a number of rights when they buy goods from a trader. Note that this law does not protect consumers if they buy goods from another consumer or private individual. You need to be very careful when buying goods privately, either from people you know or from resale sites such as DoneDeal and Gumtree. You should inspect the goods very carefully, as you have no right to return the goods once you have paid for them. While the goods may be a little cheaper in a private sale, the risks of being scammed may be higher and you won't have any guarantee from the seller.

GOODS

According to the Sales of Goods and Supply of Services Act 1980, goods must:

• Be of Merchantable quality: the goods must be in fit condition to be sold. This means it must be safe, usable and of reasonable quality considering the price paid. For example, food must be edible up to the best before date. The standard of quality expected is linked to the price paid.

• Be fit for the purpose intended: the goods must do what you expect it to do: a kettle must boil water, a phone must be able to make and receive calls, etc. If a consumer specifies a particular use, the goods sold to them must be capable of meeting that purpose. For example, a consumer may ask for a camera they can use underwater. If the retailer sells them a camera that is not waterproof, it is clearly not fit for its intended purpose.

• Be as described: The good must match the description given by the salesperson, packaging, brochure or advertisement, e.g. a jacket described as waterproof must not let rain in.

• Match the sample shown: For certain items bought from a showroom, just a sample will be available, such as tiles, wallpaper, sofas and carpets. When the item is purchased, it must be the same as the item shown to you in the shop and you must have an opportunity to check this.

SERVICES

The law states that services must be:

• Provided by someone who has the necessary skills and qualifications: We expect providers who charge for services, such as doctors, solicitors, electricians, mechanics and hairdressers, to be suitably qualified.

• Provided with necessary care and attention: Sometimes being qualified to provide a service is not enough. Service providers must also carry out the work with proper care and attention.

• Carried out using goods or materials of merchantable quality: For example, if you pay a mechanic for a car service that includes a new batter, the service provider must ensure that the parts and materials meet your requirements and reflect the price paid. If they simply replace your old battery with another second-hand battery, they are acting illegally and you would be well within your rights to seek redress.

REDRESS

If you buy a damaged or faulty item from a trader, you are legally entitled to some form of redress (remedy or compensation). There are three kinds of redress, known as the 3 Rs:

• Repair: The item may be fixed free of charge. The repair must be permanent.

• Replacement: You can have the same or an alternative product that is free from damage or faults.

• Refund: You can receive the cost of the item back, either in cash or as money paid back to your debit or credit card.

Consumers are not entitled to a refund, repair or replacement if they simply change their mind or if they caused the fault through careless use of the good.

A credit note allows a customer who has returned faulty goods to choose other goods of the same value from that shop. If the shop offers you a credit note, you have the right to refuse it and ask for a refund. This is because a credit note limits you to buying something else (of equal value) from the same shop, which may not suit you. The longer you wait to make the complaint or the longer the fault occurs after you have bought the item, the less likely it is that you will receive a full refund; you may instead be offered a replacement, repair or partial refund.

RESPONSIBILITIES OF SELLER

The sales of goods and supply of services Act 1980 states that:

• Consumer complaints must be dealt with by the seller. You do not have to contact the manufacturer if an item is faulty. The retailer who sold you the item is responsible for dealing with your complaint, as your contract is with the shop.

• Retailers must respect consumers' rights when selling goods and services.

• Retailers cannot display signs that limit their responsibility, such as 'No refunds', 'No exchanges' or 'Credit notes only'.

• Guarantees and warranties are an addition to consumers' legal rights, but they do not replace them.

GUARANTEES AND WARRANTIES

Some manufacturers offer a guarantee. This is a written statement promising to replace or repair an item that develops a fault within a certain time period, such as one year. Some shops offer consumers extended warranties at an extra cost to cover item repairs after the manufacturer's guarantee has run out. Consumers do not have to buy an extended warranty.

• A guarantee is a promise by the manufacturer or company that it will sort out any problems with a product or service within a specific, fixed period of time. It is usually free. It cannot take away any of your legal rights as a consumer.

• An extended warranty is like an insurance policy, for which you must pay a premium. For an extra fee the manufacturer or retailer will extend the guarantee for a longer time period.

CONSUMER PROTECTION ACT 2007

The Consumer Protection Act 2007 tries to modernise and update consumer law in Ireland and it sets out what is expected of retailers. Unlike the Sale of Goods and Supply of Services Act, the Consumer Protection Act does not list any specific rights of consumers, but rather it provides protection for them in relation to misleading claims about goods, services and prices. It does this by making it illegal for retailers to act in particular ways.

MISLEADING CLAIMS

Businesses cannot make misleading claims about the business, their goods, services or prices. For example, a business cannot claim to be 'Ireland's oldest bakery unless it really is Ireland's oldest bakery.

For goods, claims about the performance of a product, the ingredients it contains and the weight of the item must be truthful. Examples of misleading claims are:

• A claim that a product will remove acne when there is no scientific proof that it can

• A claim that a product is made in Ireland when in fact it is made elsewhere.

For services, claims about the time, place and effect of a service must be truthful.

Examples of misleading claims are:

• A claim that a service is available throughout the country when it is available only in Cork and Galway

• A claim that a service will be provided within one hour (e.g. dry cleaning) if it will take longer

• A claim that mobile data is unlimited when there are extra charges if the consumer downloads more than 15GB of data.

For prices the recommended retail price (RRP), previous prices and actual prices must be truthful. When a retailer advertises a previous price, the item must have been on sale at that price in the same location for 28 consecutive days within the previous three months.

MISLEADING PRACTICES

The Consumer Protection Act protects consumers against unfair practices whether they buy from a local shop or a business within the EU.

The 3 main unfair commercial practices are:

• Misleading: When false or untrue information is used to deceive the consumer, such as a butcher displaying a sign indicating it is an award-winning business when it has not in fact won an award.

• Aggressive: When harassment, physical force or influence are used to force a consumer into buying a product, such as a mechanic carrying out more work on a car than was agreed in advance and refusing to return the car until the consumer pays for the work.

• Prohibited: The law lists 32 specific practices that

• are banned, for example:

>    Telling a consumer that they have won a prize

and then demanding payment to claim the prize.

>    Claiming a business is closing down when it is not.

DISTANCE SELLING AND CONSUMER RIGHTS

When you buy from a retailer located anywhere in the EU, you are protected by the EU Consumer Rights Directive. This Directive, which has been part of Irish law since 2014, protects consumers when buying online, over the phone or by mail order. It only applies to purchases from businesses located in the EU.

when you buy goods or services online, you have the right to:

• Clear and accurate information before you buy: Information such as the retailer's name and address; a description of the product or service; full details of price, including taxes, delivery and payment details; and details of your right to cancel and return goods should all be provided by the retailer in advance.

• A refund if your goods are not delivered: You should contact the seller to request a refund, which should be provided within 14 days. If you have paid by debit or credit card and the retailer fails to refund your money, you may be able to get your card provider to reverse the transaction. This is called chargeback.

• Return faulty goods: If you receive faulty goods, you have the same rights as if you had bought them in a shop. You should contact the retailer and return the goods in order to receive a refund. In this case, the retailer must cover the cost of returning the goods.

• Return the item because you have changed your mind: When you buy online, there's a 14-day cooling-off period. This means that within this period, you have the right to cancel an order for any reason, including a change of mind. If you choose to cancel the contract, you will usually have to pay the costs involved in returning the goods to the retailer. This must be done within 14 days of the cancellation date. The cooling-off period does not apply when goods have been made to order or have been personalised in some way, such as a hoodie with the customer's name on it. There is also no cooling-off period for perishable goods, such as fresh food; newspapers and magazines; CDs, DVDs and computer software that have been unsealed and used; gaming or lottery services; and services that have already commenced. For hygiene reasons, it is not possible to return swimwear or underwear.

• Cancel a service: The 14-day cooling-off period also applies to services, and retailers should inform you of your right to cancel. They should also make a copy of a standard cancellation form available to consumers.

• Cancel digital purchases: With digital purchases you must clearly agree to download or stream the content before you are liable for the costs. Retailers normally require you to do this on a website or via an app. If you have not already downloaded or streamed the content, you have a right to cancel a digital service. Consumers need to be careful when setting up accounts to purchase digital content. In many cases you need to provide the retailer with your debit or credit card details and can sign up to buy extra content with a single click. This means that anyone who has access to your account can download or stream material and you will be charged.

BEWARE

If you buy goods and services from businesses located outside the EU, you may not have the same level of protection, so it's very important to do some research and make sure you are dealing with a reputable business and have read all the terms and conditions relating to the purchase. In particular, you should consider what rights you will have if goods are not delivered or need to be returned. Purchases from retailers outside the EU may also be liable for VAT and customs duty.

MAKING A COMPLAINT

If you discover a fault with a product you have purchased, you will need to make a complaint to the retailer. There are a few simple steps you should follow:

1. Stop using the item immediately.

2. Take the item back to the shop and ask to speak to the manager. If you still have the receipt or other proof of purchase, bring this with you. If the manager is unavailable, ask to speak to the person in charge.

3. Explain the problem clearly, including details of purchase and when you noticed a problem with the item. Be polite but firm. Know your rights under the Sale of Goods and Supply of Services Act 1980.

4. IDecide which form of redress you would prefer: a refund, a replacement or a repair.

5. If the retailer does not offer a satisfactory result, you may need to send your complaint in writing (by letter or email), providing details of the problem. Keep a copy of all correspondence.

6. If the complaint is still not resolved, you may have to seek the advice of a third party, such as the Competition and Consumer Protection Commission or the Consumers' Association of Ireland (see pages 146-148).

7. If the complaint is still not resolved, make a claim through the Small Claims Procedure, if applicable.

8. Go to court.

WHEN IS A CONSUMER NOT VALID

As a consumer, you do not have any rights:

• If you change your mind about the purchase

• If a fault arises due to your misuse of a product

• If you were told about the fault when you bought the goods.

WRITING A LETTER OF COMPLAINT

Although it is best to complain politely and in person, sometimes you may have to make a complaint in writing. Letters usually follow a certain format:

1. Describe the details of the purchase.

2. Give the details of the complaint and show how the situation breaches consumer law.

3. Explain what remedy (redress) you want.

Keep a copy of the letter to refer to in the future in case you need to take the matter to a consumer agency. This will provide proof that you have already tried to resolve the complaint yourself.

OFFICE OF THE OMBUDSMAN

The Office of the Ombudsman is responsible for investigating complaints from people who feel they have been unfairly treated by a public body, such as:

• Government departments

• Local authorities

• The Health Service Executive (HSE)

• Publicly funded third-level institutions

• Private and public nursing homes.

The ombudsman is independent, impartial and provides a free service. Before making a complaint to the ombudsman, you must first complain to the relevant public body. If your complaint is not resolved to your satisfaction, you can then complain to the ombudsman. The ombudsman website contains information on how to make a complaint, information videos and sample cases.

SMALL CLAIMS PROCEDURE

The Small Claims Procedure is a quick, cheap and easy way to resolve a complaint about a faulty good or poor work by a service provider without having to hire a solicitor. If you have a complaint of this nature, you should first complain to the retailer or service provider yourself. If you cannot resolve the issue with them, you can go through the Small Claims Procedure. You can use the Small Claims Procedure if your claim is for €2,000 or less.

The application fee is €25, which you send along with your application form. You can complain online at the Courts Service website or by completing an application form and returning it to your local district court. The Small Claims Registrar will inform the business about your claim. The business has 15 days to reply. If they do not reply, the claim will be undisputed, which means that the district court will direct the business to pay you the amount claimed.

European Consumer Centre (ECC) Ireland

The ECC in Ireland supports consumers who have a problem with a supplier of goods or services in another EU member state. ECC Ireland provides a free information advice service and assistance to consumers on their rights in the EU. Part of an EU-wide network of consumer centres, it can help to resolve consumer disputes that arise in other member states of the EU. It does this by trying to solve the dispute directly with the provider of goods or services and, if this fails, it will refer the case to another dispute resolution body that will try to solve the dispute.

ECC Ireland also researches issues of consumer interest to raise awareness of emerging trends among consumers.