Consumer Rights, Protections, and Globalization

Consumer Rights and Responsibilities

• A consumer is someone who buys goods and services for their own use.
• A good consumer should:
  • Know their rights and responsibilities.
  • Shop around to compare quality and price.
  • Be informed to avoid impulse buying.
  • Be aware of the impact of their choices on people and the environment.
  • Keep proof of purchase.
  • Know where to go for help and advice.

Consumer Protection Act 2007

• Protects consumers from false or misleading claims.
• Covers:
  • Information.
  • Prices.
  • Anti-consumer practices.
  • Advertising.

Information

• Must not be false or misleading.
• Claims about ingredients, weight, calories, etc., must be accurate. For example, stating an item contains $30$ grams when it only contains $28$ grams is illegal.

Prices

• Must not be false or misleading.
• If a price is advertised as reduced, it must have been the previous price for $28$ consecutive days in the past $3$ months.
• Total prices must be stated clearly with no hidden extras.

Anti-Consumer Practices

• Misleading, unfair, and aggressive trading practices are illegal.
• Sellers cannot make false claims or pressure customers.
• For example, a retailer cannot advertise a closing down sale if they are not closing down.

Advertising

• Must not mislead consumers with false claims.
• Applies to notices in shops and claims made by retail staff.

Competition and Consumer Protection Act 2014

• Overseen by the Competition and Consumer Protection Commission (CCPC).
• Competition is a rivalry between sellers to win consumers' business.
• Main functions of the CCPC:
  • Enforcing product safety regulations and warning consumers about dangerous products.
  • Providing information to consumers.
  • Ensuring fair competition.

Shopping Online

• Distance selling: Sale of goods and services not in person.
• E-commerce: Sale and purchase of goods and services on the Internet.

Benefits

• Convenience.
• More choice.
• Often cheaper.
• No pressure from sales assistants.
• Open 24/7.
• Detailed product information and reviews.
• Proof of purchase stored electronically.

Risks

• Ease of purchase can lead to impulse buying and debt.
• Physical shops may close.
• Local retailers can offer on-the-spot discounts.
• Consumers can't examine goods before purchase.
• Waiting for delivery.
• Preference for in-person interaction, especially for expensive purchases.
• Online shopping frauds and security concerns.

Consumer Rights When Buying Online

• Consumer laws of the country the goods are being sent from apply.
• EU or international law might apply.

Buying Online Inside the EU

• Directive on Consumer Rights (2014) introduces consumer rules that apply to all EU countries.
• Cooling-off period of $14$ days to cancel the order for any reason.

Making a Complaint

• If goods or services do not comply with the law, you can make a complaint.
• Should include:
  • Date of purchase.
  • Information about the item purchased.
  • Cost and description.
  • Details of the problem and how it breaks consumer law.
  • Redress remedy you are seeking.
  • Your contact details.
  • Attach proof of purchase.

Buying Online Outside the EU

• Directive on Consumer Rights does not apply.
• Ensure the website is reputable, read terms and conditions carefully.
• VAT and customs duties may apply if the purchase exceeds $€150$.

CCPC

• Competition and Consumer Protection Commission.
• Investigates businesses breaking consumer and competition laws.
• Formed on 10/31/2014, from the joining of the Competition Authority and the National Consumer Agency.
• The Competition and Consumer Protection Act 2014 came into force on that date.

Consumer Protection Agencies

• Trade associations
• The Office of the Ombudsman
• The Competition and Consumer Protection Commission
• The Small Claims Procedure
• The Consumers Association of Ireland
• The Advertising Standards Authority of Ireland
• The European Consumer Centre Ireland (ECC)
• The Commission of Communication Regulations (ComReg)
• The Commission for Regulation of Utilities (CRU)
• Citizens Information

Trade Associations

• Investigate and try to sort out problems in a specific industry.
• Examples: Association of Electric Contractors Ireland, Irish Pharmaceutical Healthcare Association, Irish Travel Agent Association, Retail Jewellers of Ireland.

Small Claims Procedure

• Offers a quick and inexpensive way to settle disputes legally without a solicitor.
• A district court judge will listen to both sides and make a decision.
• The consumer has to try and solve the issue themselves before using the procedure.
• The maximum amount of compensation awarded is $€2,000$.

Consumers Association of Ireland (CAI)

• Voluntary advice and information service.
• Campaigns for improved consumer laws.
• Publishes a magazine called Consumers Choice.

Commission for Communications Regulations (ComReg)

• Regulates electronic communication and postal services.
• Consumers can contact ComReg for complaints about mobile/home phone providers, Internet broadband providers, or about mail services.
• Consumers must try to sort the problem out themselves first.
• If they fail, ComReg will contact the provider on their behalf.

Commission for Regulation of Utilities (CRU)

• Gives advice and information to consumers on dealing with energy and water suppliers.
• Consumers must first log their complaint about the supplier, and the CRU can investigate the issue.
• Makes legally binding decisions.

Advertising Standards Authority of Ireland (ASAI)

• Promotes good advertising standards to protect consumers from dishonest and illegal marketing.

European Consumer Centre (ECC) Ireland

• Gives Irish consumers free information and advice on dealing with retailers and service providers from other EU member states.
• Especially valuable for online shoppers buying goods from outside Ireland.

Citizens Information

• Provides information on the rights and entitlements of Irish residents, including consumer affairs.

Globalization

• How countries exchange goods, services, and ideas.
• Made easier by:
  • Developments in technology.
  • Improved travel infrastructures.
  • Government agreements to reduce taxes and import costs.
  • The World Trade Organization.

Benefits

• Wider choice of goods and services at competitive prices.
• Sharing of new ideas, experiences, and cultures.
• Global businesses pay taxes and improve commercial life.
• Creates employment: Apple employs approximately 6,000 people in Ireland.
• Irish businesses have access to wider markets, increasing profits.
• Governments, scientists, and pharmaceuticals companies can share important health information discoveries and medication.

Risks

• Environmental impact from transporting goods long distances.
• Cities and towns losing their unique identities.
• Global chains taking over the high street.
• Large global companies abusing their power.
• Globalization can lead to inequality, enriching developed countries while less developed countries are exploited for raw materials and labor.
• Irish businesses may find it difficult to compete against large global corporations.
• Global movement means disease can spread around the world quickly.

Ethical Consumerism

• Ethics: Acting based on whether something is right or wrong.
• Business ethics: Moral choices made by a business.

Sustainability and the Consumer

• Sustainable development meets the needs of the present without stopping future generations from meeting their need.