Dara Calleary (Mayo, Fianna Fail)
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Táim an-sásta a bheith sa Seanad chun an Bille tábhachtach seo a mholadh. I am delighted to have the opportunity to introduce the Consumer Rights Bill 2022 to Seanad Éireann. This Bill represents the most significant reform of consumer law in over 40 years. It consolidates and updates existing legislation on the sale of goods and supply of services, in particular to ensure that it is fit for the modern digital age.

A core feature of my role in the Department is to ensure we have a fair and effective market that works for both businesses and consumers. This Bill does that by strengthening protections for consumers while also creating clearer rules for traders. Not only does the Bill modernise domestic law, but it also transposes two EU directives on contracts for the sale of goods and contracts for the supply of digital content and digital services. In addition, it transposes most of another EU directive, the better enforcement and modernisation directive.The Bill has received significant consideration due to its complexity. I want particularly to acknowledge the work of former Ministers, Deputies Richard Bruton and Robert Troy, during their time in this Department in developing and progressing this legislation. The Bill has passed pre-legislative scrutiny and has come through the Dáil. I acknowledge the cross-party support for its provisions. This speaks to its importance. That is why I am particularly pleased to introduce the Bill to Seanad Éireann today.

The purpose of the Bill is to bring about several positive changes for consumers, including stronger consumer rights, protections and remedies across a number of key areas. For instance, it gives people stronger consumer rights when it comes to how problems with goods or services are resolved. Instead of just exchange, refund or repair, customers will also be entitled to agree a price reduction on faulty goods and flawed services. They will also be entitled to withhold payment for goods or services that have been partially paid for if they are not satisfied with the quality of the item or service received. Critically the Bill stipulates that any form of redress must be free of charge and must be carried out as soon as possible.

The Bill brings together in one statute provisions that are currently contained in diverse pieces of law and some that have never been regulated before. In existing legislation consumers have no rights to remedies when services are not provided as expected and agreed, for example, legal services or building services. The Consumer Rights Bill closes that gap. It also includes new protections for consumers in regard to digital content such as audio and video files, computer games and digital services such as streaming services, cloud computing and social media. These new digital rights include the right to a full refund, exchange or repair when a good or service is not as described nor fit for purpose.

Consumers will be entitled to any upgrades to the product or service that is needed to ensure that it continues to work as expected and agreed free of charge. The Bill contains a new blacklist of contract terms and conditions that are automatically deemed to be unfair and which should not be included in any consumer contract, for example, where the agreement is only legally binding for the consumer and not the trader. Businesses will be required to set out clearly a description of the goods or services being provided, the total price and cost of delivery before entering a contract with a consumer.

Furthermore the Bill gives extra enforcement powers to the Competition and Consumer Protection Commission, CCPC, which is the body responsible for enforcing consumer law in Ireland. These new powers mean that when traders engage in misleading and aggressive commercial practices like posting fake reviews or where they do not provide the remedies or reimbursements that consumers are entitled to, the CCPC can take action such as issuing compliance notices or applying to the Circuit Court or the High Court for a declaration or injunction. It will also provide enforcement powers to the Commission for Communications Regulation, ComReg, in regard to electronic communication services and premium rate services, and to the Central Bank with regard to financial services.

The date given by the European Commission for transposing these directives was July 2021 for the sale of goods directive and the digital content directive, and November 2021 for the better enforcement and modernisation directive. Unfortunately we, along with several other member states, did not meet these deadlines. As seen and as noted through earlier debates this Bill is a complex and highly technical piece of legislation which required significant consideration and redrafting. The focus has been to make sure that we get it right even if that meant taking a little more time. I am confident therefore that the Bill presented today is robust, well-considered and fit for purpose.

I now turn to the main provisions of the Bill. This Bill contains 14 Parts and six Schedules. It is important to point out at this juncture that with very limited exceptions Parts 2, 3 and 5 transpose maximum harmonisation directives which give little or no discretion as to their implementation.

Part 1 deals with matters common to legislation. It also contains generally applying provisions relating to the making of contracts, preventing traders from attempting to restrict the rights of the consumer and the jurisdiction of the court to order remedies. Part 2 focuses on the rights of consumers under sales contracts and on the remedies available to consumers where goods do not conform to those contracts. It gives effect to the 2019 sale of goods directive and incorporates the provisions applying to consumer contracts under the Sale of Goods Act 1893. It also deals with commercial guarantees.

Part 3 gives effect to the digital content directive on certain aspects concerning contracts for the supply of digital content and digital services. Its provisions set out the rights that apply under such contracts and the remedies that apply for the infringement of those rights.

Part 4 will replace the provisions of the Sale of Goods and Supply of Services Act 1980 that relate to service contracts. It expands the rights of consumers in respect of such contracts and establishes a scheme of remedies that will apply where a service does not conform to those rights.

Part 5 re-enacts, with substantial amendment, the provisions on consumer information and cancellation rights contained in the consumer rights directive. In addition, it repeats rights in the directive relating to payment fees, additional payments, charges for calls to consumer helplines and inertia selling.

Part 6 makes a number of important changes to the provisions of the European Communities (Unfair Terms in Consumer Contracts) Regulations 1995, which transposed the unfair terms in consumer contracts directive. It also gives effect to the new penalty provisions inserted in the directive by the better enforcement and modernisation directive.

Part 7 sets out the enforcement powers and penalties under the Bill. The CCPC will have enforcement responsibilities for consumer contracts under all Parts of this legislation. The Central Bank will continue to have an enforcement function under Part 7 and the Commission for Communications Regulation, ComReg, will have an enforcement function under Parts 5 to 7.

Part 8 contains the various amendments to the Consumer Credit Act 1995 that are required to ensure that the protections and remedies available to consumers in respect of the purchase of goods will be available irrespective of whether the consumer pays the price in a one-off payment or by way of instalment or other type of deferred payment.

Part 9 contains the various amendments to the Consumer Protection Act 2007 that are required to transpose amendments to the unfair commercial practices directive made by the better enforcement and modernisation direction. These amendments will extend and enhance the enforcement measures available to the CCPC.

Parts 10 to 14 provide for a number of amendments to other enactments, such as the Central Bank Act 1942, the Communications Regulation Act 2002, the Competition and Consumer Protection Act 2014 and the Companies Act 2014.

Schedule 1 sets out repeals and revocations. Schedule 2 sets out the information to be provided by the trader prior to the conclusion of an on-premises contract. Schedule 3 sets out the information to be provided by the trader prior to the conclusion of an off-premises contract or distance contract. Schedule 4 provides the information concerning the exercise of the right to cancel and includes the model cancellation form. Schedule 5 deals with contract terms that are presumed unfair. Schedule 6 sets out the amendments to Acts and statutory instruments.

A comprehensive consolidated consumer rights Act will provide a legislative framework that is more appropriate to present-day conditions and requirements, is simpler to understand and navigate, creates clearer rules for businesses and strengthens consumer rights. Therefore, this legislation is good news for consumers. It is equally good news for businesses because it recognises the behaviour of responsible traders and puts them on a legislative footing. It also ensures that regulators like the CCPC and ComReg have the powers necessary to sanction businesses that do not uphold the standards that this legislation will demand.

I thank everyone who has made an input to the Bill to date. I thank the officials in my Department for the considerable work that has gone into the Bill. I look forward to further input during this debate and I commend the Bill to the House.

Eugene Murphy (Fianna Fail)
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I omitted to welcome the Minister of State's officials to the House. They are welcome.

Ollie Crowe (Fianna Fail)
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I welcome the Minister of State to the House.

I welcome the Bill, which all Senators should acknowledge represents the greatest reform of consumer law in more than 40 years. It consolidates and updates existing legislation on the sale of goods and supply of services in order to ensure that our legislation is fit for purpose in the modern digital age. Consumers will have the same rights and protections in respect of digital content and services, such as streaming, downloads and cloud products, as they do with traditional products and services. This is only correct.New digital rights include the right to full refund, exchange or repair when goods or services are not as described or not fit for purpose. Consumers will be entitled free of charge to any upgrades to the product or service that are needed to ensure the goods continue to work as expected.

We must ensure we have a fair and effective market that works for both businesses and consumers. This Bill contributes to that aim by strengthening protections for consumers while also creating clear rules for our businesses. The Bill also includes a new blacklist of contract terms and conditions that are automatically deemed to be unfair and which should not be included in any consumer contract. This includes instances where the agreement is only legally binding for the consumer and not for the trader, or where the trader can decide to change the terms and conditions of the contract without informing the consumer in advance. Businesses will be required to set out clearly a description of the goods or services being provided and the total price and costs of delivery before entering into a contract with the consumer.

Furthermore, the Bill gives extra enforcement powers to the Competition and Consumer Protection Commission, the body responsible for enforcing consumer law in this country. These new powers mean that where traders engage in misleading and aggressive commercial practices, such as posting fake reviews, or where they do not provide the remedies or reimbursement to which consumers are entitled, the CCPC can take action such as issuing compliance notices or applying to the Circuit Court or High Court for a declaration or an injunction. It will also provide enforcement powers to ComReg with regard to electronic communication services and premium rate services and to the Central Bank with regard to financial services.

The crackdown on fake reviews the Bill will provide for is most welcome because it is needed. Senators will be aware of how manipulative such fake reviews can be to consumers, particularly now in this digital age where, for far too long, a very small minority of companies have been able to get away with fake reviews that make outrageous claims and promises that wildly mislead consumers. Similarly, Senators will be aware of cases over the years of businesses leaving reviews on the products of their competitors. Not alone is this unjust on the vast majority of businesses that act in the right way, but it also serves to undermine confidence in reviews in the wider domain, which again affects consumers negatively. The Bill provides a mechanism whereby companies that engage in misleading and aggressive commercial practices such as fake reviews can be subject to fines imposed by the courts following enforcement action taken by the CCPC. This step is overdue and much needed. It is welcomed by the vast majority of businesses whose behaviour is above board.

It should also be acknowledged that the response of stakeholders to this legislation has been very positive, with the Bill being warmly welcomed by both the CCPC and Digital Business Ireland. It is the most significant reform of consumer law in decades. It will provide the enhanced protections necessary in this digital age and it should be welcomed by all.

Eugene Murphy (Fianna Fail)
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We always welcome visitors to the Gallery. I understand there is a group from Ógra Sinn Féin here. I welcome them, as we welcome all young people from all political parties, and hope they enjoy their visit.

Emer Currie (Fine Gael)
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I am standing in for Senator Ahearn who has been leading on this legislation in the joint committee. As the Minister of State noted, this is a good day for consumer rights with regard to goods and services, and also digital services. I hope today is the day our consumer rights catch up with the digital transformation. This Bill has been a long time in the making. As the Minister of State said, the former Minister, Deputy Bruton, the former Minister of State, Deputy Troy, and now the Minister of State himself have all worked on this legislation, which is the most significant Bill in this area in four decades.

The Bill substantially reforms and consolidates existing consumer protection legislation. It is important that it does this for the consumer but it also brings clarity to businesses by bringing all of the existing provisions under a single Act, while at the same introducing new and enhanced consumer protection measures. In 2011, the sales law review group concluded that the legislative framework for consumer contract rights, in addition to the EU directives in this area, was becoming very complex and contradictory in parts. This Bill will bring together the different legislation and also transpose the necessary EU directives, taking into consideration various aspects of consumer contracts.

The Minister of State outlined what the Bill proposes to do. Of most significance is that it provides a comprehensive and straightforward legal framework to regulate the main types of consumer contract, modernising existing consumer law and the EU directives. The Bill enhances the powers of the CCPC, which is very important. It extends enforcement powers to ComReg in relation to electronic communications and premium rate services and to the Central Bank in relation to financial services. It amends provisions off the Consumer Credit Act 1995 regarding hire purchase agreements and consumer hire agreements so that they mirror the rights provided for under sales contracts. Given the proliferation of various aspects of consumer contracts, I can only imagine what a complex process this has been.

Of the three EU directives from 2019, one covers contracts for the supply of digital content and digital services, another covers contracts for the sale of goods and the third is for the better enforcement and modernisation of EU consumer protection rules. Three of four parts of the third directive are included, dealing with unfair terms and consumer contracts, unfair commercial practices and consumer rights.

The Minister of State set out the benefits of this legislation, as wide and far-reaching as it is, in a concise and succinct way. It protects consumers with regard to the quantity, quality, durability and any other feature of the goods that were bought for the purpose for which they were bought. This means that the contracts must be honoured or reimbursement must be provided within 14 days. New protections for consumers are included for digital content and services.

As my colleague, Senator Crowe, pointed out, reviews and fake reviews are covered by the Bill. Consumer contracts for the supply of digital services have not previously been the subject of specific statutory regulation. Service contracts are also included and are obviously a very important part of consumer activity now. Consumer information and cancellation rights are also addressed, as are unfair terms in consumer contracts, including through a new blacklist of contract terms and conditions that are regarded as unfair and should not be included in consumer contracts. Unfair consumer practices are also covered, with additional protections provided against misleading and aggressive commercial practices and enforcement powers.The Minister of State has outlined various aspects of the Bill. I thank the Ministers who have worked on this and the committee for the Trojan work done over the years. As I said, it is a good day for consumer rights.

Eugene Murphy (Fianna Fail)
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Tá súil agam gurb í an Seanadóir Sherlock a bheidh ag caint ar an ábhar seo ar son an Seanadóír Mark Wall. Will Senator Sherlock be taking this speaking slot? Senator Mark Wall's name is on the list.

Marie Sherlock (Labour)
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Beidh mé. Tá brón orm faoi sin.

Eugene Murphy (Fianna Fail)
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It is not a problem.

Marie Sherlock (Labour)
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Cuirim fáilte roimh an Aire Stáit. I have not seen him since his appointment to his current role. I wish him the best in that regard.

I join with all Senators across the Chamber in welcoming the Bill. Online commerce has been with us for about a decade and a half and it has been very much the wild west with regard to consumer protection. Therefore, we welcome the Bill as an important and comprehensive step in protecting consumers in terms of online transactions. The merits of the Bill have been well articulated so I will cut to questions and concerns I have on its scope.

The first issue is the resourcing of the CCPC and ComReg in the enforcement of the new legislation that will be in place.While we have, by and large, well-established custom and practice for the bricks and mortar retail sector, there is much greater variability online and that has been proved by the queries that come into our offices. There will be a much greater requirement to have strong resources and for the CCPC to be well resourced to deal with the volume of queries that will be forthcoming, especially in the early years after the Bill is enacted. I would like to hear from the Minister of State on that.

The second element is where the online transactions take place. As I understand it, this is a Bill transposing an EU directive and which applies to commerce and online transactions taking place in this country. However, there is a fundamental question surrounding transactions on websites that purport to be located within this State but are actually located outside it.During the Second Stage debate on the Bill in the Dáil, Deputy Sherlock cited figures stating there are 309,953 .iedomains in existence. He added that "Only 278,042 of those are based in the Republic of Ireland, while 4,532 are based in Northern Ireland". Then there are 31,911 .ie domains located elsewhere. The question about the 36,000 domains located outside the Republic of Ireland is where the consumer rights of those who purchase good and services from them stand. I have had a number of people come to me and say they thought they had the security, safety and assurance of buying on a .ie domain only to then be hit with UK customs charges, goods going missing or fraud taking place. Those people have no recourse and it is not apparent they will have any under this Bill. If that is the case, then there is a large part of the jigsaw missing in the strengthening of online consumer protections.

I note the Minister of State's predecessor, Deputy Troy, responded in the Dáil that this was a matter for the Minister with responsibility for communications as it concerned regulation of .ie domains, but frankly, that is not good enough. We cannot have a Department talking about consumer protections and then pushing the regulation of the domains where the commercial activity takes place to another Department. We need to have joined-up thinking here. We are looking for a response from Government. If it cannot be from one Department, then it needs to come from two of them but we need a Government response on where the .ie domains stand. It is, as I said, the missing piece of the jigsaw where consumer protection is concerned, especially as people think they are buying within the Twenty-six Counties and sometimes they are not, unbeknownst to them.

My last point is on redress. There is now a strong range of redress options available in the event a good or service purchased online is not what it purported to be, those options being the right to refund, repair and exchange. However, there is an issue with the options provided to a consumer and especially the expectations about how long an electronic product or service should be expected to last. My colleagues Deputies Sherlock and Kelly submitted an amendment on Committee Stage in the Dáil to ensure consumers can rely on the products they buy to last a reasonable length of time so it is not just that you buy something and it falls apart and must be refunded or exchanged. Especially now when we want to promote a circular economy and ensure we are not just ditching products because they are faulty from the minute they are purchased, that right to repair is exceptionally important, as is an understanding of how long a product should last. I am not sure there is detail in the Bill as passed by the Dáil on that reasonable expectation about how long a product should last.

I would like to hear from the Minister of State on those issues. Other than that we welcome the Bill and look forward to its passage through this House.

Aisling Dolan (Fine Gael)
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I thank the Minister of State for coming in. It is great to see we are looking at consumer rights and at strengthening them. I heard the Minister of State's opening remarks and understand there have been delays and challenges around the fact it has been so complex and that this has been a key reason for the delays.

It is crucial we are looking at consumer rights. A section I wish to highlight is that it is going to be possible to get a price reduction on faulty goods and flawed services. When you are looking at something, you are looking at sale items and everything else, but when something is damaged and you are paying full price for it, it is going to be fantastic for consumers to be able to engage with the retailer on this, and the retailer has very clear guidance on this as well.

It has probably been mentioned but the challenge we have is with the return of goods or items and how we are managing waste. I am thinking of things like fast fashion and so on. Is there anything in this Bill we can look at around that sort of circular economy? Maybe it is outside the remit of this but when we are looking at repairing and at items that are faulty, instead of the exchange, refund and repair, are there other elements we could use to strengthen the options consumers have around the circular economy?

Another aspect I want to highlight is digital content and streaming services. The challenge we sometimes have is consumers are sometimes not aware of their rights. We are looking at an ombudsman for consumers, but when it comes to this, will there be a communications campaign once this Bill come through? Will there be a way for us to ensure consumers are aware we have these new rights? It is great to have them, but when people do not know about them, it is a challenge. Perhaps shops could have signage up that people can see when they are paying so they are aware of these new options.

I apologise but the last point I wanted to raise has gone out of my head.

Eugene Murphy (Fianna Fail)
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Níl aon duine eile le labhairt ach an tAire Stáit. He has ten minutes to reply, or even more if he wants it.

Dara Calleary (Mayo, Fianna Fail)
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Go raibh maith agat, a Chathaoirligh Gníomhaigh. I will not delay. I know all time is valuable here. I thank all Senators for their comments on the Bill and for their personal good wishes, which are all appreciated. I am grateful for the general broad support for the purpose of the Bill as well as some of the constructive debate on the finer details and the acknowledgement of the work that has been put in by the Department officials.

This legislation has the improvement of consumer protection at its heart and its enactment will be good overall for consumers and responsible traders alike, as Senator Crowe said. I am encouraged that while there may be some minor disagreement on particular areas, there is full agreement regarding the overarching principles. I will address a number of points which were raised throughout the debate. It is very clear this legislation is predominantly about transposing maximum harmonisation measures arising from EU directives and so we have no discretion in relation to their implementation. Other parts of the legislation are updating and consolidating consumer contract rights that are already in place.On the points made by Senator Ó Donnghaile, tuigim leasuithe an tSeanadóra agus a thuairim maidir le daoine a bhfuil Gaeilge acu agus an gá chun cosaint a thabhairt do na daoine sin sa Bhille. Níl tuiscint mhór agam ar an gcineál cosanta atá ag teastáil ón Seanadóir ach tá mé féin agus m’oifigigh oscailte roimh phlé ar na tuairimí atá aige roimh an chéad chéim eile. Aontaím go gcaithfimid Gaeilgeoirí a chosaint ach tá mé buartha go mbeidh costais bhreise ar ghnóthaí agus ar ghnóthaí beaga ach go háirithe. Tá mé ag iarraidh labhairt leis an Seanadóir agus bualadh leis leath bealaigh chun an ábhar seo a phlé ar dtús. Má táimid in ann aon rud a dhéanamh, déanfaimid é.

Bhí na Seanadóirí Ó Donnghaile, Sherlock agus Dolan ag iarraidh eolais ar acmhainní breise an Choimisiúin um Iomaíocht agus Cosaint Tomhaltóirí. The Senators inquired about extra resources and powers for the CCPC. Additional costs to facilitate the enhanced enforcement functions, and the communication of the new rights for consumers, have been factored into the budgetary and Estimates process. The CCPC has received an increase in its annual budget of 5.8%, which equates to an additional €1 million. Under this Government, the CCPC has seen its Exchequer funding increase by 71% over the last two years. I am confident that this will allow the CCPC to recruit additional staff to carry out its remit effectively under this legislation. My officials are in regular contact with the CCPC about an information campaign on the new resources in this Bill for consumers.

On the interaction between the various regulators that will have a role to play, the CCPC, ComReg and the Central Bank will continue to regulate their own sectors. These organisations already demonstrate strong collaboration in this space in the form of a memorandum of understanding and other agreements.

Senator Sherlock made a point about consumers purchasing from websites with a .iedomain. I assure the Senator that there is a whole-of-government response. The Department of the Environment, Climate and Communications is responsible for the registration of domains. Businesses must meet a number of requirements before they can get an .ieregistration, including a requirement to have offices in Ireland. The CCPC communicates with consumers on how to protect themselves regarding domains. We will contact the CCPC again following this debate to emphasise the communication element, particularly after the enactment of this Bill. I know that my predecessor, Deputy Troy, took on board what was said. I assure Senator Sherlock that my Department has looked at this matter with the other Department and the CCPC. We will continue to pursue the matter.

Senators Sherlock and Dolan mentioned issues that concern the circular economy. This Bill does not contain provisions that specifically relate to the circular economy beyond the opportunity, where feasible, for consumers to seek the repair of faulty goods. However, work is ongoing in the European Commission to empower consumers to make more sustainable consumption decisions and move towards a clean and green circular economy. This work involves proposals to nudge consumers and traders towards repair, as opposed to the replacement of faulty goods in the first instance. It also includes a proposal to amend existing directives to enhance consumer protection against unfair commercial practices that prevent sustainable purchases. An example of such practices is greenwashing, or the making of misleading environmental claims. Another example, and this follows on from the remarks made by Senators Dolan and Sherlock, is the phenomenon of early obsolescence, which is the premature failure of goods. We will continue to work with the Commission on that.

I thank everybody for their comments. I believe this Bill will enhance and solidify consumer rights. I thank all the Senators who participated in the debate this evening. I look forward to working with the Seanad on Committee and Report Stages so that we can get this Bill enacted as soon as possible.

Eugene Murphy (Fianna Fail)
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When is it proposed to take Committee Stage?

Ollie Crowe (Fianna Fail)
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Next Tuesday.

Eugene Murphy (Fianna Fail)
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Is that agreed? Agreed.