Written answers

Tuesday, 16 February 2010

Department of Enterprise, Trade and Employment

Consumer Protection

9:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 174: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her views on the introduction of legislation governing vouchers with unfair expiry dates in view of the European Commission's response to a person (details supplied). [7972/10]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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As advised in the European Commission's response referred to by the Deputy, the Unfair Commercial Practices Directive (No. 2005/29/EC refers) harmonises the laws in member states on unfair commercial practices affecting the economic interests of consumers. The Directive, which was transposed into Irish law by the Consumer Protection Act 2007, provides consumers with a general protection against unfair commercial practices, including misleading and aggressive practices, as well as protections against over 30 specific practices, which the Directive has deemed to be unfair in all circumstances.

The Deputy in referring to vouchers with unfair expiry dates has not explained what specifically he means by an unfair expiry date. Insofar as the Consumer Protection Act is concerned, the Act provides that a commercial practice is unfair if it is contrary to the general principle of good faith in the trader's field of activity, the standard of skill and care that a trader may reasonably be expected to exercise and would be likely to cause an appreciable impairment of the average consumer's ability to make an informed transactional decision and to make a transactional decision he would not otherwise make. The Act further provides that in determining whether a commercial practice is unfair, the commercial practice shall be considered in its factual context, taking account of all its features and circumstances.

In addition to providing a general prohibition on unfair commercial practices, the Act also prohibits traders from engaging in misleading commercial practices, including practices which involve the concealment or omission of material information that the average consumer would need to make an informed transactional decision and which could cause the average consumer to make a transactional decision he would not otherwise make. Accordingly if the Deputy is aware of instances of traders selling gift vouchers by means of false representation, such as incorrect information in relation to the date of expiry of the voucher or by the omission/concealment of material information, such as the date of expiry of the voucher or if he is of the view that the sale of particular vouchers is unfair having regard to the criteria previously mentioned, he may wish to bring such instances to the attention of the National Consumer Agency who are responsible for enforcing the provisions of the Consumer Protection Act 2007.

The European Commission in the reply cited by the Deputy referred to the maximum harmonization nature of the Unfair Commercial Practices Directive. As pointed out by the Commission, it was not open to Ireland in transposing the Directive to adopt stricter rules than those provided for in the Directive. It was for this reason that the Government was not in a position to support the Consumer Protection (Gift Vouchers) Bill 2009, which sought to unilaterally extend the list of practices prohibited in all circumstances by the addition of a provision prohibiting the sale of gift vouchers where the redemption period from the date of sale of the voucher was less than 5 years. Notwithstanding the strictures of maximum harmonization, the Government, as advised in the second stage debate on the aforementioned Bill in the Seanad, is concerned that the terms and conditions attaching to the sale of gift vouchers are as transparent as possible. Accordingly my Department is currently examining the possibility of making Regulations under the Consumer Protection Act 2007, which would require that specific information be given in relation to the terms and conditions attaching to the sale or the advertisement for sale of gift vouchers, particularly in relation to the redemption periods/conditions attaching to the voucher. Insofar as the reference in the Commission's reply to the Proposal for a Directive on Consumer Rights is concerned, my Department is coordinating Ireland's position in the discussions on this measure. I would wish to assure the Deputy that Ireland would fully support the inclusion of any appropriate and proportionate measures in this proposal which would build on the existing levels of consumer protection law in this area.

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