Dara Calleary (Mayo, Fianna Fail)
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In general terms, one of the purposes of the Consumer Rights Act 2022, which applies to contracts concluded after the commencement of the Act on 29 November 2022, is to strengthen consumer rights and provide remedies in relation to service contracts. Consumers rights have been broadened and strengthened regarding the quality and fitness for purpose of the full range of non-digital services and, for the first time, provides for remedies where the services supplied by providers do not comply with those quality and other standards.

Where a service does not meet the quality standards set out in the Act, the consumer will have the right to have it brought up to that standard free of charge, within a reasonable time and without any significant or unreasonable inconvenience to the consumer.

In some circumstances, the consumer will have the right to a price reduction or to end the contract and receive a refund of the price, including where -

(a)the trader has failed to bring the service into line with the Act

(b) the same or a different issue occurs despite the trader’s attempt to bring the service up to the required standard

(c)the issue is of such a serious nature that an immediate price reduction or the ending of the contract is the best option for the consumer.

If a consumer decides to end the contract, the trader must refund all payments already made under the contract no later than 14 days from the date the trader was informed of the consumer’s decision to end the contract.

Where the trader does not provide a remedy or reimbursement to which the consumer is entitled, the Competition and Consumer Protection Commission (CCPC) has the power to take enforcement action.

Alternatively, there are a number of other remedies available to the consumer, including claiming damages or seeking to recover money paid to the trader for a service that does not comply with the requirements of the Act. Also, the Small Claims Process (SCP) can accept cases up to the value of €2,000 and further information on the Small Claims Procedure, is available on the Competition and Consumer Protection Commission (CCPC) website, ccpc.ie.

In situations where a business has ceased trading, a consumer may be deemed an unsecured creditor of the business, ranking behind secured creditors like Revenue, employees who are owed wages, and banks that are owed money. Consumer legislation will not apply as the company the consumer has a contract with, no longer exists, therefore there may be no legal entity for the consumer to claim from.

In such cases, it is recommended that consumers contact the Companies Registration Office (CRO) to check the current trading status of the business. The CRO is the central repository of public statutory information on Irish companies and business names and may be able to provide the consumer with information such as the liquidator’s details if they have gone into liquidation, whether the business was a subsidiary of a larger company, details of a parent company or a possible substitute company.

If the consumer paid for the service by card, they may be able to request a chargeback through their card provider.

Otherwise, the consumer may wish to seek independent legal advice.

The CCPC website contains some advice for consumers on how to limit the risk of financial loss in situations like this: www.ccpc.ie/consumers/shopping/companies-going-out-of-business/

I am aware that there have been previous questions in relation to the closure of an orthodontic clinic in Galway and that this matter may be before the Courts and or professional bodies. In this regard, my Department has no comment in a specific case before the Courts or other professional bodies.