The Gazette 1978

The Consumer Information Act, 1978 By EDWARD DONELAN, M.A., Barrister-at-Law (Vice-Chainnan, Consumers Association of Ireland)

The Act does not deal with every kind of untrue statement which might be made about prices; claims that Joe's is the cheapest restaurant in town or Whito washes whitest are not covered by the Act even if they are untrue because they are statements of opinion rather than fact. False statements about goods, services or facilities (Section 6) The Act covers statements about one or more of a number of matters and makes it an offence to make false statements about the provision of services, accommo- dation or facilities; their nature, the time at which they are provided; who provides them; the examination, approval or evaluation by any person; where accommodation is provided or what amenities it has. In order to give rise to an offence the statement must be false to a material degree; there is nothing wrong with a mere trifling inaccuracy. Spoken and written statements in advertisements are covered by the Act. Not every statement about services which turns out to be wrong is covered by the Act. A trader commits an offence only if the statement is false when it is made or makes it recklessly not caring whether it is true or false. If a trader offers to provide a service, but fails to do so, you may have an action for breach of contract but the trader is not going to be prosecuted for a breach of the Consumer Information Act. Misleading advertisements (Section 8) The Act makes it an offence to publish an advertise- ment which is likely to mislead and thereby cause loss or damage to a consumer. The loss must be to a "material degree" and so inconveniences caused by misleading advertisements are not an offence under the Act. Supervision (Section 9) The Consumer Information Act creates the post of Director of Consumer Affairs whose functions, when he is appointed, shall include: (a) keeping under review practices and proposed practices by trade in relation to advertising and providing information to members of the public about goods and services; (b) carrying out examinations of such practices; (c) instituting court proceedings where all else fails; (d) providing information to consumers about the laws which affect their interests. It is hoped that the Director will be appointed in the next few months and I hope he will have an office which is accessible to the general public. I believe the most useful function this Act can serve will be to encourage higher standards of honesty in traders' descriptions and to develop a sense of responsibility whereby advertisers will be seen to provide consumers with more information to help them shop wisely. I hope that it will not be necessary to bring a number of prosecutions and feel that the way the Act will work best is if people know about its exis- tence and complain vehemently if its provisions are not respected in the market place.

The Consumer Information Act, 1978, came into force on 22nd February 1978. It amends and updates the Merchandise Marks Acts (1887-1972) which were concerned with trades misdescriptions in general. What the Act does The purpose of this Act in particular is to ensure that people tell the truth in describing prices, goods and services. The Act makes it a criminal offence for a trader to: (a) apply a false description to any goods including land; (b) supply or offer to supply any goods to which a false trade description is applied; (c) give false indications about the price of goods; (d) make false statements about the provision of any services, accommodation or facilities. (Section 2) False Trade Descriptions (Section 2) For the purposs of this Act, a trade description is an indication as to any one of a number of matters listed in the Act. For example, the quantity or size of goods (this sheet is 70" x 90"); how the goods were made or processed ("hand stitched"); what the goods were made of ('French velvet"); their fitness for purpose, strength, performance or accuracy ("unbreakable"); any other physical characteristics which they possess ("fitted with disc brakes"); a statement that the goods have been tested or approved by any person ("approved by the Department of Health"); a statement as to when the goods were made ("nineteenth-century desk"), or who made them ("Picasso print"). This indication must be false to a material degree for it to be an offence: it is not enough for it to contain a quite insignificant inaccuracy. It must be applied to all the goods in question, whether in writing or by means of a symbol or other marking on the goods themselves, or on containers, labels, showcards, in advertisements or in oral statements about the goods. False Indications of price (Section 7) The Act covers false comparisons with a "recommended price"; false comparisons between a trader's current selling price and his own previous price; and indications that the price at which the goods are offered are less than it really is in fact. A trader who compares his price with a recommended price must compare it with a price which a manufacturer really has recommended generally for retail sale in that area where the goods are offered, unless he can make it clear that he is referring to a different kind of recom- mendation. Sales (Section 7) A trader who indicates that a higher price has been charged must have offered the goods for sale at the higher price for 28 days in the preceding three months, unless he expressly indicates to the contrary; e.g. coat for sale reduced from £50 to £30. The coat must have been on sale at £50 for 28 days during the previous six months, otherwise the trader commits an offence under the Act.

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