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Consumer Rights Directive comes into effect in Ireland printable version

13 Jun 2014: posted by the editor - Business, Ireland

The Consumer Rights Directive comes into effect in Ireland from tomorrow, Saturday 14 June 2014.

The EU Directive, which is implemented in Ireland by way of the European Union (Consumer Information, Cancellation and Other Rights) Regulations 2013, will among other things:

Ban pre-ticked boxes - Where consumers wish to avail of additional services offered by a trader (such as insurance or car hire), they must explicitly opt in by selecting the appropriate box

Ban surcharges - Traders will not be permitted to charge card fees that exceed the actual cost of processing a debit or credit card payment

Ban hidden fees and charges - Traders will be obliged to disclose the total cost of a good or service, including any extra fees, before the consumer places an order. Online shoppers will not have to pay charges or additional costs if they were not properly informed about these in advance

Provide better cancellation rights - the Directive provides for an extension of the "cooling-off" period. Under existing legislation, consumers had at least seven days from the date on which they received an online order to cancel the contract and receive a refund without having to give a reason. The new legislation extends this period to 14 days.

Announcing the implementation of the Directive, Minister Jobs, Enterprise and Innovation Richard Bruton said: "Transactions involving a consumer on the one hand and a business on the other are inherently unbalanced, and government has an obligation to regulate where the consumer needs protection. The rapid growth of online trading poses particular challenges, and it is important that our laws evolve quickly to provide proper protections for consumers in these arenas.

"Irish consumers spend more than €4billion online every year, and this figure is projected to grow rapidly in the coming decade. The laws coming into effect today will make a major difference to the protections available to those consumers. Pre-ticked boxes will be banned, meaning that consumers will only purchase the goods and services that they have chosen. Fees imposed for making payments will not exceed the cost to the retailer of processing those payments. Cancellation and refund rights will be vastly improved. Overall, there will be much greater transparency and fairness in online purchases as a result of these laws.

"This forms part of a broader reform of consumer laws being undertaken by my Department, in order to ensure that laws written to protect consumers in a world dominated by face-to-face retail are fully updated to protect consumers in the modern world".

* The main provisions of the EU-wide law are as follows:

Better cancellation rights: The Directive provides for an extension of the "cooling-off" period. Under existing legislation, consumers had at least seven days from the date on which they received an online order to cancel the contract and receive a refund without having to give a reason. The new legislation extends this period to 14 days.

Right of withdrawal for digital purchases: Consumers who purchase music, films, and books in digital format can avail of the cooling-off period for the first time. However, this will only extend up to the moment the consumer consents to the actual downloading process beginning. Consumers must also be advised in advance as to the compatibility of digital content and any technical restrictions (such as a limit on the consumer's right to copy the content).

Ban on hidden fees and charges: Traders will be obliged to disclose the total cost of a good or service, including any extra fees, before the consumer places an order. Online shoppers will not have to pay charges or additional costs if they were not properly informed about these in advance.

Ban on surcharges: Traders will not be permitted to charge card fees that exceed the actual cost of processing a debit or credit card payment. In addition, where the trader operates a hotline, it will no longer be permissible to charge more than the basic telephone rate for calls.

Clearer information on the cost of returning unwanted goods: Where consumers avail of the cooling-off period, they must cover the cost of returning the unwanted items. Under the new Directive, traders must clearly inform consumers of this beforehand; otherwise they will have to cover the return costs themselves. If the items are bulky or difficult to transport, the trader must also provide an estimate of return costs in advance so that the consumer can make an informed decision.

Ban on pre-ticked boxes: The new Directive bans pre-ticked boxes across the EU. Where consumers wish to avail of additional services offered by a trader (such as insurance or car hire), they must explicitly opt in by selecting the appropriate box. Traders will no longer be permitted to tick these boxes in advance. This aims to ensure that consumers do not unwittingly pay for services that they do not need.

Tags: on-line shopping, consumer rights

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