Analysis: the new Consumer Rights Act gives Irish consumers new protections when it comes to buying digital goods and services
Christmas is a busy time for consumer spending, with each Irish household spending an estimated €978 more in December than they do in every other month. It is a time when it is more important than ever for consumers to have strong legal protection and to be aware of their consumer rights.
The good news for consumers is that their rights have been significantly extended and strengthened by the new Consumer Rights Act 2022. The Act represents the most significant overhaul of Irish consumer law in over four decades, providing for the first time a single legislative framework for consumer contract law and introducing important new protections that aim to modernise the law and adapt it to the digital world.
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From RTÉ Radio 1's Morning Ireland, Kevin O'Brien from the Competition and Consumer Protection Commission on new legislation on faulty goods and services, digital products and sale pricing.
What does the Act do for me?
Under the Act, traders must deliver goods and provide services that are in conformity with the contract. Goods must be fit for both any particular purpose specified by the consumer and must also be fit for all of the purposes for which goods of the same type would normally be used. Goods must also possess the quality, durability, and other features normal for goods of the same type and which the consumer may reasonably expect.
The Act includes provisions for sale of goods 'with digital elements', commonly known as 'smart goods', such as smart phones and appliances that contain software. The trader must ensure that the consumer is informed of and supplied with any updates (including security updates) where required under the contract and as necessary to ensure continued conformity with the contract. Any defect in the goods that becomes apparent within the first 12 months is presumed to have existed at the time of delivery, and this means that it is up to the trader to prove otherwise.
In relation to contracts for services, the Act provides for significant new consumer rights. Previously, consumers entering contracts for legal, building, healthcare and other services had limited right to redress, but the Act now provides for an extensive regime to provide redress for flawed services. The trader must have the necessary skill to provide the service and must provide it with reasonable care and skill. In addition, any materials used in the supply of the service must be sound, reasonably fit for the purpose for which they are supplied and correspond to any description provided by the trader.
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From RTÉ 2fm's Dave Fanning Show, consumer journalist Siobhan Maguire on consumers' rights with 'buy now pay later' options
What happens if something goes wrong?
The Act provides for a stronger and clearer remedies regime. Consumers can get a refund for non-conforming goods within 30 days from delivery, or they can choose to have the goods repaired or replaced. There is also an option for the consumer to get a price reduction or cancellation and refund in specified circumstances, such as where the lack of conformity is sufficiently serious or where the trader has unsuccessfully tried to repair the goods.
Repair or replacement must be free of charge and must be carried out as soon as possible and without inconvenience to the consumer. Similar redress options apply to services contracts. Consumers are also entitled to withhold payment of any outstanding part of the price payable under the contract until the trader fulfils its obligations under these parts of the Act.
What's the story with digital content and services?
A key change brought about by the Act is the inclusion of provisions dealing with digital content and services. For the first time, Irish consumers buying digital goods such as video games, movies, music files or e-books - or a digital service such as a subscription to Netflix or Amazon Prime - will have a means of redress for any issues that arise with their purchases. The rights and remedies available for defective digital content and services are similar to those available for goods and include conformity obligations relating to functionality, compatibility and interoperability as well as updates and security.
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This part of the Act also marks a new development in Irish law as it applies for the first time to contracts in which the consumer pays for digital content or service by providing personal data rather than by paying in money. The inclusion of these kinds of contract extends the scope of the rules for digital content and services well beyond those that exist elsewhere in consumer contract law, and therefore significantly strengthens consumer rights.
Clear, plain, legible and concise language
The Act updates and strengthens the law on unfair contract terms. Terms must be expressed in plain intelligible language, must be legible and presented clearly and must be made available in advance. Where terms are novel or onerous, they must be brought to the consumer’s attention so that the average consumer would be aware of them as well as any costs or other financial consequences.
The Act also contains a new blacklist of terms that are automatically deemed to be unfair. This includes, for example, a term that the agreement is only legally binding for the consumer and not for the trader; or a term allowing the trader to unilaterally change the terms of the contract without notice.
The Consumer Rights Act 2022 will bring real and positive benefits for Irish consumers
Traders must provide consumers with certain information before the contract is made. For example, traders must provide a full description of the goods or services, the total price or how it is calculated and any additional costs for delivery or postage. Consumers who purchase online or from a salesperson at their door must be given information relating to terms and conditions that apply to deposits, and details of their right to cancel. This information must be provided in clear and concise language.
The Act also strengthens enforcement powers and increases penalties for traders who infringe its provisions. The Competition and Consumer Protection Commission is given new enforcement powers in the Act to apply to court for declarations or injunctions against traders who refuse to comply with provisions of the act.
The Consumer Rights Act 2022 will bring real and positive benefits for Irish consumers. It provides stronger rights and clearer paths to resolving issues when something goes wrong. It certainly comes at an opportune time when many of us are filling Christmas stockings with an array of smart watches, phones, e-readers and wearables, as well as subscribing to streaming services like Spotify and Apple TV. Luckily for us, the new Consumer Rights Act is for life and not just for Christmas!
The views expressed here are those of the author and do not represent or reflect the views of RTÉ
