The Gazette 1978

The Consumer Information Act, 1978

By EDWARD DONELAN, M.A., Barrister-at-Law

(Vice-Chainnan, Consumers Association of Ireland)

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;

(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.

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;

(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.