Ireland’s government faces increasing pressure to deliver tangible cost-of-living relief to consumers, with a focus on strengthening consumer protections and promoting fairer market practices. Several policy initiatives, some dating back to 2021, are now being urged forward as the Dáil approaches its summer recess.
Consumer Protection Bill Stalled
A key area of focus is the passage of the Consumer Protection (Loyalty Penalty and Customer Complaints) Bill, initially introduced in 2021. The legislation aims to outlaw the practice of penalizing long-term customers with higher prices than those offered to new subscribers, a common tactic in sectors like telecommunications, insurance, and utilities. This forces consumers into a cycle of annual switching to secure competitive rates, disproportionately impacting older individuals and those less comfortable navigating price comparison websites.
The bill also seeks to hold service providers accountable for substandard customer service, with strengthened enforcement powers intended to act as a deterrent and incentivize improvements across the sector. Its enactment is now being prioritized as a means of providing immediate relief to households grappling with rising costs.
Addressing Opaque Pricing Practices
Beyond loyalty penalties, concerns are mounting over increasingly opaque pricing practices. Event ticketing is a prime example, where advertised prices often exclude mandatory booking fees revealed only at the point of purchase. The availability of tickets at the advertised price is often unclear, with allocations frequently reserved for presales or corporate hospitality packages. This lack of transparency erodes consumer trust.
The hospitality sector is also under scrutiny, with hotels frequently inflating prices in response to major events. Instances of hotels cancelling existing bookings to re-list rooms at higher rates have been reported, a practice widely considered exploitative. Anecdotal evidence suggests that attending events abroad, including travel and accommodation costs, can be cheaper than staying in Dublin, raising questions about competition and fairness within the domestic hospitality market.
Proposed solutions include mandating that all-inclusive pricing, encompassing unavoidable fees, be displayed upfront for all products and services, starting with event tickets. Requiring hotels to honor confirmed bookings, regardless of demand fluctuations, is being considered.
Transparency in Mid-Contract Price Increases
Mid-contract price increases, another source of consumer frustration, could be addressed by adopting transparency requirements similar to those implemented in the United Kingdom. These requirements would necessitate clear communication of any price increases as a specific monetary amount, alongside a display of the contract’s total expected cost, mirroring the practice of energy providers displaying estimated annual bills.
Re-evaluating Reliance on Private Comparison Tools
The Irish government has increasingly relied on private price comparison tools, such as Bonkers.ie, and Switcher.ie, to assist consumers in navigating complex markets. However, concerns exist regarding potential conflicts of interest inherent in these commercial platforms.
a significant portion of the population lacks financial literacy, potentially hindering their ability to fully understand the long-term implications of financial products like personal contract plans for car payments and buy-now-pay-later schemes. These products are often marketed with an emphasis on benefits while obscuring associated risks.
Strengthening the Competition and Consumer Protection Commission
To address these challenges, calls are growing for increased funding and an expanded remit for the Competition and Consumer Protection Commission (CCPC). A strengthened CCPC could play a more prominent role in consumer education, providing independent comparison tools, tracking price trends, and establishing a public grocery price database to monitor historical fluctuations and identify instances of shrinkflation – the practice of reducing product size while maintaining the same price.
Simplifying Bank Account Switching
Switching bank accounts in Ireland remains a cumbersome process, requiring consumers to independently verify the transfer of all direct debits and payments. This discourages competition and places an undue burden on consumers. A streamlined, digital switching process, allowing consumers to select a new provider and accounts online with minimal effort, is being proposed.
Addressing Transportation Costs and Energy Poverty
Transportation costs, particularly for those with limited access to public transit, represent a significant household expense. Expanding fare caps, increasing access to multi-modal travel passes, and ensuring affordability across regions are being considered. Regulatory oversight of car financing products, including personal contract plans and leasing arrangements, is also needed to prevent predatory lending and ensure transparent disclosure of terms.
Ireland’s growing energy poverty crisis demands urgent attention. Current policies primarily focus on short-term subsidies, failing to address the underlying issues of poorly insulated homes and outdated heating systems. Expanding access to long-term, interest-free or low-interest retrofit loans, secured against property and means-tested for equity, is proposed. Subsidized schemes for landlords to improve rental standards are also under consideration.
These proposed policy changes represent practical and impactful measures that the government could implement swiftly, offering direct benefits to consumers, enhancing market fairness, and reducing structural vulnerabilities. At a time of sustained economic pressure on households, acting on these proposals is viewed as both sound policy and common sense.
