The government has signed off on a bill that would introduce protections for consumers buying digital content and services equivalent to those in place for buyers of offline products and services.

If passed into law, the Consumer Rights Bill 2022 would give online consumers the right to a full refund, exchange or repair when the good or service is not as described or not fit for purpose.

"This new law is good for consumers and good for business," Tánaiste and Minister for Enterprise, Trade and Employment Leo Varadkar said. "Most businesses are responsible and treat their customers fairly when things go wrong.

"For those that don’t, it can give them an unfair advantage over their competitors. This new law consolidates a lot of existing legislation and updates it, to make it fit for the modern, digital age."

The bill will be published shortly and then make its way through all stages of the Oireachtas. The Joint Oireachtas Committee on Enterprise, Trade and Employment has completed pre-legislative scrutiny on the Bill.

In Association with

Under the law, consumers would also be entitled to any upgrades to the product or service that are needed to ensure the goods continue to work as expected and agreed, free of charge.

Terms and conditions that allow traders to unilaterally change the terms of a contract, or any provision that would indemnify a trader from harm caused by a product or service, would be "blacklisted" under the law.

Business would also be required to set out a clear description of the goods or services being provided, the total price of the item, and the cost of delivery before entering into a contract with the consumer.

Companies who engage in "misleading and aggressive commercial practices", such as fake reviews, could be subject to fines imposed by the courts following enforcement action taken by the Competition and Consumer Protection Commission (CCPC) if the law is passed.

Customers would be offered a price reduction on faulty goods if that suits them better, instead of just an exchange, refund or repair, and they would be entitled to withhold payment for goods partially paid for if they are not satisfied with the quality of item.

Any form of redress must be free of charge and must be carried out as soon as possible.

Lorraine Higgins, secretary general of Digital Business Ireland, warmly welcomed the announcement, saying it was "imperative" that the government took steps to protect consumers while providing coherent guidelines for businesses as they pivoted to trading online.

"This move will hopefully give the edge to Irish merchants trading in the global marketplace," Higgins said. “At Digital Business Ireland, we look forward to working closely with all stakeholders, to ensure our consumer laws reflect the new and dynamic digital marketplaces that many Irish businesses are operating in”.

Welcoming the publication of the bill, Minister of State with responsibility for Consumer Protection legislation Robert Troy said: "This bill represents the biggest overhaul of consumer rights law in 40 years.

"The proposed legislation modernises and consolidates existing consumer protection law and significantly strengthens the enforcement powers of our agencies responsible for ensuring consumer rights such as the CCPC and ComReg."

He added: “Once enacted this legislation will strengthen protections for consumers, while also creating clearer rules for businesses ensuring the market works fairly and effectively for both.”

(Pic: Getty Images)