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40% of firms not ready for ’dawn raids’

Four in ten Irish businesses are unprepared to handle unannounced regulatory inspections, known as 'dawn raids', according to a survey by business-law firm Mason Hayes & Curran (MHC).

The firm says that the survey highlights “a significant lack of readiness”, despite increased enforcement efforts by Ireland’s Competition and Consumer Protection Commission (CCPC).

MHC cites a recent pledge by the watchdog to “move faster, take more cases, and become even more of a deterrent to bad actors in the Irish marketplace”.

Enforcement

Tara Kelly (partner and head of competition at MHC) said that recent changes to Irish competition laws had “radically overhauled” enforcement in Ireland. 

“The authorities now have discretion to pursue criminal or administrative routes, with new powers to impose fines subject to court approval. 

“Unprepared businesses run the risk of over- or under-complying with searches, which could result in significant financial, legal, and reputational consequences,” she stated.

Nearly two-thirds (63%) of the 180 professionals surveyed cited staff preparedness as a major concern during dawn raids.

Training

Three-quarters (74%) of businesses have not conducted dawn raid training within the past year, and over a third (36%) have not implemented formal guidelines.

Liam Heylin (competition partner at MHC) pointed out that, during a dawn raid, regulators could examine data from corporate and personal devices used for work.

“We are advising clients to prioritise staff training so that teams are prepared and know what to do in the event of a dawn raid. Without adequate preparation and clear guidelines, businesses are leaving themselves exposed,” he stated.