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Regulators ‘get tougher on consumer protection’

Lawyers at A&L Goodbody (ALG) has said that businesses are “starting to feel the bite” of a tougher regulatory approach to consumer issues from the Competition and Consumer Protection Commission (CCPC).

The lawyers say that an increase in the enforcement of consumer-protection law last year across the EU added “real weight” to a package of legislative changes introduced by the EU to protect consumers.

In a note on the firm’s website, its lawyers warn businesses that they do not expect any dampening of consumer-law enforcement in 2025.

Fining powers

They highlight calls from CCPC chair Brian McHugh last year for more substantial financial penalties for breaches of consumer-protection legislation.

While the Consumer Rights Act 2022 provides for large fines for breaches of such legislation, these fines may be applied only by the courts.

The ALG lawyers suggest that the CCPC may be looking to replicate, for consumer-protection law, the powers it now has to impose administrative financial sanctions for breaches of competition.

E-commerce focus

For 2025, the firm expects a continued focus on the e-commerce and technology sectors from the CCPC and European regulators, with the potential for such engagements to run parallel with EU Commission probes into compliance with the Digital Services Act.

The ALG lawyers note that the outcome of a CCPC investigation into the use of ‘dynamic pricing’ for the sale of tickets for Oasis’s reunion tour is due this year, while prosecutions against retailers for breaches of pricing laws during winter sales are expected to come before the District Court soon.

They add that both issues “may yield some clarity on the CCPC and the court’s view of certain pricing laws that can be difficult for a trader to navigate in practice”.

Pricing information

The ALG lawyers also signal a continuing focus by EU and national regulators on so-called ‘greenwashing’ claims, with tougher EU measures set to come into force in the coming years.

The firm urges businesses to keep themselves up to date on changes in consumer-protection law, and to consider all steps in the ‘customer journey’ when planning a new product or marketing campaign.

“Businesses should take particular care to ensure that pricing information, and in particular any price-reduction announcements, comply with relevant pricing regulations,” the lawyers conclude.