Ireland: New Deal For Consumers Update - May 2018

Last Updated: 13 June 2018
Article by Andrew Bates and Breeda Cunningham

Most Read Contributor in Ireland, September 2019

Proposals for a New Deal for Consumers

On 11 April 2018 the European Commission published two directive proposals as part of the Commission's 'New Deal for Consumers' ("New Deal"). The New Deal is an initiative to ensure European consumers are benefiting from their rights granted under European Union law.

The inadequacy of the current regime was brought to light in the 'Dieselgate' scandal and in two reports - REFIT Fitness Check of EU Consumer and Marketing law ("Fitness Check") and Consumer Rights Directive evaluation ("CRD Evaluation") – which were published in May 2017 following an extensive evaluation conducted on existing consumer rules. The two new proposals are based on the recommendations made in the Fitness Check and CRD Evaluation and propose to build on the current legislative framework by amending existing Directives.

Proposal 1

The first proposal is for a "Directive on better enforcement and modernization of EU consumer protection rules" ("Proposal 1"). It will revise four existing directives principally. The Unfair Contract Terms Directive (93/13/EEC) and the Consumer Price Indications Directive (98/6/EC).

The Unfair Commercial Practices Directive (2005/29/EC) and the Consumer Rights Directive (2011/83/EU) will also be amended but solely in relation to the penalties.

Proposal 1 sets out to establish amongst other things:

  • effective, proportionate and dissuasive penalties for widespread cross-border infringements;
  • individual remedies for consumers who have been harmed by unfair commercial practices such as aggressive marketing;
  • disclosure of third-party suppliers in online marketplaces as they may cause identifying the vendor difficult, thereby misleading the consumer;
  • search results on online platforms requiring indications of "paid placements" (i.e. where a search result does not show the most relevant item but items that have paid to show up as a result thereby potentially misleading the consumer);
  • that a commercial practice involving the marketing of a product as being identical to the same product marketed in several other Member States where those products have significantly different composition or characteristics causing or likely to cause the average
    consumer to take a transactional decision that he would have not taken otherwise, is a misleading commercial practice (misleading "dual quality" marketing);
  • extending protection of consumers rights in respect of digital services where the consumer does not pay money for the service but rather provides personal data (e.g. cloud storage, social media websites, e-mail accounts).

Proposal 2

The second proposal is for "a Directive on representative actions for the protection of the collective interests of consumers, and repealing Directive 2009/22/EC" ("Proposal 2"). It fine tunes Directive 2009/22/EC ("Injunctions Directive") which introduced the ability of qualified entities to bring representative actions on behalf of consumers but was criticised in the Fitness Check, along with
other reports for being too limited in scope, for its procedures being too costly and lengthy and having a limited effect on harmed consumers.

The need for consumers to be able to bring representative actions was described by Věra Jourová, the Commissioner for Consumers, as a mechanism to "level the odds" between global "big companies" and "individual consumers" since the former are currently operating at a huge advantage.

Proposal 2 sets about remedying these shortcomings by introducing amongst other things:

  • stronger sanctions where there have been consumer law infringements linked to the company's annual turnover to ensure it is not "cheap to cheat";
  • rules enabling "qualified entities" to seek representative actions aimed at the collective interests of consumers;
  • efficiency of procedure;
  • facilitating redress for consumers who are victims of such infringements by mechanisms such as requiring traders found in judicial proceedings to have breached consumer rights to inform consumers affected by such breaches and explaining to them how to benefit
    from redress.

Importantly Proposal 2 contains safeguards to prevent the abuse of process by, amongst other things, only allowing "qualified entities" such as consumer organisations as defined in the proposal to launch actions, and requiring such entities to have strict obligations of transparency regarding the source of their funding.

As the Commission's Press Release says "This model has strong safeguards and is distinctly different from US-style class actions. Representative actions will not be open to law firms, but only to entities such as consumer organisations that are non-profit and fulfil strict eligibility criteria, monitored by a public authority. This new system will make sure European consumers can fully
benefit from their rights and can obtain compensation, while avoiding the risk of abusive or unmeritied litigation.

Further information on the proposals can be found at Proposal 1 and Proposal 2.

For further guidance regarding the New Deal for Consumers, please refer to the contacts above, or to your usual contact within Dillon Eustace.

Dillon Eustace - May 2018

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions