Enforcement action taken against Creative Retail Solutions Limited
February 24, 2016
The Competition and Consumer Protection Commission (“the CCPC”) has today published details of enforcement action taken against Creative Retail Solutions Limited. The enforcement action was taken in relation to the display of a sign at the company’s temporary store, “Gadget Box”, Grafton Street, Dublin 2. The sign notified consumers that it was the shop’s strict policy not to provide refunds and that Gadget Box would only exchange goods within 24 hours of purchase and with a receipt.
The CCPC formed the view that the sign suggested to consumers that their statutory rights were restricted. Under consumer law a consumer has rights, including a right to reject the goods and obtain a full refund, if an item that they purchase is faulty. Traders cannot restrict those rights. Furthermore, businesses are not permitted to set a time limit on returning faulty goods. As a result the CCPC issued a Compliance Notice directing the company to cease displaying statements that could mislead consumers as to their rights.
The CCPC’s enforcement action in this case specifically relates to a breach of the Sale of Goods and Supply of Services Act 1980. This legislation gives consumers the right to expect that the goods they purchase are of merchantable quality, fit for the purpose they were bought for and as described. If goods fail to comply with any of the above and the consumer is not to blame – i.e. due to misuse, accidental damage, or wear and tear – consumers have a number of options to seek redress from the trader. These include: repair, replacement, a reduction in the price, or a refund. Under this legislation it is also an offence for a business to make a statement that implies the above rights are restricted or excluded.
Businesses can find out more about their obligations under law in the Compliance for Business section of ccpc.ie.
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