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        Over 40 Years of Independent Representation     
                                      1966 – 2009.

                      The Consumers' Association of Ireland is a wholly independent, non-profit,
                    non-government organisation registered with charitable status. CHY No. 8559.
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                                          PRESS RELEASE

Consumers’ Association of Ireland launches campaign for Group Actions in Ireland
Rights, Consumers, Group Actions!

At their Annual General Meeting today (October 29th) the Consumers’ Association of Ireland (CAI) launched their Rights, Consumers, Group Actions!campaign calling for the introduction of a Group Action legal procedure for consumers.

The CAI is proposing that Irish consumers who have been the victims of the same illegal or unfair behaviour by a trader should be able to gather their claims together to act against the trader for compensation.
 “There is evidence to suggest that consumers are being discouraged from making complaints and are being frustrated when they do, even when they have a legitimate claim. Some traders appear to operate a “fob off and frustrate” policy. A recent study found that of 4 out of 10 Irish consumers had a reason to make a complaint in the past year, but that almost a third of them didn’t.  Of those who did complain 2 out of 3 felt frustrated by the process. Therefore we need to make it easier for consumers to seek redress and a Group Action procedure would do just that. Indeed an EU study found that 76% of consumers would be more willing to defend their rights in court if they could join together with other consumers” commented James Doorley, Chairman of the CAI.

In an era of mass production and provision of services and where businesses are interacting with millions of consumers a large number can be harmed by the same or similar practice by the same trader or business. Therefore we need accessible, cost effective and efficient options for consumers to deal with this potential mass damage of consumer rights. The Law Reform Commission has concluded that the Irish legal system lacks a comprehensive procedure that would tackle collective actions in a consistent, effective and expeditious manner They stated that the current legal mechanisms, namely Representative Actions and Test Cases were inadequate and restrictive. There is also growing international recognition that Group Actions are an important and necessary legal procedure which enhances and protects consumer rights. The OECD has recommended that member states provide consumers with access to different means of redress, including collective redress mechanisms, such as Group Actions. Thirteen of the twenty seven member states of the European Union have judicial collective redress mechanisms. In addition draft laws are being considered in a number of other member states such as France and Poland and the European Union issued a Green Paper on this topic last year proposing action at national and EU level.

“Group Actions and collective redress is about more than seeking restitution and compensation for individual and groups of consumers, it is about enforcement and creating a culture of compliance with consumer rights. In some cases for legal, financial and regulatory reasons, regulators are not always in a position or appear reluctant to pursue actions against those who harm consumers. This leaves consumers angry and frustrated. We should seek to develop a regulatory system that empowers consumers to hold traders, businesses and companies to account alongside regulators through court action if necessary. Therefore we are calling on the Government to back the idea in principle, commit to establish an expert group and to work with us and others in developing a Group Action system best suited to the needs of Irish consumers”  

Contact:          James Doorley                
                       Chairman                          
                       087-6483282                   

Please contact CAI at 01-4978600 if you want a copy of the detailed campaign briefing paper.

NOTE: In the United States this legal procedure is referred to as Class Actions; however CAI is not advocating the introduction of the American Class Action model here which we believe has a number of flaws, but rather a Group Action procedure for consumers which have been very successful in other European countries.

ENDS