The charging of prices that are considered “unreasonable, unfair or unethical” is not illegal in Ireland’s free market economy, even when businesses hike prices in a “crisis or disaster situation”, the consumer watchdog has said.
The Competition and Consumer Protection Authority (CCPC) has screened 907 complaints submitted by consumers at the beginning of March.
The authority said that 875 of these complaints relate to allegations of price gouging or price increases that had been “clearly communicated to consumers” .
Price increases may only be considered a breach of consumer protection law “when they are not clearly communicated to consumers or when a company is considered to be abusing its dominant position in the market”, the CCPC stated.
The CCPC said that 96.5% of the complaints it received expressed “distress and frustration at sudden and significant price rises across essential fuel products”.
However, it maintains that “Ireland is an open market economy where businesses are free to set their own prices”.
“This means that the high prices reported by consumers are not a breach of competition or consumer protection law.”
The authority said that it will continue to monitor fuel markets and that, should evidence like “sustained excess profits which are not curtailed by competitive pressure” point towards market failures, it will consider appropriate recommendations to bring about reform.
Allegations of cartels
Twelve of the complaints submitted to the CCPC concerned allegations of price fixing, which the authority said would amount to cartel activity if supported by evidence.
These ranged from “general statements where no company names were provided” to “specific statements alleging collusion between specific companies”.
“All allegations of cartel behaviour are sent to our cartels division for assessment. Due to the highly confidential nature of cartel cases, we cannot provide further details,” the CCPC said.
Home heating
The watchdog is following up on 35 complaints regarding home heating oil that concern allegations of traders failing or refusing to “provide adequate pricing information” or which “were limiting orders”.
Investigators are “engaging with consumers and companies to further examine the details of some of these contacts”.
“Irish consumer protection laws on pricing oblige traders to clearly display and communicate prices to consumers before they make a transaction,” the CCPC said.
“If the final price cannot be calculated, then a consumer must be told in advance how the final price will be calculated.
“Traders also cannot use misleading or unfair practices when engaging with consumers.”
Price changes after payment
A further 24 complaints relating to home heating oil that had been paid for in advance of the price increases but not yet delivered “may warrant further investigation”.
These complaints included the following scenarios:
An agreed price was paid on ordering the oil, but consumers were told prices had increased on delivery. Traders cancelled orders that had already been paid for by the consumer, citing stock availability issues, but continued to advertise oil as available at a higher price.Consumers did not receive their full order of oil upon delivery and traders failed to provide a refund for the undelivered oil.Traders cancelled orders for oil citing delivery restrictions that were not adequately disclosed to the consumer before they made their purchase.
The charging of prices that are considered “unreasonable, unfair or unethical” is not illegal in Ireland’s free market economy, even when businesses hike prices in a “crisis or disaster situation”, the consumer watchdog has said.
The Competition and Consumer Protection Authority (CCPC) has screened 907 complaints submitted by consumers at the beginning of March.
The authority said that 875 of these complaints relate to allegations of price gouging or price increases that had been “clearly communicated to consumers” .
Price increases may only be considered a breach of consumer protection law “when they are not clearly communicated to consumers or when a company is considered to be abusing its dominant position in the market”, the CCPC stated.
The CCPC said that 96.5% of the complaints it received expressed “distress and frustration at sudden and significant price rises across essential fuel products”.
However, it maintains that “Ireland is an open market economy where businesses are free to set their own prices”.
“This means that the high prices reported by consumers are not a breach of competition or consumer protection law.”
The authority said that it will continue to monitor fuel markets and that, should evidence like “sustained excess profits which are not curtailed by competitive pressure” point towards market failures, it will consider appropriate recommendations to bring about reform.
Allegations of cartels
Twelve of the complaints submitted to the CCPC concerned allegations of price fixing, which the authority said would amount to cartel activity if supported by evidence.
These ranged from “general statements where no company names were provided” to “specific statements alleging collusion between specific companies”.
“All allegations of cartel behaviour are sent to our cartels division for assessment. Due to the highly confidential nature of cartel cases, we cannot provide further details,” the CCPC said.
Home heating
The watchdog is following up on 35 complaints regarding home heating oil that concern allegations of traders failing or refusing to “provide adequate pricing information” or which “were limiting orders”.
Investigators are “engaging with consumers and companies to further examine the details of some of these contacts”.
“Irish consumer protection laws on pricing oblige traders to clearly display and communicate prices to consumers before they make a transaction,” the CCPC said.
“If the final price cannot be calculated, then a consumer must be told in advance how the final price will be calculated.
“Traders also cannot use misleading or unfair practices when engaging with consumers.”
Price changes after payment
A further 24 complaints relating to home heating oil that had been paid for in advance of the price increases but not yet delivered “may warrant further investigation”.
These complaints included the following scenarios:
An agreed price was paid on ordering the oil, but consumers were told prices had increased on delivery. Traders cancelled orders that had already been paid for by the consumer, citing stock availability issues, but continued to advertise oil as available at a higher price.Consumers did not receive their full order of oil upon delivery and traders failed to provide a refund for the undelivered oil.Traders cancelled orders for oil citing delivery restrictions that were not adequately disclosed to the consumer before they made their purchase. 
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