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Consumer Rights Act 2022

Introduction

The Consumer Rights Act 2022 (CRA) was introduced in November 2022. It updated and strengthened consumer protection laws in Ireland. It is important for traders to understand how their obligations may have changed under this new legislation.

The CRA sets out different consumer protection rules depending on whether a consumer enters into a contract for the sale of goods, a contract for the supply of digital content or digital services or a contract for the supply of services.

These guidelines provide an overview of the rules and remedies that apply to consumer contracts for the supply of services, as set out in Part 4 of the CRA.

Glossary

Ancillary contract

A contract entered into between a consumer and a trader, or between a consumer and a third party, under which the trader or the third party (under an arrangement made between the trader and the third party) supplies goods, digital content, a digital service or another service related to the principal contract.

Conformity with a service contract

Services must meet the requirements of the service contract, both objectively (by meeting what the consumer would normally and generally expect from the same type of service) and subjectively (by meeting what is specified in the service contract).

Consumer

An individual, acting for purposes wholly or mainly outside their trade, business, craft or profession.

Contract

An agreement between a consumer and a trader under which services are purchased. Contracts can be made verbally or in writing.

Contract for supply of service/service contract

A contract where a trader supplies a service to a consumer in exchange for payment.

Damages

An amount of money awarded to compensate for loss.

Digital content

Data that is produced and supplied in digital form. It includes computer programmes, apps, video files, audio files, music files, digital games and e-books.

Digital service

A service that allows a consumer to, amongst other things, access, share or interact with data in digital form. It includes file hosting, social media and cloud-based gaming.

Distance contract

A contract between a trader and a consumer who are not physically in each other’s company up to, and including, the time the contract is entered into. This can include buying something online, over the phone, from a mail order catalogue or from a TV shopping channel, for example.

Off-premises contract

A contract that is generally offered or entered into away from the trader’s premises (such as in the consumer’s home or workplace) or on a trip organised by the trader, where the consumer and trader are physically in each other’s company.

Remedy

Solution(s) a trader must provide to a consumer when a service supplied is not in conformity. The remedy can include bringing the service into conformity, a refund or a reduction in price.

Trader

An individual or entity that is acting for purposes relating to their business, trade, craft or profession (such as selling goods or supplying services). It includes any person acting in the name, or on behalf, of the trader.

What are the main changes to service contracts under the CRA?

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Previously, consumer rights were found in the Sale of Goods and Supply of Services Act 1980. This Act provided that the supplier of a service must have the necessary skill to render the service, and must supply the service with due skill, care and diligence. It also provided that the materials used to supply the service must be sound and reasonably fit for purpose, and that where goods are supplied under the contract, they must be of ‘merchantable quality’. These rules now only apply to consumer contracts entered into before 29 November 2022. For consumer contracts entered into after this date, the CRA now applies.

The CRA introduces:

  • a new concept called “conformity”. You, the trader, have an obligation to ensure that all services supplied to the consumer are “in conformity with the contract” (please see ‘What does “in conformity with a contract” mean?‘ below for further information)
  • rules where, if a service is not in conformity with the contract, the consumer is entitled to seek a remedy from the trader; previously, the primary remedy for a breach of a service contract was damages, but now there is a requirement on the trader to address or fix the problem itself
  • a new right for consumers to withhold money due until the issue is remedied
  • a provision that prohibits traders from excluding or restricting rights given to consumers under Part 4 of the CRA
  • new rules on how consumers can exercise their rights, such as time limits for refunds.

When must the service be supplied to the consumer?

To determine whether a service is in conformity with the service contract, the supply of the service to the consumer must have commenced.

If you, the trader, have entered into a contract to supply a service, you must supply it at, or within, the time agreed with the consumer. Where no time period is specified, you must supply the service within a reasonable time period.

Where a service contract provides for the continuous supply of the service for a specified period, you must supply the service for the entire period.

Where a service contract provides or the supply of the service on more than one occasion, you must supply the service on each of these occasions.

If you do not supply the service on time or at the agreed time, a consumer has a right to terminate the contract. Before they can do this, the consumer must make a further request to you and give an appropriate additional amount of time to supply the service.

If you fail to supply the service within the additional period specified by the consumer, they will be entitled to terminate the service contract.

There are situations where the consumer can terminate a service contract straightaway, without needing to make this further request, or allow for extra time, namely:

  • where you have declared that you will not supply the service, or it is clear that you will not do so
  • where the consumer expressly informed you at the time of, or before, the conclusion of the service contract that it was essential for the service to be supplied within a specific time period or by a specific date, and that date has passed, or
  • where it is clear the supply of the service within a particular time period was essential, taking into account all the relevant circumstances, and that time has passed.

Where a consumer wishes to terminate a contract because you, the trader, have failed to perform the service on time, the consumer must inform you of their decision to exercise the right to terminate.

You must refund the consumer for any payments made, without undue delay, and in any event within 14 days, using the same means of payment as the consumer used to pay for the service, and without any charges or fees.

A consumer may also withhold payment for the period during which the service is not being supplied in conformity with the contract. This is also discussed below in ‘Right to withhold payment.

A different approach is taken if a short-term interruption of the supply of the service is more than negligible or recurs. In this situation, the service is deemed not to be in conformity with the contract and the remedies for “non-conformity” i.e. those discussed below, will apply. This is because it is not a failure to supply the service, but rather an issue with the quality of the service.

EXAMPLE 1 : CARPENTER CAN’T BEGIN JOB AT AGREED TIME
Simon hired a carpenter to refurbish the wooden flooring in his hallway. Simon and the carpenter agreed on the description of the work, the price and start and completion dates. Simon paid a deposit upfront and agreed to pay the carpenter the remainder once the works were completed two weeks later. Simon informed the carpenter that it was essential that the refurbishment be completed in this timeframe.

The carpenter had not started the work by the agreed date and contacted Simon to say that they would not be able to start the job for another four weeks as they were too busy with other jobs. Where a consumer has informed a trader that it is essential for a service to be performed within or by a specific date, and that date has passed, they are entitled to terminate the service contract.

Simon therefore informed the carpenter that he was terminating the service contract, and he was refunded the deposit paid.
EXAMPLE 2 : CANCELLED EVENT
Katie bought tickets to attend a music festival a number of months in advance. A few weeks before it was due to begin, the organisers announced that the festival was cancelled this year, but they hoped to run it next summer instead. The organisers issued a statement informing consumers that they would not be refunded as the tickets would remain valid for when the festival took place the following year.

Here, the organisers of the festival cannot supply the service on the agreed date. In this situation, the consumer has a right to immediately terminate the service contract and does not have to accept performance at a date the following year.

Katie informed the event organiser that she wanted to terminate the contract.

The event organiser issued a reimbursement of the price paid to her within 14 days, accepting that they were unable to deliver the service as agreed.