Lack of consumer awareness is costing the economy almost €1 billion a year, the head of the Government's new National Consumer Agency has said.
Anne Fitzgerald, chairwoman of the agency, yesterday criticised successive governments for their failure to consult with, inform or advocate on behalf of the consumer.
She said the power of vested interests over the years in preventing consumers getting a fair deal had been "frightening", but that this was now over.
Ms Fitzgerald told The Irish Times the research it had carried out in the 18 months since being established found a "huge lack of awareness among consumers of their rights".
"They don't know where to go if things go wrong, they don't know how to go about complaining, they don't know which bodies to go to. There is a great hunger for information.
"There is also a lack of recognition by Government and business of the value of empowered and aware consumers."
Consumers who demanded better services and value forced companies to innovate, to employ more cost-efficient practices, and forced Government to drive for higher standards, she said.
"We worked out that the cost to the economy of passive consumers and bad services was €840 million a year," she said.
The agency arrived at this figure using formulae tested in Britain which measured "consumer detriment" - or the loss experienced when consumers put up with goods or services that were faulty or overpriced. In Britain, the estimate is a cost of £8.7 billion per annum.
Given that Ireland has a "less developed consumer culture than in Britain", Ms Fitzgerald said the cost here was about €840 million a year.
Comparing public spend here on consumer advocacy, research, information, education and enforcement with a number of other European countries, she said while enforcement has always been well resourced, "there has been very little spend on advocacy and empowerment. These areas are where the Government will have to put real effort."
She described the recent television programme Rip Off Republic as "great", saying it "raised the issues and raised consumer awareness, which is most welcome". The Government had failed in this, she said, and "we need and want more consumer programmes".
On the Groceries Order, she said it had been around for 20 years, there had been "numerous reviews", and the debate had always been "conducted behind closed doors".
The current review by the Minister for Enterprise, Trade and Employment, Micheál Martin, was the first being conducted "in public", and this is what has been missing.
"The power of vested interests has been frightening. It is so important we have this [ agency] to make consumers count. This is serious and it's exciting. The days of the consumer not having a strong voice are over." If "vested interests" tried again to stop consumers getting a fair deal, the agency would be "shouting" about it, she warned.
Referring to criticisms from Ibec and RGData, who claimed figures used by the agency showing a basket of Irish groceries cost 22.3 per cent more here than in other euro zone countries were flawed, Ms Fitzgerald said she had the figures re- analysed. The new set of figures showed the basket in fact cost 25.9 per cent more here.
The agency had its second meeting this week and meets again in October.
