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Covid-19 Pandemic

Dáil Éireann Debate, Wednesday - 13 January 2021

Wednesday, 13 January 2021

Questions (13)

Cian O'Callaghan

Question:

13. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment his plans to reimburse couples who have lost deposits and incurred other costs due to Covid-19 restrictions for weddings; and if he will make a statement on the matter. [1054/21]

View answer

Written answers

There are no plans for the Government to reimburse couples arising from contracts that were privately entered into with wedding suppliers. The restrictions introduced to limit the spread of Covid-19 have led to the cancellation or deferral of many events and services, including weddings. In many cases where it is not possible to proceed with a wedding due to these restrictions, the couple will be able to agree on an alternative date and the question of a refund will not arise. 

Whether a couple are entitled to a refund of their deposit where it is not possible to reschedule the wedding will depend in the first instance on the terms and conditions of their contract.  Couples who find themselves in this situation should first check the terms and conditions of their contract and, in particular, the terms relating to cancellations and the refund of deposits and other prepayments. If a term of the contract provides for the refund of deposits in the event of a cancellation, the business may not subsequently change that term without the consumer’s agreement.  While I fully appreciate that businesses are facing severe financial pressures at present, they should deal fairly with consumers who find it necessary to cancel contracts for weddings and are seeking a refund of their deposits. 

The terms of standard form contracts of the kind that typically govern weddings are subject to assessment for unfairness under the Regulations on unfair terms in consumer contracts.  The aim of the Regulations is to protect consumers against the abuse of power by sellers and suppliers, in particular by means of one-sided contract terms. The Regulations provide for example that among the terms that may be regarded as unfair are terms that permit sellers or suppliers to retain sums paid by the consumer where the latter decides not to perform the contract without providing for the consumer to receive compensation of an equivalent amount from the seller or supplier where the latter is the party cancelling the contract. 

The Competition and Consumer Protection Commission (CCPC) is responsible for the enforcement of the provisions of the Regulations on the control of unfair terms in standard form consumer contracts. Information on matters relating to consumer contracts, including on cancellations and refunds for weddings and other contracts, can be accessed on the CCPC website at https://www.ccpc.ie/consumers/covid-19/consumer-contracts/ .

The enormous disruption to commercial activity caused by Covid-19 has thrown up many difficult situations for consumers and businesses. If current consumer law proves not to have provided adequate protection for consumers in these situations, I will consider and, where justified, bring forward proposals to strengthen that law where I can do so without contravening EU consumer protection legislation. In the next couple of months, I intend to bring forward proposals for a comprehensive, consolidated Consumer Rights Bill that will set out rights and remedies for consumer contracts for goods, services, and digital content and will include proposals to strengthen the existing provisions on unfair terms in consumer contracts. This Bill will provide an opportunity to address any gaps in consumer protection revealed by the application by businesses of the terms of consumer contracts in cases arising from Covid-19.

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