Dáil Éireann Debate, Wednesday - 24 March 2021
141. Deputy Catherine Connolly asked the Tánaiste and Minister for Enterprise, Trade and Employment the action taken by his Department with the Competition and Consumer Protection Commission on the need to conduct an investigation into potential mis-selling by Irish agents involved in the French leaseback property scandal; the steps he plans to take on the matter; and if he will make a statement on the matter. [13952/21]
View answerOne of the primary functions of the Competition and Consumer Protection Commission (‘CCPC’) is to enforce consumer protection law in Ireland. For cross border consumer protection issues, the CCPC is part of the European Consumer Protection Co-operation (CPC) Network, which is comprised of national authorities responsible for enforcing EU consumer protection laws. This network protects consumers when conducting transactions across national borders and, allows consumer protection agencies to co-operate to resolve particular consumer issues. The CPC Network is central to addressing this matter, which involved the purchase by consumers of properties in France. These properties were developed, marketed, sold and managed by French traders under a French ‘Residence de Tourisme’ scheme devised by the French Government to provide tourist accommodation in France. Under the European CPC network, the appropriate authorities to conduct an investigation in relation to this matter are the French consumer protection authorities – Direction Générale de la Concurrence, de la Consommation et de la Répression des Fraudes (‘DGCCRF’).
The CCPC has informed my Department it has engaged with the DGCCRF with respect to the issues highlighted by Irish property purchasers. The CCPC received complaints from Irish property purchasers and provided an initial preliminary assessment to the DGCCRF for over 150 complainants. Following consultation with the DGCCRF, the CCPC collated and transferred to the DGCCRF the transactional documentation of over 150 Irish property purchasers. The CCPC has and continues to provide significant time and resources to this matter and to support the DGCCRF investigation. In addition, throughout the period of engagement with the DGCCRF, whenever issues have been raised by Irish property purchasers, the CCPC has passed these on to DGCCRF and taken whatever additional steps requested by DGCCRF.
In order to protect the integrity of the investigation and comply with relevant French criminal procedural codes, the DGCCRF requested that the CCPC refrain from commenting or communicating on the investigation other than providing updates. The CCPC has strictly adhered to this request. In April 2020, the CCPC was advised that due to COVID-19 the DGCCRF investigation had been disrupted and that this had delayed progress on the matter. However, the CCPC has continued to engage with the DGCCRF and to seek updates on progress. Although the COVID-19 crisis has impacted on the investigation, it has been assured that work continues and the matter is being progressed. The CCPC’s priority in relation to this matter is to continue to support the DGCCRF investigation and to ensure that compliance with the legal procedural requirements of the French criminal investigation process.
With regard to the Deputy's question about the need to conduct an investigation into potential mis-selling by Irish agents, I am advised that:
- As the subject matter of Irish complainants relates to the purchase of French property under a French property scheme governed by French property and tax law, the appropriate authorities to conduct an investigation are the DGCCRF.
- French traders were involved in the design, development and marketing of these French resorts/properties and promoted them to consumers. The DGCCRF criminal investigation is ongoing and on that basis it would not be appropriate for the CCPC to comment or communicate on the specifics relating to the investigation. Therefore, it would also not be appropriate at this time to comment on any alleged role Irish agents may have had in the French Leaseback Property Scheme.
- When DGCCRF has completed its investigation it will provide to the CCPC information on any potential concerns or infringements with respect to Irish agents identified during the course of their investigation. At that point, the CCPC will assess the information provided by the DGCCRF in order to determine whether there was any breach of consumer protection legislation by Irish traders.
- Following any such assessment and in accordance with their prioritisation principles, the CCPC will decide what action may be required.
At this time the primary focus of the CCPC is to continue to support the DGCCRF investigation. The CCPC considers this matter as a high priority issue to which they have dedicated considerable resources.
