Irish Times

Wednesday, 2001 November 28

Consumers will have to be vigilant


In the first part of a weekly series on the euro, Mary Minihan examines
fears that the imminent change will mean higher prices for shoppers
With just 34 days to go until the euro notes and coins are introduced, the
January sales will mark the first time many shoppers will have given serious
thought to the currency.

Consumer affairs organisations have spent the last year promoting the worthy
message that early preparation would ensure a smooth transition from punt to
euro. For most of us, it's too late for that now.

The appearance of dual pricing on receipts and menus - an amusing novelty at
first - was soon largely ignored by many consumers. But with E-day fast
approaching, it's time to pay attention.

As one inspector from the Office of the Director of Consumer Affairs tells
the people he meets while promoting the euro around the country: "It'll be a
bit like going on holiday but not coming back."

The Consumers' Association of Ireland's chief executive, Mr Dermott Jewell,
said retailers and service providers should be careful of scaremongering
about the euro.

"Customers are well capable of dealing with the changeover. This should be a
very, very simple process but in a number of areas it's simply not happening
that way," he said. In some cases, the changeover was being used as a "sad
excuse" to raise prices.

Mr Jewell said one patron of a Dublin city-centre pub contacted the
Consumers' Association when he noticed that an average of 6p had been added
to the price of most drinks. This would "make things handier" for the
changeover to the euro, he was told.

Service providers and retailers can be investigated and "named and shamed"
but ultimately the power to stop unfair practices lies with the customer,
said Mr Jewell.

"It's the consumer who is going to decide whether or not they want to give
their business to that type of trading."

Ms Pauline Mulligan, euro information officer with the Office of the
Director of Consumer Affairs, said there was plenty of "anecdotal" evidence
that prices were being raised in advance of the euro becoming legal tender
in the State.

People were particularly concerned that typical supermarket prices such as
£1.99, £2.99, and so on would be rounded up.

She said large retailers such as Dunnes Stores had told her such price tags
had been phased out in recent years.

She said the Office of Consumer Affairs approved of the "rounding" up or
down of converted prices to two decimal places but not of "smoothing" prices
to an unequal amount.

The New Year was a popular time for retailers and service providers to up
their prices and the introduction of the euro was not necessarily to blame,
she said.

"People are ringing saying the price of x, y and z is going up. What we're
saying is that prices will go up and that won't change with the euro coming
in."

Ms Mulligan said she welcomed a by-product of the changeover - the fact that
consumers had become increasingly aware of prices.

The Office of the Director of Consumer Affairs will investigate any
situation where a consumer spots a discrepancy in price conversion. This
will be the case whether or not the business in question is signed up to the
voluntary national code.

However, Ms Mulligan advised consumers to point out any discrepancies when
and where they spot them.

She mentioned the recently published survey which found that 96 per cent of
dual pricing in the State was correct.

Incorrect pricing was often a result of a genuine mistake, she said.

One retailer had multiplied his prices by 1.27 rather than dividing by
0.787564. Others had divided by 0.79.

"They're reasonable mistakes to make. It's not completely off the wall. We
didn't find any cases where there was a blatant attempt to rip people off."

Ms Mulligan said the survey had found that the majority of staff had a
working knowledge of the euro and would be well equipped to handle queries
and complaints.

On a seasonal note, if you're planning to take the family to a performance
of the Christmas pantomime, Sleeping Beauty, in Cork Opera House next month,
you will be asked to part with some rather unwieldy amounts of money for
your tickets.

Prices are £9.06, £10.24, £11.81 and £13.39. After the New Year, of course,
these prices will convert into the more manageable €11.50, €13, €15 and €17.
Last year's prices for performances of Cinderella cost £8 - £10.


Next Tuesday: How will shops - and their customers - cope with the
changeover?
And on Friday, Business This Week 2 will examine the efforts of continental
Europeans to spend undeclared currency.

EURO CONTACT:
Readers with queries can email [EMAIL PROTECTED] or write to Euro Queries,
Irish Times, 10-16 D'Olier Street, Dublin 2. The Office of the Director of
Consumer Affairs can be contacted at Lo-call 1890 220229.




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