The Tánaiste and Minister for Finance, Simon Harris TD, has signed into law new rules that will strengthen protections for consumers purchasing financial products or services online or over the phone.
These include the right to speak to a person instead of an AI chatbot when buying financial products or services either online or over the phone. The changes mean someone can request human intervention, rather than relying solely on automated online systems.
The new rules will ensure consumers:
- can request human intervention rather than relying solely on automated online systems when buying a financial product or service;
- will receive clearer information before signing up for financial products or services bought online or over the phone;
- will be better protected from marketing practices designed to influence or pressure purchasing decisions; and
- can more easily withdraw from eligible online financial contracts through a clear and accessible cancellation function.
The regulations are part of an EU directive on financial-services contracts concluded at a distance with stronger protections for people buying financial products or services online or over the telephone.
Tánaiste and Minister for Finance Simon Harris said that online consumers should have the same protections as those buying in person. “More and more people are choosing to buy financial products and services online, and consumers should have the same confidence and protections in the digital marketplace as they do in person. These new rules put consumers first and make sure their rights keep pace with how people now access financial services.
“Whether it’s the right to speak to a real person instead of relying solely on an automated system, clearer information before making a decision, or an easier way to cancel an eligible contract, these are practical changes that will make a real difference for consumers.
“Digitalisation has significantly changed the financial services market in Ireland. While the existing financial consumer protection framework is robust, the rules I have signed into law today will ensure that the framework continues to keep pace with the increasingly digitalised financial services landscape and maintains the high level of protections for consumers.”
Customers will also be better protected from marketing practices that are designed to influence or pressure purchasing decisions, and this means that consumers can easily withdraw from eligible online financial contracts through a clear and accessible cancellation function.
NB – This is a guide for information purposes only and does not constitute legal advice. If you have an issue requiring legal advice, please contact any of the team at Nolan Farrell & Goff LLP, whose numbers can be found on our website www.nfg.ie, or email info@nfg.ie.
