Irish consumers are facing increased scrutiny over a practice known as the “loyalty penalty,” where companies charge long-term customers higher prices than new ones. The issue was highlighted on RTÉ Radio 1’s Today with Claire Byrne program earlier this week, prompting a wider discussion about consumer rights and market practices.
The practice spans multiple sectors, including banking, insurance, and subscription services, according to reports. While switching providers isn’t always straightforward, the financial incentive to do so is becoming increasingly apparent. RTÉ’s coverage indicates that companies often offer attractive introductory rates to gain new business, while existing customers are left paying a premium for their continued loyalty.
The debate comes as the Irish government considers new legislation aimed at protecting consumers from such practices. The Consumer Protection (Loyalty Penalty and Customer Complaints) Bill, discussed on RTÉ Brainstorm on February 6th, 2026, seeks to address the imbalance between new and existing customer pricing. The bill aims to empower consumers and provide avenues for redress when they are subjected to unfair pricing due to their loyalty.
RTÉ’s reporting suggests that the loyalty penalty is not a new phenomenon, but its impact is being amplified by the current cost of living crisis. Consumers are more actively seeking ways to save money, leading to increased awareness of these pricing discrepancies. The radio program featured discussions on identifying the best current account options, suggesting that even basic financial products are subject to this practice.
The issue extends beyond financial services. Subscription-based businesses, for example, may offer significant discounts to attract new subscribers, while long-standing customers continue to pay full price. This has led to calls for greater transparency in pricing and a more level playing field for all consumers.
As of today, February 20, 2026, the Consumer Protection (Loyalty Penalty and Customer Complaints) Bill is still under consideration, and its final form and implementation date remain uncertain. RTÉ has not reported on any immediate government response to the recent surge in public awareness surrounding the loyalty penalty.
