Pubs, garages and travel agents are facing €3,000 fines for failing to display correct prices or misleading consumers under a law that came into force this week.

Sections of the new Investment Funds, Companies and Miscellaneous Provisions Act increase the maximum fines that can be imposed on businesses for breaching a range of consumer protection legislation.

The law increases the maximum fine on conviction in the District Court for offences against consumer protection legislation to €3,000.

The biggest increase is from the €127 imposed for breaches of the Prices Acts, which demand that pubs, garages, hair dressers and other businesses display correct prices for their goods and services in a prominent position on their premises.

It also raises the maximum fine under Package Holidays and Travel Trade Act from €1,905 to €3,000.

This legislation governs the information about prices and terms that travel agents and tour operators are obliged to disclose in brochures and contracts.

Director of consumer affairs Carmel Foley said the new fines would help ensure that businesses comply fully with their legal obligations to consumers.

"I have been concerned for some time that the low level of fines, some of which dated back over 30 years, were not a real deterrent," she said.

The new fines will also apply to investment intermediaries who fail to comply with consumer credit legislation, and to retailers and other businesses who breach sale of goods law.

The act also establishes a legal framework for pooling pension funds in the Republic.

Many companies, particularly multinationals, operate different pension funds in different jurisdictions. Pooling the funds allows them to cut costs and risk.

The Dublin Funds Industry Association (DFIA) welcomed the legislation, saying it would maintain the State as a domicile of choice for investment funds.