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Saturday, August 19, 2017

Did you know LEMON LAW & CPFTA (The Consumer Protection (Fair Trading) ?

The Consumers Association of Singapore (CASE) is a non-profit, non-governmental organisation that is committed towards protecting consumers interest through information and education, and promoting an environment of fair and ethical trade practices. One of our key achievements is in advocating for the Consumer Protection (Fair Trading) Act (CPFTA) which came into effect on March 1, 2004. 

 

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CONSUMER GUIDES  |  STATISTICS
CASE STATISTICS RELEASED FOR THE YEAR 2016
The Association had received a total of 19,102 complaints for the year 2016. Out of 19,102 complaints, CASE has taken up 1,763 cases in the year 2016.
TOP 10 CATEGORIES
The chart below shows the Top 10 categories


CASE MEDIATION
Since the inception of our mediation centre in 1999 and as part of its process, CASE has arranged for mediation between disputed parties.
There were 133 cases resolved in the year 2016. This accounts to a 70.74% resolve rate.
CONSUMER PROTECTION (FAIR TRADING) ACT 2003 ("THE ACT")
This Act provides the legislative framework to allow consumers aggrieved by unfair practices to have recourse to civil remedies before the courts. It also provides for a cooling-off period for direct sales and timeshare contracts, and allows specified bodies to enter voluntary compliance agreements with, or apply for injunction orders against errant traders - Ministry of Trade and Industry, Singapore.

On doing a year to year comparison, the number reported breaches of the Act by consumer are as presented in Table 2 below:

Disputes received under the Act (Filed)
Year
Disputes received under the Act
2015
1,175
2016
978


The Top 3 industries, whose business practices or products are reportedly suppose to have breached the Act, are presented in Table 3:

Top 3 industries that have been breaching the Act in 2016 (Filed)
Ranking
Industry
1
Motorcars
2
Beauty
3
Electrical and Electronics


Top 3 industries that have been breaching the Act in 2016 (Assisted)
Ranking
Industry
1
Motorcars
2
Handphones
3
Contractors
VOLUNTARY COMPLIANCE AGREEMENT ("VCA") / INJUNCTION
Voluntary Compliance Agreement is a voluntary document signed by a business whereby the business admits to committing unfair practices under the Consumer Protection (Fair Trading) Act and promised not to commit further unfair practices. Should the business commits further unfair practices, CASE may take out an injunction/declaration proceedings against the business. Injunction proceeding is to stop the business from further carrying out the unfair business practices.

Table 4 below presents the number of VCAs that have been voluntarily signed by businesses since 1 March 2004 to 31 December 2016. Table 5 presents the injunction/declaration proceedings that have been taken against the businesses in the same period.

VCAs that have been voluntarily signed by businesses
(1 March 2004 - 31 December 2016)
Total
Consolidated VCA and Undertakings
21


Injunction/Declaration Proceedings that have been taken out against businesses
(1 March 2004 - 31 December 2016)
Total
Injunction/Declaration Proceedings
6


List of companies that CASE have taken out Injunction / Declaration Proceedings
  • Orion’s Belt Network Pte Ltd
  • Global Europ (Asia) Pte Ltd
  • Naughty By Nature Pte Ltd
  • Garraway Enterprises Limited Singapore Branch
  • Concord Developments Pte Ltd
  • Mr Chiok Wee Juo Trading As Olena, Bez Gallery and The Exquisite Promenade
Pending Declaration/Injunction Proceedings as of 31 Dec 2016
Total
Pending Declaration/Injunction Proceedings
0


List of companies that is pending Declaration / Injunction Proceedings
NIL

Company Alert List


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Case Studies For August 2017

Case Study #1
In October 2016, Mdm Lim* bought an air-conditioner unit at $3,300, which included transport and installation of the unit at her residence. Shortly after the installation, the air-conditioner broke down multiple times. The company sent a technician to repair the air-conditioning unit, but to no avail. Mdm Lim was then given a verbal promise by the company to return the defective air-conditioner for a full refund. However, three months passed and there was no further action taken by the company. Mdm Lim thus approached CASE and requested assistance to expeditiously resolve the matter.
CASE highlighted Section 12A Lemon Law – Defection Goods of the Consumer Protection (Fair Trading) Act to the company. Under the Lemon Law, businesses are obliged to repair or replace a defective good. If this is not possible, businesses can provide a refund or reduction in price of the defective good. The company eventually sent a technician to uninstall the air-conditioner and refunded Mdm Lim in full.

Case Study #2
In January 2016, Mr Chen* paid $1,040 for round trip air tickets for three people to China on 10 March. Three days later, he called the airline and requested to change the flight date to 11 March instead. He obtained verbal confirmation over the phone that all three tickets were settled and paid the necessary administrative fees for the change in the flight date. On 11 March, Mr Chen found out that only one air ticket was confirmed when he attempted to check-in for the flight. Thus, he had to pay $420 for two air tickets to China on the same flight. Mr Chen requested for a reimbursement of the additional charges incurred.
Under Section 4(b) of the Consumer Protection (Fair Trading) Act, it is an unfair practice to make false claims in relation to a consumer transaction. CASE negotiated with the airline and the airline agreed to waive the $420 paid for the new flight arrangements.

Case Study #3
In September 2016, Ms Teng* visited a beauty salon for mole removal services. The beautician informed her that she would need to pay $10 to remove each mole. Subsequently, four moles were removed from her skin. After the mole removal was completed, the beautician applied some liquid solution on the consumer’s skin and informed her that the bill was $128 in total. Ms Teng disagreed as she was not informed that she would need to pay for the solution, which would supposedly aid the skin in healing without scarring. Furthermore, the bottle of solution had no brand, origin or ingredients stated on the bottle. Thus, Ms Teng asked for a refund of $88.
CASE highlighted to the beauty salon that it was an unfair practice under the CPFTA to omit to do or say anything, if as a result, the consumer might reasonably be deceived or misled. The salon eventually agreed to refund $88 to Ms Teng.

Case Study #4
In November 2016, Mr Lum* applied for a credit card from a bank through their website as he would be entitled to a free limited edition watch worth $150 if he used the card within three days of the application. He was informed that the credit card would be delivered to him within 24 hours. However, Mr Lum failed to receive the card after 24 hours had passed. He called the bank to enquire on the status of the delivery. The bank informed him that the card had already been sent out. Two days later, the bank called Mr Lum again and clarified that the reason behind the delayed delivery was that they had forgotten to put his house unit number on the letter. Due to the delay in delivery, Mr Lum could not use the credit card and thus missed out on the limited edition watch promotion.
CASE contacted the bank on behalf of Mr Lum. After some negotiation, Mr Lum was able to receive the limited edition watch and $30 shopping mall vouchers from the bank.

*Please note that surnames have been changed to ensure the privacy of the consumers.

Should you find yourself in a similar situation, please do not hesitate to seek assistance from CASE. For general enquiries, you can call our hotline at 6100 0315 between 9am and 5pm from Mondays to Fridays and between 9am and 12pm on Saturdays. For an in-depth consultation with our officers, please visit us at 170 Ghim Moh Road, #05-01 Ulu Pandan Community Building, between 9am and 4pm from Mondays to Saturdays. You can also file a complaint online here.

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CONSUMER GUIDES  |   

CPFTA & LEMON LAW

 

 

The Consumer Protection (Fair Trading) Act

The Consumer Protection (Fair Trading) Act (CPFTA) is the result of years of relentless advocating by the Consumers Association of Singapore (CASE). What we see today is a testimony to the continued dedication of countless consumer advocates and volunteers over the years.

The driving force behind CASE is our firm belief that we need fair trading legislation to promote a fairer and more equitable marketplace. The law will protect both consumers and traders by making the playing field more level. In 1979, the late Mr Ivan Baptist, then President of CASE, first urged the government to consider a fair trading legislation in the Parliament.
Why it began?
The push for this Act began with the observable increase in the number of errant traders and unethical business practices over the years. As a consumer organisation, CASE has come across numerous instances where consumers sought our help when they fell victim to unscrupulous business tactics. These included high-pressure selling tactics and aggressive door-to-door salespersons, amongst others.
What we are advocating for...
We want to create a fair trading environment for consumers and businesses alike.
Outcome today...
The CPFTA took effect on 1 March 2004. Since then, consumers who have been at the receiving end of unfair practices have been empowered to take civil action for themselves. The Act sets out a list of specific unfair trade practices and empowers them to seek civil remedies. It is the responsibility of the business to prove that it did not commit the unfair practice. However, businesses that commit unfair trade practices will not be subject to criminal sanction as the CPFTA is not a criminal Act.

Since 15 April 2009, the CPFTA was amended to cover financial products and services. This and other amendments were made to widen the scope of protection offered to consumers and facilitate a fairer trading environment for both consumers and businesses. The legislation protects consumers, without adding onerous burden to businesses and costs.

Consumers and businesses are urged to understand the Law better, so as to reap the most benefits from it. To find out more about the CPFTA, download the brochure here.
Consumer Protection (Fair Trading) Amendment Bill
The Consumer Protection (Fair Trading) Act (“Act”) was amended in 2016 to strengthen the measures that may be taken against errant retailers who persist in unfair practices. Under the amended Act, SPRING Singapore (SPRING) will be the administering agency for the CPFTA and will have investigative and enforcement powers to take timely actions against recalcitrant retailers.

CASE and the Singapore Tourism Board (STB) remain the first points of contact for local consumers and tourists respectively to handle complaints. Consumers who wish to lodge an online complaint with CASE can do so here.

The amended CPFTA also includes refinements to the definitions of unfair practices in the Second Schedule of the CPFTA. Some of these were from feedback provided by CASE, such as clarifying that it is an unfair practice to refuse the consumer’s request for a copy of the applicable agreement if none had been previously given.


Paragraph 24 of the Second Schedule of the Act

Based on consumers’ feedback that businesses sometimes do not provide a copy of a contract to the consumers (when requested by consumers), CASE recommended to the Ministry of Trade and Industry during the public consultation for the Act to make such a practice an unfair practice. This recommendation was incorporated in paragraph 24 of the Second Schedule of the Act.

Paragraph 24 of the Second Schedule of the Act states:-

"where an applicable agreement has been entered into in writing and a copy of the applicable agreement has not been given to the consumer, refusing to give the consumer a copy of the applicable agreement upon the consumer’s request."

What is an applicable agreement?

An "applicable agreement" means an agreement between a supplier and a consumer for the supply of goods or services which expressly provides that -

1a) the goods or services will not be supplied or, in the case of an agreement to supply goods or services over a period of time, will not begin to be supplied, to the consumer until the price, or part of the price, of the goods or services has been paid; and
(b) the price of the goods or services is to be paid by 2 or more instalments.
(2) In sub-paragraph (1)(b), any deposit paid by the consumer for the goods or services is treated as an instalment.

Consumers may find applicable agreement in renovation contracts, foreign domestic workers employment agencies contract, purchase of motor cars, and other contracts which provides for part payment.

Clauses which permit the business to withhold the provision of goods or services until part or full payment is made will fall within the definition of an applicable agreement.

Model Contracts

CASE’s mission is to champion consumers’ interest and promote fair trading. At law, CASE notes that a party that signs its acceptance to the terms and conditions of a contract is treated as bound by their signature. As such, CASE recommended that suppliers should be required to provide the contract to the consumers to allow consumers to take reference to their rights and obligations under the contract as this is in line with our mission. At the same time, CASE would like to urge all consumers to carefully read the terms and conditions of the contract before signing.

To assist businesses to comply with their obligations under the CPFTA while protecting consumers through the use of model contracts, consumers are also encouraged to shop from CaseTrust accredited businesses. This is because businesses accredited under selective CaseTrust accreditation schemes are required to utilize the CASE-Approved Agreement template with their customers, as part of their accreditation requirement. Businesses may refer to CASE’s model contract at here.

About CaseTrust

CaseTrust’s standards are maintained in an unbiased manner, and that its accredited businesses are kept abreast of consumer trends and new developments in the industry. The CaseTrust Department was formed as a Secretariat in 1999 under the initiative of CASE. It was an accreditation scheme targeting the service and retail industry to spearhead businesses towards excellence by means of adopting fair business practices.

A shop which displays the CaseTrust Logo signifies fairness and honesty in its dealings with consumers.

Interested to find out more about CaseTrust, click here.

Lemon Law
The Lemon Law came into effect on 1 September 2012. Provisions of the Lemon Law have been added to the Consumer Protection (Fair Trading) Act, with related amendments to the Hire Purchase Act and Road Traffic Act.

The Lemon Law is a consumer protection law that provides remedies against defective goods (colloquially known as “lemons”), which fail to conform to the contract at the time of delivery, e.g. do not meet standards of quality and performance, especially after repeated repair. Under the Lemon Law, consumers may require the business to repair, replace, reduce the price of the goods or perform a refund if the goods are found to be defective. For defects that occurred within a period of six months from the date of delivery, it is presumed that the goods failed to conform to the implied condition of satisfactory quality at the date of delivery. However, Lemon Law does not cover individuals who contract in a business capacity or on behalf of a company. In this regard, private-hire cars are not covered under Lemon Law.

To find out more about the Lemon Law and how it will affect you as a consumer or business owner, refer to the following:
  1. The Ministry of Trade & Industry’s webpage
  2. Frequently asked questions.
  3. Brochures
For more information on the CPFTA and the Lemon Law, you can also purchase our Fair Trading & You Booklet at our CASE office at 170 Ghim Moh Road, Ulu Pandan Community Building for $3.21 (include GST).

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Online Submission

Case Submission

All applications must be accompanied by relevant documents such as receipts, agreements, credit card slips, letters, etc.

Please complete the form below on details of your complaint and submit to us. After the officer assessed your case, if you need us to handle it, you will need to join us as a member, as we are an Association.

Membership Fees

No.
Type of Membership
Amount (GST inclusive)
1.
Life
$428
2.
Family
$32.10 per annum
3.
Ordinary/Single
$26.75 per annum

If a case is taken up by a CASE Officer an administration fee is charged according to the claims.
Please let our officers know if you are:
- You are a member of a Trade Union or Association that happens to be a CASE Institutional Member;
- You have an individual life insurance policy from NTUC Income;

With effect from 1 January 2015, for the above, your admin and membership fee will be waived subject to you producing the necessary documentation proof.

Note: NTUC Link Card does not qualify you for a waiver.

If you are a staff of CASE Corresponding members, you will enjoy waiver of membership fee and only has to pay the necessary administration charges.

Administration Charges

No.
Range of Claims
Admin Fees (GST inclusive)
1.
Below $5,000
$10.70
2.
$5,000 to $10,000
$21.40
3.
$10,001 to $20,000
$53.50
4.
Above $20,000
[Every $10,000 or part thereof ]
$53.50

Compulsory Fields are in Bold

Personal Particulars
Family Name
Given Name
NRIC No
Date of Birth
Occupation
Education Level
CASE Member
 Yes  No
CASE Membership No
Date Joined
Membership Type
Race
Gender

Contact Information
Block / House number

Street Name

Building / Estate Name

Unit number

Postal Code
S
E-mail Address (Not compulsory for walk-in consumers)
Please provide at least ONE telephone number
Phone (Home)
Phone (Office)
Phone (Mobile)
Fax

Vendor Address
Vendor Name
Vendor Block / House number

Vendor Street Name

Vendor Building / Estate Name

Unit number

Vendor Postal Code
S

Vendor Phone

Vendor Fax


Vendor Email

Vendor Website



Declaration
Are you a member of any Union/Association/Co-operative?
Please fill in NIL if not applicable
Union
Co-operative


Association
 Yes  No

Others

Complaint Information
CaseTrust Accredited?
 Yes  No   [View List]
Nature of Complaint
Industry Type
Transaction Type
Transaction Date
Desired Outcome
Total Contract Value (nearest S$)
S$.00
Quantum Claimed (nearest S$)
S$.00
Online Transaction
 Yes  No
Complaint Summary (no more than 100 words)
(Not necessary for walk-in consumers)
Attach Supporting Documents (Maximum 5MB)
(Not necessary for walk-in consumers)
I agree that by submitting my complaint, I consent to the use of my personal data in accordance with CASE’s Personal Data Policy as may be amended from time to time.


Please wait for acknowledgement that your submission is successful.
I agree that by submitting my complaint, I consent to the use of my personal data in accordance with CASE’s Personal Data Policy as may be amended from time to time.


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