Knowing your rights & responsibilities
Trending consumer issues
1. Eshop hidden membership fees (Fashion Interactive: GLMRS)
- Details of membership programme were hidden in fine print
2. Unfair practices of beauty salons
- Common practices: pressure sell you
3. Sudden closure of gym (Energym 24/7)
- No refund in membership fees
- Advice: go for pay-per-use, and not pay for such a big lump sum at once
CPFTA (Consumer Protection Fair Trading Act)
1. Unfair practices
- Misleading / false claims
Do/say something /omit to do or say anything which may result in a consumer
being reasonably deemed to have been deceived or misled
Make a false claim
- Wrong country of origin as claimed
- Switch-baiting (consumers bought something they didn’t want to buy
initially because the thing that was advertised was out of stock, but still
promoted by advertisers)
Eg. Huawei smartphone promotion
- May be misleading
- Attempted to bring consumers there to persuade them to buy another product
- Cleared up misunderstanding - give vouchers to let people buy another phone
- Taking advantage of consumers
Firm knows or reasonably should have known that the consumer is not in a
position to protect his own interests AND is not reasonably able to understand
matters related to the transaction.
Eg. Pressurised to buy something and not only browse through when shopping
Eg. Insurance agent making someone who doesn’t understand english to sign 40pages long
of insurance document even with knowledge that consumer does not understand english
without helping to translate
Eg. Elderly cleaner coerced to buy more than $13k of beauty package in a beauty wellness
shop in Suntec city
- Example under second schedule of CPFTA
2. Defective goods (lemon law)
- Covers goods that are defective AND different from what is stated in the
contract
- 2 stage recourse framework
1. Repair / Replacement
2. Reduction in price / Refund (typically for specialised products eg
artwork)
Seeking redress
1. Negotiation (through CASE)
2. Mediation (CASE Mediation Centre)
- Promotes win-win solution for both parties
- Better alternative to litigation (less costly, time saving)
- Maintain amicable relationship (idea, options and solution come from both
parties themselves, greater incentive for both parties to comply, different from
paper judgement in court, which still needs enforcement to resolve)
- Legally binding settlement agreement
- Confidentiality (no reporters, etc and can maintain image or reputation for
both parties) - similar to both parties coming to a private settlement in court
3. Small Claims Tribunals
- Not part of gov, part of judiciary
- Claims should not exceed $20k by default, $30k by mutual consent, any more
than that must be go t court (most consumers don’t spend more than $20k on
a good or service on a day to day purchase)
- Must be filed within 2 years
- Lawyers are not allowed be represent any of the parties in proceedings
Enforcement action
Injunction by Competition and Consumer Commission of Singapore (CCCS)
- Court order to restrain a business or individual from continuing the unfair practice
- Requires business or individual to publicise that they are under injunction
Eg. Online retailer that misled customers into signing up for recurring subscription
Eg. Car importer SG Vehicles receives court order to stop unfair trade practices (not to force
the firm to wind up)
Consumer Tips
Preemptive
1. Making informed decisions
- Check reliability & reputation of firm
- Compare prices bt dif retailers prior to purchase
→ Hard if we are enticed by the price & forget to compare, becomes irrational
(bought on impulse/buyer’s regret), not all consumers are rational
→ CASE developed an app called Price Kaki
- Pay close attention to the terms and conditions of a contract before making a
purchase
2. Safeguard your prepayment
- Ask about refund policy for prepayment before agreeing to the deal
- Patronise platforms that have prepayment protection
Eg. Shopee: when consumer pays the money, the money doesn’t go to the
seller directly, money will only go to the seller if consumer is pleased with
purchase (Shopee act as a middlemen)
Eg. Qoo10
→ Don’t confirm purchase before you receive check through it because you were
enticed by the deals and benefits, else you may not get a refund
- File a chargeback with your credit card issuer should a purchase goes awry
3. Shop online cautiously
- Beware of incomplete price info such as optional fees during a transaction or
payment process, resulting in a final price that is higher than advertised
- Look out for pre-ticked boxes and make sure to deselect anything they do not
want to purchase
- Be wary of misleading claims that create unwarranted pressure or sense of
urgency to make an immediate purchase
→ Countdown clock (11:11 or black friday sale) - pray on consumer’s FOMO
mindset
