Question:
Mr Sitoh Yih Pin, Member of Parliament for Potong Pasir SMC: To ask the Minister
for Trade and Industry (Industry) whether there are any plans to regulate the
quantum and/or length of prepayment schemes offered by businesses identified to
be most at risk of default.
Answer:
- Given the wide range of businesses that offer prepayment
schemes, it is challenging to impose broad-based measures that would protect
consumers against loss of prepayments. Also,
such measures would inevitably raise the cost of doing business which would be
passed on to consumers. Most overseas
jurisdictions also recognise these challenges and generally do not impose
broad-based prepayment protection measures.
- However, our government agencies are studying the need and
scope for targeted sector-specific measures to protect consumers against the
loss of their prepayments. The Consumers
Association of Singapore (CASE) has also worked with industry associations to
develop CaseTrust accreditation schemes for specific industries including spa
& wellness, renovation and motor workshops. The majority of these industry-specific
schemes offer prepayment protection for consumers and we encourage consumers to
patronise CaseTrust accredited businesses.
- In general, our approach to consumer protection is to promote
fair trading practices and to help consumers make informed purchasing decisions
including those that involve prepayments.