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The Consumer Protection (Fair Trading) Act (CPFTA) provides for civil actions which may be taken against errant retailers who persist in unfair practices. Singapore adopts a balanced approach to consumer protection. The majority of retailers in Singapore are legitimate businesses and overly onerous measures can impose unnecessary costs which would ultimately be passed on to consumers
MTI regularly reviews the Act to ensure that it remains relevant and provides adequate protection for consumers. There are two key amendments to strengthen the current measures that may be taken against errant retailers who persist in unfair trading practices and side-step injunction orders.
Legislative changes
(A) SPRING Singapore appointed as the administering agency
SPRING Singapore (SPRING), a statutory board under MTI will be the administering agency for the CPFTA with investigation and enforcement powers. SPRING will be empowered to gather evidence to file timely injunction applications and ensure that errant retailers comply with the injunction orders issued by the courts. These include power to enter premises under and without warrant, require the production of documents and seize goods. SPRING may also take errant retailers who do not comply with injunction orders to court for contempt of court. This is targeted to be effective by end 2016.
(B) Additional measures that the Courts may impose on errant retailers
To raise consumer awareness of retailers who are under injunction, the courts may order the errant retailers to publicise that they are under injunction. To prevent retailers from side-stepping injunction orders by setting up new entities, the Courts may also require retailers under injunction to inform the administering agency of any changes to their entity and/or employment status.
Benefits of the amendments
Consumers will be able to shop with greater confidence in Singapore and be assured that firm and timely action is taken against errant retailers. Businesses that are legitimate and engage in fair trading will not be affected by the changes.