Lim Hng Kiang at the Consumers Association of Singapore (Case) 35th Anniversary Gala Dinner

Mr Yeo Guat Kwang, President of CASE,

Members of CASE Central Committee,

Distinguished guests,

Ladies and Gentlemen,

It is my pleasure to join you tonight at CASE’s 35th Anniversary Gala Dinner. I wish to extend my heartiest congratulations to CASE, its past and present Central Committees, as well as to the staff of CASE, for your contributions towards the consumer movement in Singapore.

CASE and CPFTA

Since its formation in 1971, CASE has been playing an active role to enhance the consumer protection framework in Singapore. In particular, CASE played an instrumental role when it co-led a joint public-private taskforce that contributed to the enactment of the Consumer Protection (Fair Trading) Act (CPFTA) in 2004. CASE’s work did not stop there. After the Act came into force, CASE continued to help consumers to resolve their issues through the Act, and play an active role in reviewing and improving the Act.

Over the past year, CASE, together with the Ministry of Trade and Industry, co-chaired a Taskforce to review the Consumer Protection (Fair Trading) Act.

Amongst the issues that the Taskforce identified were concerns that consumers are sometimes required to pay for unsolicited goods or services. For instance, goods or services are sometimes provided on a free trial basis, with or without the consent of the consumer, where the burden is on consumers to opt-out from the arrangement when the free trial period ends. Consumers may forget when the free trial period ends. The Taskforce felt that consumers should be given the opportunity and ample notice to make a conscious decision whether to accept and pay for goods and services.

The Taskforce also looked at improving existing regulations to enhance consumer protection. For instance, some suppliers may circumvent existing consumer protection regulations which give consumers a three-day cooling-off period for timeshare and direct sales contracts, by claiming that a visit to a consumer’s home was not unsolicited, but rather, conducted with the consumer’s consent. The Taskforce felt that existing regulations can be tightened so that the three-day cooling-off period can also apply to such sales.

As the issues deliberated by the Taskforce affect the public at large, the Ministry of Trade and Industry will be conducting a public consultation to gather the feedback from the public and interested parties on proposed changes to regulations. Preparations for the public consultation (targeted by early next year) are currently underway.

CASE in everyday consumers’ lives

At the national level, CASE has continued to improve consumers’ awareness of their rights and responsibilities through its quarterly magazine “The Consumer”, and publications on specific consumer issues. CASE also has a column in the Straits Times every Friday, entitled “Buyers Beware”, aimed at educating consumers on common unfair trade practices.

CASE conducts periodic surveys and product tests to check on food and product safety, and to verify claims made by retailers. For example, last year, CASE initiated an island-wide survey on expired food products and found that almost 30% of retailers were selling expired food products. After the findings of the survey were widely publicized, CASE’s survey this year revealed only 2% of retailers selling expired food products. This is a huge improvement, and due in no small part to CASE’s work!

Indeed, in voicing the concerns of consumers, CASE has shown itself to be an effective and responsible consumer body.

To the individual consumers, CASE has also proven itself as a body where consumers can turn to for advice and assistance to resolve their consumer issues. In 2005, CASE received over 18,500 complaints and handled close to 1,900 cases. Last year, CASE helped consumers recover some $2.7 million in cash and in kind.

On the international front, CASE has signed Memorandums of Understanding with the Consumer Co-ordination Council of India and the Chinese Consumers’ Association to assist consumers, who can now benefit from CASE’s assistance for their purchases in India and China.
 

CASE’s Role Going Forward

Ultimately, a fair trading environment benefits all parties, both consumers and businesses. While CASE must continue its education efforts to raise awareness on consumers’ rights, consumers must also do their part to learn more about their rights and obligations, and be discerning when making purchases. If an offer sounds too good to be true, it probably is.

Members of CASE’s Case Trust Accreditation Scheme have taken the first step towards building a fair trading environment. I encourage all businesses that are not accredited by Case Trust to consider accreditation to boost consumers’ confidence in their business practices. I would go further as to urge Case Trust members not to stop at the minimum service standards needed for accreditation, but to strive to surpass them. So far, three companies have been awarded the Case Trust Gold status, which requires members to fulfill more stringent criteria than basic members. I hope we will see more companies take on this scheme.

But even with the best efforts by consumers and businesses, disputes are sometimes still unavoidable. Mediation offers a good way for disputes to be resolved amicably, by allowing both sides a chance to better understand each other’s perspective. I am told that the number of mediation cases handled by CASE has increased from 61 cases in 2004 to more than 100 cases this year, and that these mediation cases have a high 80% resolution rate. CASE will continue to encourage mediation as a win-win solution for consumers and businesses.

As a non-profit organization, CASE faces the constant challenge of raising funds to fulfill its mission of protecting and enhancing consumers’ interests. The government will continue to support CASE in its work. We have committed to contribute dollar-for-dollar, up to $5 million, towards CASE’s $10 million endowment fund. I understand that proceeds from tonight’s dinner will go towards CASE’s endowment fund, and I am heartened by your show of support.

I wish to also commend the recipients of the inaugural Friend of CASE Award, for their contributions and support to consumer movement.

Conclusion

On this note, I will like to congratulate CASE once again on the occasion of its 35th anniversary.

I wish everyone an enjoyable evening. Thank you.