Minister of State Teo Ser Luck's Reply to Parliament Question on Errant Retailers

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Minister of State Teo Ser Luck's Reply to Parliament Question on Errant Retailers

Questions

Dr Lim Wee Kiak: To ask the Minister for Trade and Industry in respect of recalcitrant retailers indulging in unethical sales practices (a) what is the Ministry doing to step up enforcement against such offenders; and (b) whether the Ministry will consider (i) enhancing the penalties for such offenders and (ii) barring the convicted owners of these companies from registering any new business for a period of time.

Mr Lim Biow Chuan: To ask the Minister for Trade and Industry whether the Consumer Protection Fair Trading Act can be amended to allow a specified body to take up criminal prosecution against errant traders and their directors or proprietors for breaches of the Act.

Er Dr Lee Bee Wah: To ask the Minister for Trade and Industry in light of complaints against dishonest retailers in Sim Lim Square (a) whether the Ministry will consider enhancing the penalties against such business practices under the Consumer Protection (Fair Trading) Act; (b) whether joint action by the Ministry and the police will be taken against these businesses; and (c) what other recourse is there for consumers who have been cheated apart from reporting to the Consumer Association of Singapore.

Ms Denise Phua Lay Peng: To ask the Minister for Trade and Industry in light of the highly publicised cases involving a mobile phone retailer in Sim Lim Square and two tourists (a) what are the options available and what steps will the Ministry take against these errant retailers; and (b) what will the Ministry do to reduce similar incidents of unfair and bullying business tactics applied by errant traders, especially on tourists, in Singapore.

Mr Liang Eng Hwa: To ask the Minister for Trade and Industry (a) whether the existing consumer protection and fair trading laws are adequate to deter unfair trading practices by errant retailers; and (b) whether enforcement and investigative powers can be stepped up take recalcitrant errant retailers to task.

Ms Irene Ng Phek Hoong: To ask the Minister for Trade and Industry (a) whether the bad publicity arising from errant retailers in Sim Lim Square has affected the international reputation of Singapore as a tourist destination and shopping hub and, if so, how; (b) what other actions can be taken against such retailers promptly when reported; (c) whether the existing laws are adequate to protect consumers against such errant retailers; and (d) whether there are mechanisms to check or ban errant retailers from setting up shop under different names.

Mrs Lina Chiam: To ask the Minister for Trade and Industry (a) whether the Ministry keeps track of consumer complaints received by the Consumers Association of Singapore (CASE); (b) if so, what is the total number of CASE complaints received in the last 10 years against errant retailers at Sim Lim Square, Lucky Plaza and People's Park Centre; (c) what is the total number of successful remedies accorded to consumers against errant retailers at the three shopping malls for defective goods covered under the Consumer Protection (Fair Trading) Act; and (d) whether the Ministry will consider publishing a blacklist of recalcitrant retailers at airports and major commercial hubs.

Mr Hri Kumar Nair: To ask the Minister for Trade and Industry whether the Ministry will consider establishing a consumer protection agency to investigate and enforce consumer protection laws in Singapore.

Mr Yee Jenn Jong: To ask the Minister for Trade and Industry whether the Government will consider legislation or regulations to give more teeth to Government agencies and management corporations of retail spaces to tackle errant retailers.

Oral Answer by Mr Teo Ser Luck, Minister of State for Trade and Industry

1. The Government’s approach to consumer protection is based on promoting fair trading among retailers, and helping consumers make informed purchasing decisions.  This approach has benefited consumers and businesses, as the vast majority of our retailers are legitimate businesses who want to serve their customers well and have established practices to resolve consumer complaints.

2. Unfortunately, there are a small number of errant retailers who engage in unfair trading practices to take advantage of their customers, both local consumers and tourists.  We need to take action against such retailers who affect consumer confidence and dent Singapore’s reputation. 

3. Currently, the majority of consumer complaints are handled by the Consumers Association of Singapore (CASE) and are resolved through discussion or mediation between the parties, or by consumers going to the Small Claims Tribunal (SCT) to seek financial compensation.  Over the past three years, CASE has received about 2,000 complaints against retailers in Sim Lim Square, Lucky Plaza and People's Park Complex.  CASE has followed up on these complaints and mediated 1,400 cases.

4. The Government will work with CASE and SCT to streamline the existing claims process so that quicker action is taken to help consumers obtain compensation.  We will also review the relevant legislation to strengthen the enforceability of rulings by SCT.

5. Egregious cases, including recent incidents involving some retailers at Sim Lim Square, will be investigated by the Police under the Penal Code.  Retailers who are found to have engaged in activities involving cheating, fraud or intimidation will face criminal prosecution in Court.

6. CASE and the Singapore Tourism Board (STB) are empowered under the Consumer Protection (Fair Trading) Act (CPFTA) to seek injunction orders against errant retailers through the Courts. 

7. The Government will review the legislation to strengthen the provisions so that quicker action can be taken to deter unfair trading practices, and prevent errant retailers from side-stepping restrictions under the CPFTA by forming new companies.  We will study the option of appointing an agency to undertake the investigation and enforcement functions. As part of the review, we will study the best practices and experiences of other jurisdictions, including Hong Kong and Australia, and conduct further consultation with stakeholders. We will conclude the review and move the necessary amendments this year. While we strengthen the law, we need to strike a balance between the consumers and the businesses.

8. It is not necessary to put up displays at Changi Airport as this would give visitors a wrong impression when the vast majority of retailers in Singapore are bona-fide.  It is more appropriate to tackle these issues at the local level.  For example, CASE and STB have been working with Sim Lim Square’s Management Council to provide the public with more information about complaints against specific retailers.  The Management Council is also looking at ways to enhance their landlords’ tenancy agreements and raise service standards of retailers at Sim Lim Square.

9. Improving consumer protection and promoting fair trading requires the collective efforts of the Government, CASE, consumers and industry players.  In reviewing the legislation, MTI will take a balanced approach to protect the interests of consumers, while supporting business growth and enhancing market competitiveness.  MTI will continue to work with CASE and industry players to step up consumer education efforts to enhance consumers’ awareness of their rights, and help them make informed buying decisions.