PQ on Strengthening Protection for Consumers Who Purchase High Value Packages from Businesses with Knowledge of Their Insolvency

Question:

Mr Alex Yeo: To ask the Deputy Prime Minister and Minister for Trade and Industry in view of the recent closure of a health product and foot reflexology business (a) whether the Ministry has plans to strengthen consumer protection measures for consumers who purchase high value packages from businesses that have knowledge that they are or will become insolvent; and (b) whether the Ministry will consider taking further action against the executives or directors of such companies.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.           Under the Consumer Protection (Fair Trading) Act 2003 (CPFTA), it is an unfair practice for a supplier to exert undue pressure or influence on a consumer to enter into a transaction, or to accept payment for goods or services when the business knows that it will not be able to supply the goods or services. The Competition and Consumer Commission of Singapore can take enforcement action against such egregious suppliers. Consumers who encounter these unfair practices may approach the Consumers Association of Singapore (CASE) to seek redress.

2.           The Government also works with CASE to empower consumers and help them make informed purchase decisions. In addition, CASE has a scheme that accredits businesses committed to fair trading practices and claims on unused prepayments in the event of business closure. Consumers are encouraged to engage CaseTrust-accredited businesses where applicable, especially when transactions involve significant prepayments.

3.           In March 2025, the Government convened an independent Consumer Protection Review Panel led by CASE President Melvin Yong and former judicial commissioner Ms Foo Tuat Yien to review key consumer concerns, including the adequacy of existing protections for high-value package purchases. The Panel, comprising industry stakeholders, legal representatives and academics, is expected to publish its findings and recommendations later this year. The Government will study the Panel’s recommendations and consider the necessary additional measures.