Speech by MOS Low Yen Ling at the launch of the CaseTrust Accreditation Scheme for e-Businesses

Mr Melvin Yong, President of CASE

Mr Russell Chan, Principal and CEO of Nanyang Polytechnic

Distinguished Guests

Ladies and Gentlemen

Introduction

1. Good morning. Thank you for inviting me to launch the CaseTrust Accreditation Scheme for e-Businesses.

2. E-Commerce is experiencing rapid growth. This was accelerated by the COVID-19 pandemic, which prompted a shift to online shopping. In 2022, Meta and Bain & Company projected that e-commerce sales in Singapore would hit $19.6 billion by 2027. Drawn by its market potential, many entrepreneurs are taking their businesses online to grow, diversify and reach new customers.

3. However, the surge in e-commerce also means that online shoppers may encounter unfair business practices more frequently. Between the first half of 2022 and 2023, the Consumers Association of Singapore (CASE) saw a 54% increase in customer complaints involving online purchases. Common complaints included problems with delivery, defective or non-conforming goods, and misleading and false claims. To bolster their brand equity, e-businesses should proactively address these concerns and build consumer trust.

Building upon the foundation for e-commerce growth

4. Our E-commerce industry has a solid foundation for promoting common standards, consumer trust, and transaction safety to build upon for further growth. In 2020, EnterpriseSG and the Singapore Standards Council jointly launched the first national standard on e-commerce transactions, Technical Reference 76 (TR76).  Two years later, the Inter-Ministry Committee on Scams (IMCS) updated the TR76 to offer e-retailers and e-commerce marketplaces additional guidelines to safeguard e-commerce transactions from scams further. It also introduced the e-Commerce Marketplace Transaction Safety Ratings in 2022 to inform consumers about the extent to which each major e-commerce marketplace has implemented anti-scam measures.

5. In addition, the E-commerce sector enjoys the support of organisations such as Nanyang Polytechnic’s Singapore Institute of Retail Studies (SIRS), which offered e-retailers training on TR76 when the standard was launched. Since 2006, SIRS has supported the retail sector and worked closely with the industry to provide consulting, executive programmes, solutions development, continuing education and training, and placement services for retail businesses.

Promoting Consumer Trust

6. Besides having common standards, our e-commerce sector is guided by a robust framework that promotes and safeguards consumer trust.  The Standard Dispute Management Framework for e-marketplaces launched by CASE in 2021 provided a guide to e-marketplaces on resolving consumer disputes efficiently and equitably. As a result, Lazada and Shopee signed MOUs (Memorandums of Understanding) with CASE to adopt best practices. These include verifying the identity of merchants, upholding clear and open communication with consumers, resolving disputes promptly and providing transparent exchange and refund policies. Under the framework, Lazada customers also benefit from measures such as having their complaints processed within seven days.

7. Separately, the set of Guidelines on Price Transparency launched in 2020 by the CCS (Competition and Consumer Commission of Singapore) further protects buyers by warning sellers against misleading advertising practices that could break the law.

CASE: Expanding the CaseTrust Accreditation Scheme to e-commerce

8. Today’s launch of the new CaseTrust Accreditation Scheme for e-Businesses will further enhance consumer protection by expanding safeguards to online purchases. This scheme will recognise e-businesses that adopt fair trading and pro-consumer practices such as transparent pricing, customer-friendly policies for handling disputes or complaints and enhanced payment security.

9. The new scheme is a timely one that supports the growth of e-commerce and offers greater confidence to online shoppers. With the introduction of CaseTrust for e-businesses, consumers can enjoy better peace of mind when buying from accredited e-retailers.

10. In addition, the CaseTrust Accreditation Scheme for e-Businesses, which complements the Dispute Management Framework for e-Marketplaces, will now extend consumer protection to cover the full e-retail experience. Regardless of where consumers choose to shop – whether at digital malls such as Lazada, or at accredited e-businesses’ individual websites - they can buy with peace of mind, knowing that they are covered by the same CaseTrust standards of fair trading.

11. I commend CASE for its commitment to addressing the evolving needs of consumers and businesses. In the last 24 years, the CaseTrust Accreditation Scheme by CASE has become the trusted national benchmark for consumer confidence. To this end, CASE has collaborated with industry stakeholders to promote fair trading and consumers’ interests to benefit sellers and buyers. More consumers now recognise the CaseTrust mark. Today, there are more than 1,200 CaseTrust-accredited outlets across the beauty, direct selling, jewellery, motoring, retail and renovation industries. In the recent year, over 44,000 consumers were insured under CASE’s pre-payment protection schemes.

12. I am confident that the new accreditation scheme will encourage fair trading and pro-consumer practices in our e-commerce sector, raising consumer confidence and boosting sales in the long run.

Call to e-Businesses - Apply for Accreditation

13. I am heartened that Lazada, an e-marketplace leader, is committed to uplifting consumer protection in the e-commerce industry. As an early adopter of the Standard Dispute Management Framework for e-Marketplaces, Lazada will actively encourage its retailers to apply for CaseTrust accreditation. It will also enhance the visibility of CaseTrust-accredited merchants on the Lazada platform. I understand e-retailers like Zalora are keen to apply for the CaseTrust mark.

14. Businesses can attend the one-day workshop held by SIRS to learn about the accreditation scheme and its assessment criteria. SIRS also has an extensive one-on-one mentorship programme to help e-businesses optimise their consumer experience. This can help e-businesses enhance their online sales platforms and move closer to receiving the CaseTrust mark.

15. I encourage all e-businesses to apply for CaseTrust accreditation. This hallmark of trust from CASE will strengthen your brand and attract consumers who are increasingly discerning and favourable towards retailers with fair practices and pro-consumer policies.

Conclusion

16. My heartiest congratulations to CASE on the launch of the CaseTrust Accreditation Scheme for e-Businesses. I look forward to the Scheme boosting consumers' trust and sales for our e-commerce sector.

17. Thank you.