Speech by Parl Sec Low Yen Ling at the Second Reading Speech for the Consumer Protection (Fair Trading) (Amendment) Bill 2016

1.         Deputy Speaker, I rise in support of the Bill.

2.         The retail industry in Singapore is large and highly variegated.  It comprises more than 16,000 firms, from micro-enterprises and SMEs to international fashion houses and large departmental stores, offering consumers access to a wide range of goods and services.  This diversity enhances the attractiveness of Singapore, to locals and visitors alike, as a place to live, work and play. 

3.         Given its impact on our economy and reputation, it is essential that our retail industry engages in sound business practices.  An effective and responsive consumer protection framework helps to provide this check-and-balance.  I fully support the amendments to the CPFTA tabled today. They are timely changes to strengthen our consumer protection framework, by increasing the measures which may be taken against the few egregious players to maintain a high level of trust in our retail sector.

4.         The Minister of State for Trade and Industry has explained that it is important for consumers to know their rights and be alert to what unfair trading practices are, to be in a good position to make sound purchasing decisions.  Indeed, this principle of ‘caveat emptor’, or ‘let the buyer beware’, must continue as a key plank of our consumer protection framework.  To be able to make informed purchasing decisions, consumers need to know their rights as consumers, and know what to look out for, including questions to ask the retailer before making a purchase. 

5.         One of my residents, Mr M.Y Choo, 65 years old, is an avid photographer who recently bought a new camera at $3,000+. He checked out different retailers to compare the prices of the model he was interested in, and also noted the warranty terms and period before finally deciding on his purchase. This practice has resulted in him being a happier consumer, who is more satisfied with his current buy than his previous camera purchases.

6.         For Mr Choo, being more aware as a consumer paid off. I am therefore strongly of the view that even as we strengthen the CPFTA, our efforts on the consumer education front must also continue. When consumers are knowledgeable, alert and aware, they can make better and informed purchasing decisions. To this end, CASE plays a key role in championing consumer education and raising consumer awareness. MTI has worked with CASE on broad-based initiatives and targeted efforts to reach more vulnerable consumer segments like the elderly based on their specific concerns. With effect from this month, CASE will work with the five CDCs (Community Development Councils) over the next three years to roll out consumer education talks and reach out to heartlanders. The talks will teach consumers what they should look out for when making purchases, especially for products and services that have attracted a high volume of complaints, like the consumers should read and understand the terms and conditions of the deal before entering into a transaction. I urge CASE to explore new channels to educate consumers and build consumer awareness, especially in areas where we are seeing more issues faced by consumers.

7.         There are signposts to guide consumers in their purchases. For example, accreditation schemes for businesses like CaseTrust ensure fair trading practices and greater protection for consumers. We encourage more businesses to take part in these schemes as it not only demonstrates their fair trading practicies, it sets them apart from their competitors. The voluntary CaseTrust accreditation scheme requires participating businesses to have good service practices and for certain schemes involving prepayment protection. Currently, over 800 businesses are CaseTrust accredited. Beyond that, businesses may go further by volunteering to provide prepayment protection if they collect advance payments from consumers.  They may do so by purchasing business insurance which is already available for the spa wellness, fitness and renovation sectors. We will continue to encourage consumers to patronise accredited businesses that provide protection for prepayments. By doing so, consumers also send a signal that such practices are welcomed, and more businesses will come on-board to be accredited.  

8.         By enhancing the Consumer Protection (Fair Trading) Act, we are strengthening the measures that may be taken against errant retailers to give greater protection to consumers.  Now even as such steps are in place, we need the cooperation of the consumer – to be armed with the right information, to stay alert against errant sellers or service providers, and to be aware of their rights, so as to make informed purchasing decisions. As the saying goes, “prevention is better than cure”. So an informed, alert and aware consumer is the best defence.

9.         Deputy Speaker, please allow me to say a few words in Mandarin.

10.      副议长、各位国会同僚，我们大家都了解到，“经商之本，在于诚信”，有诚有信，生意才能够做得长久。在现今这个信息广为传播的时代，一小部分的商家，为贪图一时的利益，欺骗消费者，不但会造成消费者的损失，也会危害到整体零售和服务行业的信誉。保护消费者公平交易法令，就是要向这些害群之马，发出强烈的信息：不要欺骗消费者，不要危害零售服务行业的信誉。

11.         正所谓“害人终害己”，如果因为小部分的黑店，而影响到新加坡作为购物天堂的美誉，后果将不堪设想！保护消费者公平交易法令，除了维护消费者的利益，也通过制裁无良商家，维护整体零售服务业的信誉，这对我们零售及服务业领域的发展，是极其重要、极其有利的。

12.         提防不良商家，人人有责，我们能够从消费者，业界和政府三方面着手。首先，消费者应该提高警惕，不要轻易相信听起来不可思议或难以置信的促销，避免落入糖衣陷阱。第二，业界应该致力于培训，或设立专业认证机制，提高零售业者的服务意识和水平。第三，在政府方面，我们通过立法，包括这项“保护消费者公平交易法令”，来进一步确保提供公平的竞争平台，让所有的商家都有机会公平竞争，让所有的消费者都能够货真价实的买到他们所需要的服务，所喜爱的商品。

13.         维护诚信，人人有责。我希望所有的商家、业界领袖和消费者都认真看待这项“保护消费者公平交易法令”和法令背后所代表的意义和精神。我们必须继续秉持最高的标准，让新加坡继续成为全世界休闲、购物、工作、旅游和寻求发展的好地方。

14.         谢谢！