- POSTED: 28 Jan 2014 11:14
From April 1, consumers will enjoy greater protection when they purchase time share and long-term holiday product contracts.
SINGAPORE: From April 1, consumers will enjoy greater protection when they purchase time share and long-term holiday product contracts.
In a statement on Tuesday, the Ministry of Trade and Industry (MTI) said it has introduced amendments to the Consumer Protection (Fair Trading) (Cancellation of Contracts) Regulations, which will take effect on April 1.
The key changes include expanding the definition of 'regulated contract' to cover long-term holiday product contracts.
Thus, consumers will get the same protection for holiday clubs purchases as they do for time share products.
In another key change, no monetary transactions can be made during the cancellation period for time share, time share-related, and long-term holiday product contracts.
The purpose is to increase protection for consumers during the mandatory cancellation or cooling-off period, and reduce the likelihood of consumers being asked to enter into the contract on the spot.
It will also remove the risk of losing money and save the effort in recovering money paid when consumers decide to exercise their cancellation rights during the cooling-off period.
Sellers will also be required to provide consumers with key product information before the
contract is signed.
Sellers must also inform consumers of their right concerning contract cancellation before the mandatory cancellation or cooling-off period kicks in.