SPRING Singapore to initiate legal action against car retailer SG Vehicles

SPRING Singapore to initiate legal action against car retailer SG Vehicles

It is the first time SPRING is taking legal action under the Consumer Protection (Fair Trading) Act (CPFTA) which the agency administers.

SINGAPORE: SPRING Singapore said it will commence legal proceedings against automotive retailer SG Vehicles group of companies for engaging in unfair practices.

It is the first time SPRING is taking legal action under the Consumer Protection (Fair Trading) Act (CPFTA) which the agency administers, SPRING said in its press release on Monday (Dec 18).

The agency said it "will apply to the High Court on Dec 19, 2017 for a declaration and/or injunction to be granted" against the company.

"SG Vehicles will have to cease the unfair practices and comply with accompanying orders if the declaration and/or injunction is granted," the statement added.

The decision comes following investigations into complaints against SG Vehicles to the Consumer Association of Singapore (CASE). The complaints were related to representations of the terms and conditions of the sale agreement which could have potentially misled the complainants, SPRING said.

SG Vehicles was placed under the CASE Company Alert list in December 2015 following complaints from consumers, SPRING said, adding that between 2015 and 2017 the consumer watchdog "sought to resolve these complaints through negotiation and mediation."

"However, the number of complaints lodged against the company persisted despite CASE’s intervention, and a second alert was issued by CASE in June 2017. In July 2017, CASE invited SG Vehicles to sign a Voluntary Compliance Agreement to stop engaging in unfair practices, but the company did not sign it. 

"The matter was then referred by CASE to SPRING for further action. Following further investigations, SPRING decided to commence legal proceedings," SPRING said in the statement.

SPRING said SG Vehicles, which is located at Bukit Merah Central, must continue to honour sales agreements made with their customers and if it fails to do so, customers can contact CASE for assistance.

Source: CNA/mn

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