Govt to study option of agency to investigate unfair trading practices, errant retailers
A man walks past a shop with its shutters closed in Sim Lim Square. Unethical business tactics like those of some traders at Sim Lim Square have caused consumers to be more cautious, CASE said. TODAY file photo
SINGAPORE – The Government will study the option of appointing an agency to undertake investigation and enforcement functions in cases of unfair trading practices, as part of its review to bolster existing legislation to speed up action against unfair trading practices and errant retailers, Minister of State for Trade and Industry Teo Ser Luck said in Parliament today (Jan 19).
“The Government will review the legislation to strengthen the provisions so that quicker action can be taken to deter unfair trading practices, and prevent errant retailers from side-stepping restrictions under the Consumer Protection (Fair Trading) Act by forming new companies.
“We will study the option of appointing an agency to undertake the investigation and enforcement functions,” said Mr Teo.
He was responding to questions by several Members of Parliament, including Mr Lim Biow Chuan and Ms Denise Phua, on the steps the Government is taking following the high-profile cases involving errant retailers in Sim Lim Square last year.
Currently, the Consumers Association of Singapore (CASE) handles the majority of consumer complaints, which are resolved through discussion or mediation between the parties, Mr Teo said. Alternatively, consumers would approach the Small Claims Tribunals (SCT) to seek monetary compensation.
Mr Teo noted that, over the past three years, CASE has received about 2,000 complaints against retailers from Sim Lim Square, Lucky Plaza and People’s Park Centre, of which 1,400 cases have been mediated.
“The Government will work with CASE and SCT to streamline the existing claims process so that quicker action is taken to help consumers obtain compensation. We will also review the relevant legislation to strengthen the enforceability of rulings by SCT,” he said.
The review is expected to be completed before the middle of this year.
