Mr Chua Kheng Wee Louis (Sengkang): Despite transformative changes in how consumers engage with businesses, the approach to safeguarding consumer rights in Singapore has not evolved, appearing to maintain a somewhat indifferent stance toward consumer protections.
We only need to look at the many high-profile and recent consumer incidents in Singapore – from the Sentosa Sky Lantern Festival, the abrupt closure of gym franchises, the chronic overbooking of cruises and flights, errant renovation contractors, “lemons” in the used car trade and the unsatisfactory customer service that has become synonymous with certain carsharing and food courier operators. These are just a few of the specific areas which are found wanting when it comes to protecting the interests of consumers.
CASE reported a 24% year-on-year increase in prepayment losses in 2022, with consumers reporting more than $645,000 in losses. In many of these cases, you should not need a consumer association to tell you that businesses cannot just sell subscriptions and then shut down, leaving consumers with no recourse, or that a refund with “platform credits” is not quite the same as cash payments in kind, or that if an airline overbooks and is unable to accommodate your trip, it is solely on them to provide an acceptable alternative to the customers’ satisfaction. Moreover, even though many used cars are sold by dealers on a consignment basis, unbeknownst to many consumers, such purchases do not fall under the “lemon law” – ironic, given the prevalence of lemons in the used car industry.
While the Government has undertaken some initiatives to address unfair trading practices, it falls short of the robust protection framework that a first-world economy like Singapore should have. We need to transform the prevailing mindset of caveat emptor or buyer beware into one where individuals can confidently stand against the might of big business and know that the customer is not always right, but at least we will always be treated fairly.
The Minister of State for Trade and Industry (Ms Low Yen Ling): Finally, with the TACs and the industry, we will improve business practices and strengthen consumer protection. The Consumer Protection (Fair Trading) Act, or CPFTA, already provides for civil remedies for unfair practices, such as deception and false claims. Thank you to Mr Melvin Yong, who is also the President of CASE, and Mr Louis Chua for their suggestions on enhancing consumer protection.
We appreciate the close partnership with CASE, and all the work that CASE has done to support consumers. For example, CASE’s Price Kaki app allows consumers to compare the prices of many different household items and cooked food and the unit pricing features makes it even easier to compare. MTI, the Competition and Consumer Commission of Singapore (CCCS) and the economic agencies will continue to work closely with CASE to protect consumer interests as consumer purchasing habits evolve.
Mr Chairman: We do not have much time left. So, for those who want to seek clarifications, and likewise, for the responses, please keep them short. Mr Louis Chua.
Mr Chua Kheng Wee Louis: Noted, Mr Chairman. So, just two clarifications. The first is for Minister of State Low. I mentioned lemons in my speech. So, in terms of the so-called loophole for the lemon law whereby used cars that are sold on consignment are actually not covered, does the Government intend to plug this loophole, given that it is likely the largest value item for a given household?
The second is more for Minister Dr Tan. I think the Minister mentioned the power plants that will be coming up will be hydrogen-ready. So, I just wanted to understand, in terms of the feedstock that they will be using when they are operational, is there a target percentage for them to be using hydrogen? And similar as to how we deal with LNG, does the Government intend to do a kind of centralised procurement of, say, ammonia or hydrogen feedstock for economies of scale?
Ms Low Yen Ling: Chairman, I promise to keep it short so that you can enjoy your peach oolong tea. I thank the Member Mr Louis Chua. I will just make two quick points. When the Member talked about lemon law, is he talking about owner selling to owner or business selling to owner? Can I clarify?
Mr Chua Kheng Wee Louis: Basically, the used car dealers, when they actually sell on behalf of the owner to somebody buying a secondhand car.
Ms Low Yen Ling: Okay, I want to thank the Member for the clarification. The used cars that are sold by car dealers on behalf of the owners, they are also known as consignment cars. The Member might be aware of that. They are really considered consumer-to-consumer (C2C) transactions between the owner and the buyer.
The lemon law only covers business-to-consumer (B2C) transactions and does not cover the C2C transactions. However, I want to assure the Member that car dealers who misrepresent a C2C transaction as a B2C transaction can be taken to task under our current Consumer Protection (Fair Trading) Act, or CPFTA, as an unfair trading practice. So, if the Member knows of any, please let us know and we will follow up. We also want to use this platform to really advise the consumers to take extra precaution when making such purchases.
Ministry of Trade and Industry
1 March 2024
https://sprs.parl.gov.sg/search/#/sprs3topic?reportid=budget-2361
Office of the Leader of the Opposition 