Competition (Amendment) Bill

Order for Second Reading read.

5.30 pm

The Senior Minister of State for Trade and Industry (Ms Low Yen Ling) (for the Deputy Prime Minister and the Minister of State for Trade and Industry): Mr Deputy Speaker, Sir, on behalf of the Deputy Prime Minister and Minister for Trade and Industry, I move, "That the Bill be now read a Second time."

Sir, the Competition (Amendment) Bill amends the Competition Act 2004 and the Enterprise Singapore Board Act 2018 to transfer the product safety and legal metrology functions from the Enterprise Singapore Board to the Competition and Consumer Commission of Singapore (CCCS). Related amendments will also be made to the Consumer Protection (Trade Descriptions and Safety Requirements) Act 1975 and the Weights and Measures Act 1975.

Since taking over the fair-trading function from then-SPRING Singapore in 2018, CCCS has deepened its expertise and established itself as one of the key pillars underpinning our consumer protection ecosystem today. It works closely with relevant Government agencies and the Consumers Association of Singapore to promote consumer education and awareness. CCCS also takes action against unfair practices under the Consumer Protection (Fair Trading) Act 2003 (or CPFTA). It plays an important role in safeguarding consumer interests, ensuring they can transact with businesses with peace of mind.

Product safety and the accurate measurement of products are vital in protecting consumer interests. Today, product safety and legal metrology functions are administered by Enterprise Singapore’s Consumer Product Safety Office (CPSO), and the Weights and Measures Office (WMO), respectively. This results in the consumer protection functions to reside across two agencies.

To ensure greater synergy in the administration and enforcement of consumer protection matters under a single agency, the Bill amendments seek to transfer the product safety and legal metrology functions from Enterprise Singapore to CCCS. Such a move would reinforce the mandate of CCCS’ to protect consumers by enhancing its oversight of consumer protection issues.

Sir, I will now explain the key features of the Bill.

The Bill will transfer the following functions from Enterprise Singapore to CCCS, namely:

One, promoting the supply of safe consumer goods among suppliers in Singapore and educating consumers on safety information of the goods they buy and legal metrology.

Two, preventing the supply of unsafe consumer goods in Singapore.

Three, the administration and enforcement of the Weights and Measures Act, including the regulation of weighing and measuring instruments used for trade, the provision of relevant information relating to quantity in the supply of goods, and enforcement actions against suppliers whose goods are short-weighted.

Four, representing Singapore internationally and advising Government agencies and consumer protection organisations on promoting and enforcing the supply of safe consumer goods in Singapore, including providing relevant safety information about consumer goods and legal metrology.

The Bill will also empower CCCS to designate or recognise persons who perform conformity assessment, testing or certification related to product safety of consumer goods, to regulate such persons, or to carry out the conformity assessment or testing itself. CCCS will also be empowered to administer and enforce certain regulations under Consumer Protection (Trade Descriptions and Safety Requirements) Act, including regulations relating to the supply of safe consumer goods. This further complements the existing enforcement functions against unfair practices under the CPFTA.

If passed, all assets, liabilities and records of the CPSO and WMO in Enterprise Singapore will be transferred to CCCS. Enterprise Singapore and CCCS will ensure smooth continuity of operations and provide support to the public and industry stakeholders. We will engage with all relevant stakeholders in the lead-up to the transfer.

Sir, this Bill will better position CCCS to address issues relating to unfair trading, product safety and legal metrology holistically, thereby strengthening CCCS’ ability to safeguard consumer interests. Sir, I beg to move.

Question proposed.

Mr Deputy Speaker: Mr Yip Hon Weng.

5.36 pm

Mr Yip Hon Weng (Yio Chu Kang): Mr Deputy Speaker, Sir, this Bill consolidates product safety and legal metrology functions under CCCS. This move will reshape the regulatory landscape for businesses and consumers alike. At the heart of this Bill lies a fundamental question: how do we strike the right balance between protecting consumers and ensuring that businesses, especially small ones, can continue to thrive?

Let us be clear: consumer protection is not just about making sure products are safe. It is about trust – trust that when you buy something, it works as promised; trust that businesses play fair; trust that when things go wrong, the system will act, quickly and decisively. I have several clarifications on the Bill.

[Mr Speaker in the Chair]

First, Mr Speaker, Sir, I have concerns about the impact of this Bill on small businesses and SMEs.

Regulations should not be a burden that crushes them under mountains of paperwork. We must not build a system so rigid that it punishes those who are simply trying to make an honest living. In time, CCCS will likely introduce new legislations. When the time comes, will there be Government assistance like transitional support for SMEs so that they are not caught off guard by new compliance requirements? How will CCCS ensure that regulations are practical and not just punitive? Does CCCS have the specialised expertise to regulate product safety effectively, given that its primary focus has always been competition law? And most importantly, will small businesses have a seat at the table when these new policies are shaped?

Because, Mr Speaker, Sir, this is not just about writing laws. It is about writing them in a way that the people who live with them every day can comprehend and follow. Consumer protection should not come at the cost of business survival. We must ensure that SMEs are guided, not simply penalised by additional regulations. This is especially pertinent as SMEs may operate on thin margins. The cost of compliance due to a few rotten apples may erode the profits that the honest SMEs may have.

Second, Mr Speaker, Sir, we need to ensure clarity in reporting for consumer safety. The everyday consumer – the busy parent, the elderly resident, the working adult – just wants to know one thing: if I buy something unsafe, where do I go for help?

Right now, some people report to Enterprise Singapore's CPSO, while others turn to CCCS for unfair trade practices. Moving forward, how will CCCS ensure that every consumer in Singapore knows exactly where to go when they need help? Will CCCS introduce a one-stop digital reporting platform to make it easier for consumers to flag unsafe products? How can we speed up product recalls? Can we adopt international best practices, such as real-time public alerts, for hazardous products? Will the products covered by CCCS be limited to non-consumables, or will there be overlaps with other Government agencies like the Health Sciences Authority (HSA)?

Third, Mr Speaker, Sir, regulations only work if they are enforced properly. Right now, CCCS is excellent at enforcing competition laws, but product safety regulation is an entirely different challenge. This is not just about watching out for monopolies. It is about testing, certifying, and recalling products that could harm people if they fail.

So, does CCCS have the budget and manpower to ensure strong enforcement? Will they work with third-party labs to verify product safety, or will they depend solely on businesses' self-declarations? How will CCCS coordinate with agencies like HSA and the National Environment Agency to prevent enforcement overlaps or if the matters overlap, ensure adequate cooperation without waste of resources? Will there be clear service standards, ensuring that unsafe product complaints are swiftly addressed? How many staff will move over from Enterprise Singapore to preserve the expertise? Will there be lay-offs?

A law is only as strong as its enforcement. And without the right expertise and resources, regulation risks becoming just another layer of red tape.

Lastly, Mr Speaker, Sir, we are moving into an era where digital goods and online marketplaces play an equally important role in consumer safety. Will CCCS have the power to regulate unsafe digital products, like smart home devices with cybersecurity risks? How will CCCS ensure that overseas e-commerce platforms comply with our product safety laws? Should we hold marketplace platforms accountable for hosting and selling unsafe products? And as artificial intelligence (AI)-generated content becomes more common, should we update our laws to include misleading AI-generated product claims?

The future of consumer protection is not just about what we buy in stores. It is about what we buy online, in apps, and in the cloud. Consumer protection in the 21st century must evolve beyond physical goods because today's unsafe products are just as often virtual as they are tangible.

In conclusion, Mr Speaker, Sir, at the heart of this Bill lies a promise – a promise that when people in Singapore buy something, they can trust that it is safe, that it is fair, and that if something goes wrong, help is just a step away.

But trust does not happen by itself. It is built. It is built through smart policies that protect consumers without crushing businesses. It is built through clear, simple rules that everyday people can understand and follow. And it is built through strong enforcement because a law that is not enforced is just words on a page.

This Bill takes us in the right direction. It streamlines enforcement, consolidates oversight and modernises how we regulate product safety. But we must get the details right because details matter. We must ensure that small businesses are supported, not drowned in red tape. We must ensure that every consumer knows exactly where to go when they need help. We must give CCCS the resources to do its job effectively, decisively and fairly. And we must prepare for the future because consumer protection is not just about physical goods anymore.

Mr Speaker, Sir, this is not just about regulations or the regulatory body. This is about confidence – confidence that when you buy a product, you are not gambling with your safety; confidence that businesses, big and small, are held to the same fair standard; confidence that when the Government sets a rule, it is enforced consistently, transparently and in the public interest. I support the Bill.

Mr Speaker: Mr Melvin Yong.

5.43 pm

Mr Melvin Yong Yik Chye (Radin Mas): Mr Speaker, I stand in support of the Bill, which seeks to transfer the product safety and legal metrology functions of the Enterprise Singapore to CCCS.

Sir, before I begin, I would like to first declare my interest as President of the Consumers Association of Singapore (CASE). CASE has and continues to work closely with CCCS on many issues relating to consumer protection. CASE therefore supports the proposed amendments as they will effectively consolidate the enforcement of consumer protection issues under CCCS.

As the Statutory Board responsible for enforcing the CPFTA, CCCS should have the mandate to enforce all issues related to unfair business practices across all sectors and industries. I therefore fully support the proposal for CCCS to take on the functions of ensuring product safety and to administer and enforce the Weights and Measures Act.

Over the years, CASE has been conducting its own product safety testing. With this amendment, I foresee that CASE will work even more closely with CCCS to identify issues related to product safety and misleading product claims, to better protect consumers. However, I have some questions and suggestions regarding this Bill.

Sir, in his speech at the launch of Enterprise Singapore in 2018, the then-Minister for Trade and Industry had highlighted the synergies of housing the development of standards and ensuring consumer product safety under Enterprise Singapore to build trust in Singapore's products and services.

Seven years later, I would like to ask if this was achieved and how does the Ministry intend to ensure that we do not lose this competitive advantage once the product safety and legal metrology functions are transferred to CCCS?

⁠How will stakeholders, such as the businesses, Conformity Assessment Bodies and registered suppliers of Controlled Goods, be impacted by this transfer of functions? Will there be any impact on CCCS and Enterprise Singapore officers as a result of the transfer? How does the Ministry intend to ensure a smooth transition for the affected officers?

Sir, the proposed transfer of functions to CCCS will also allow the agency to have a wider view of consumer protection, especially in its efforts to enforce against unfair trade practices under the CPFTA. This is particularly crucial as we move to embark on a unit pricing trial later this year, for common grocery items at selected outlets across our four major supermarkets.

As Members of this House would be aware, I have been calling for unit pricing since 2022, to tackle the phenomenon of shrinkflation. I therefore, welcome the trial, which will see supermarket operators display unit pricing for daily essentials, such as rice, meat, eggs, cooking oils, fruits and vegetables. I hope that the trial will provide useful insights that could lead to a nationwide implementation of unit pricing soon.

CASE has been studying issues related to unit pricing rollout in other key jurisdictions and I am keenly aware of some of the operational challenges faced overseas. Let me use cooking oil as an example.

Cooking oil is supplied in Singapore, both in terms of volume, meaning in litres; and also in weight, meaning in kilogrammes. One of the challenges of trying to unit price cooking oil will be if a retailer tries to convert all varieties of cooking oil into a standardised unit of measure. Different oils have different densities and the formula will differ across, for example, vegetable oil, sesame oil and avocado oil.

Such variables could lead to potential disputes. I would, therefore, like to suggest for CCCS to have powers under the Weights and Measures Act or under CPFTA, to make decisions on the exact conversion formula to be used, if a complaint is made to the agency regarding such matters.

Sir, as we expand the ambit of CCCS, it is important that we provide the agency with greater administrative powers to strengthen its ability to enforce against unfair trade practices.

In 2022, I spoke about the need to significantly shorten the time taken by CCCS to obtain an injunction order to stop errant businesses from perpetuating their unfair business practices. I urge the Government to reconsider my proposals for CCCS to have the ability to impose financial penalties on errant businesses without having to first obtain an injunction order from the Courts.

Additionally, even if CCCS successfully obtains an injunction order against an errant business, affected consumers are still required to separately file their cases at the Small Claims Tribunals to seek compensation. I hope that CCCS could be provided powers to issue Directions to businesses to compensate consumers, in cases where the agency has been awarded an injunction order by the Courts.

As the number of complaints handled by CASE continues to rise on a yearly basis, I urge the Government to provide CCCS with greater enforcement powers so that we can have a robust consumer protection regime.

Sir, in closing, the proposal to consolidate the enforcement of consumer protection issues under CCCS is a timely move. As we do so, we should have an eye on future consumer protection issues, including potential disputes pertaining to the roll-out of unit pricing and to provide CCCS with greater administrative and enforcement powers. Mr Speaker, I support the Bill.

Mr Speaker: Senior Minister of State.

5.49 pm

Ms Low Yen Ling: Mr Speaker, Sir, I thank the Members for their support and their constructive views on this Bill.

Sir, to recap, this Bill seeks to consolidate and streamline our regulatory landscape on consumer protection by transferring the product safety and legal metrology functions from Enterprise Singapore to CCCS. This will enhance CCCS' oversight of consumer protection issues and relevant regulations and strengthen its ability to engage both consumers and businesses on consumer protection matters.

I will, first, address the Members' specific questions about the transfer of functions, before addressing the broader points raised by both Members on our consumer protection regime.

President of CASE, Mr Melvin Yong and Mr Yip Hon Weng asked about CCCS' ability to administer the product safety and legal metrology regimes following the transfer. I would like to assure them and the House that the transfer process has been thoroughly planned and will be executed in a seamless manner to ensure that the functions continue to be delivered efficiently.

First, such enforcement functions are not new to CCCS. As I had shared earlier, during the start of the reading, CCCS has developed expertise as well as experience as a regulatory authority on unfair trading practices since 2018. Taking over these additional consumer protection functions on product safety and legal metrology is complementary and, in fact, synergistic to its existing functions.

Second, Enterprise Singapore's CPSO and WMO – both their officers as well as the budgets – will be wholly transferred from Enterprise Singapore to CCCS. All public officers in CPSO and WMO will move over accordingly to ensure continuity and enhance cross-sharing of expertise and there will be no impact to other officers in either Enterprise Singapore or CCCS.

As there will be no change to the capabilities and processes of CPSO and WMO, industry stakeholders as well as the members of the public can continue to access the services and the resources that are provided by CPSO as well as WMO during the transfer. More details on the new contact touchpoints following the transfer will certainly be provided to involve stakeholders soon.

These steps will set CCCS' ability to administer the product safety and legal metrology regimes from the get-go following the transfer.

I will now address the two Members' questions on our broader approach towards consumer protection.

As shared in my speech at the Ministry of Trade and Industry's Committee of Supply debate, in fact, just last month, the Government is certainly very mindful that for markets to function properly, consumers' trust in merchants and markets must be upheld. To do so, we must ensure that the regulatory system is fair and transparent to protect consumers while ensuring that the businesses can operate efficiently and are on the same level playing field. So, I fully agree with Mr Yip Hon Weng on the importance of maintaining this balance and I also agree with Mr Melvin Yong on the need to ensure that our regulations remain robust and effective. Let me elaborate.

First, we believe that regulations should be clear, transparent and fit-for-purpose without creating excessive burden. We also take a practical approach to consumer protection regulations. For example, our product safety regime adopts a risk-based approach where stricter regulations, including registration and testing, apply only to a defined list of higher-risk household appliances, such as refrigerators and cooking appliances.

For most of general consumer goods, for example, sports equipment and furniture, we then take a more self-regulatory approach, requiring the products to adhere to applicable international as well as local safety standards.

We also provide guidelines and resources to help businesses better understand and comply with our regulations. For example, CPSO and WMO send compliance advisories to our businesses, including SMEs, through the trade associations and also e-commerce platforms. Because when everyone understands the rules, it then creates a fairer marketplace where businesses can focus on what they do best and provide safe and high-quality products for our consumers.

Consumer education is also critical in ensuring consumers are aware of product characteristics and are able to make informed decisions when purchasing and also using the products. For example, CPSO communicates educational information and safety tips via its website to educate and also alert the consumers of products that are at higher risk of safety breaches.

Second, we proactively consult and also engage industry stakeholders, including SMEs, as well as other partners, when reviewing our regulations, to ensure that we incorporate the perspectives of the private sector and consider the latest developments. For instance, CPSO has set up an Advisory Committee comprising industry experts, academics and Government representatives to provide objective and independent advice on whether certain household appliances should be added to or should be removed from the list of controlled goods.

As both Mr Melvin Yong and Mr Yip Hon Weng have pointed out, consumer markets are constantly evolving and becoming more diverse, from digital goods and online marketplaces to groceries and daily essentials. The Government is certainly cognisant of these developments and is certainly working with the industry to closely monitoring all the developments. We have already started our work to actively consult the industries as part of a more fundamental review of our consumer protection regime.

Just last month, Deputy Prime Minister and the Minister for Trade and Industry, Mr Gan Kim Yong, announced that the Government has convened a Consumer Protection Review Panel to review key consumer concerns in Singapore, such as prepayment losses, online commerce and also to assess the need to strengthen our enforcement powers and ability to deal with emerging trends.

The Panel is co-chaired by Mr Melvin Yong and retired judicial commissioner Ms Foo Tuat Yien. The Panel will develop recommendations to drive consumer empowerment, raise industry standards and strengthen regulatory levers, where appropriate. The Panel held its kick-off meeting last week and we certainly look forward to receiving and studying the Panel's recommendations in time to come.

Sir, to conclude, our goal is to create a system that works for consumers, that works for businesses and that works for the economy. Where errant trading practices present real risks to consumers and honest businesses, we must make sure that appropriate safeguards and enforcement actions are in place without burdening the businesses and consumers.

Where regulations can be streamlined and requirements made efficient, we will certainly pursue these solutions. These key elements of balance, trust and partnership underpin the Government's approach to consumer protection and we will certainly continue to refine and strengthen our approach.

I would like to thank both Members once again for their support of this Bill. Mr Speaker, I seek to move.

5.58 pm

Mr Speaker: Are there any clarifications for Senior Minister of State Low Yen Ling? No.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Ms Low Yen Ling].

Bill considered in Committee; reported without amendment; read a Third time and passed.