Complaints of Unfair and Pressure Sales Tactics and Recourse Available to Aggrieved Consumers
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Mr Liang Eng Hwa's inquiry into the number of complaints regarding unfair sales tactics, consumer recourse processes, and the number of businesses penalized recently. Minister Gan Kim Yong stated that the Consumers Association of Singapore (CASE) received 1,216 complaints over five years, although the Police do not track such civil cases. Under the Consumer Protection (Fair Trading) Act, consumers can seek redress through negotiation, CASE mediation, or the Small Claims Tribunal if they encounter undue pressure from suppliers. In egregious situations, CASE refers suppliers to the Competition and Consumer Commission of Singapore (CCCS), which investigated five cases of pressure sales tactics in the last five years. These errant businesses subsequently ceased their unfair practices and entered into Voluntary Compliance Agreements with CASE or provided formal undertakings to be monitored by the CCCS.
Transcript
7 Mr Liang Eng Hwa asked the Minister for Trade and Industry (a) what is the number of complaints that Government agencies, including the Police and the Consumers Association of Singapore, received on unfair or pressure sales tactics in each of the last five years; (b) what are the remedies and processes involved for the aggrieved consumers to seek recourse; and (c) how many errant retailers or businesses have been taken to task in the last five years.
Mr Gan Kim Yong: The Consumers Association of Singapore (CASE) received a total of 1,216 complaints in the last five years pertaining to pressure sales tactics (see Table below for breakdown). As for the Police, they do not track consumer complaints which are civil in nature.
Under the Consumer Protection (Fair Trading) Act (CPFTA), it is an unfair practice for suppliers to take advantage of a consumer by exerting undue pressure or undue influence on the consumer to enter a transaction. Consumers who encounter such unfair practices and need assistance in seeking redress may approach CASE. CASE can represent a consumer in corresponding with an errant supplier to reach a settlement, or act as a mediator between a consumer and an errant supplier. Should negotiation or mediation fail, consumers have the option to file a claim with the Small Claims Tribunal or seek other forms of legal redress.
In egregious cases, CASE will refer errant suppliers to the Competition and Consumer Commission of Singapore (CCCS) for investigation under CPFTA. In the last five years, CCCS investigated five cases involving pressure sales tactics. These suppliers have ceased their unfair practices and either signed Voluntary Compliance Agreements with CASE or provided undertakings to CCCS.