Data on Disputes Relating to Interior Design and Renovation Companies
Ministry of Trade and IndustrySpeakers
Summary
This question concerns whether the Ministry of Trade and Industry would mandate minimum qualifications for renovation company directors and seeks data on prepayment losses and disputes reported to the Consumers Association of Singapore (CASE). Minister for Trade and Industry Gan Kim Yong replied that CASE received about 120 complaints annually regarding prepayment losses from 2017 to 2023, with consumers recovering monies in half of the negotiated cases. He noted that while the Competition and Consumer Commission of Singapore (CCCS) investigates unfair practices, no renovation firms have been referred to them by CASE thus far. Minister for Trade and Industry Gan Kim Yong clarified that the Government does not mandate minimum qualifications for firm personnel, preferring instead to promote CaseTrust accreditation for consumer protection. He added that CCCS issued a fair trading guide in 2022 to improve industry standards, observing a 19% decrease in renovation-related complaints in 2023.
Transcript
69 Ms Carrie Tan asked the Minister for Trade and Industry whether the Ministry will consider mandating that companies registering as renovation or interior design companies have at least one director with sectoral qualifications or minimum years of relevant experience within the industry.
70 Ms Carrie Tan asked the Minister for Trade and Industry since changes to the Consumer Protection (Fair Trading) Act took effect in end-2016 (a) what is the annual breakdown of prepayment losses arising from (i) uncompleted home renovation projects and (ii) disputes involving renovation and interior design companies that have been reported to the Consumers Association of Singapore (CASE); (b) of these cases, how many were (i) monies successfully recovered from errant traders and (ii) raised to SPRING Singapore for further investigations; and (c) how many companies have had enforcement action taken against them.
71 Ms Carrie Tan asked the Minister for Trade and Industry (a) with regard to the renovation disputes that are reported to the Consumers Association of Singapore (CASE), what is the breakdown in proportion of (i) fraud cases and (ii) contractual disagreements; (b) how many are raised by renovation firms against customers; and (c) how is SPRING Singapore equipped to have the necessary technical expertise on renovation matters to effectively investigate and ensure fair assessment on dispute cases that are raised by CASE for further investigations under the Consumer Protection (Fair Trading) Act.
Mr Gan Kim Yong: From 2017 to 2023, the Consumers Association of Singapore (CASE) received about 120 consumer complaints per year regarding prepayment losses related to incomplete renovation works. The average value of the renovation contracts reported in these complaints was around $7,400. CASE assisted consumers in recovering their monies from renovation firms in about half of the negotiated cases. Some consumers may have recovered their losses through other avenues, such as the Small Claims Tribunal.
In 2018, the Competition and Consumer Commission of Singapore (CCCS) took over the role previously held by the former SPRING Singapore as the Government agency empowered under the Consumer Protection (Fair Trading) Act to investigate feedback on unfair practices and take action against errant businesses where warranted. Thus far, CASE has not referred any renovation firm to CCCS for investigation.
The Government does not mandate minimum qualifications or experience levels for key personnel in renovation and interior design companies. Consumers are encouraged to engage CaseTrust-accredited renovation contractors committed to fair business practices, such as offering prepayment protection and adopting the CaseTrust Standard Renovation Contract to ensure price transparency and accountability in renovation projects. To improve industry practices and guide renovation firms to avoid unfair practices, CCCS published a Guide on Fair Trading Practices for the Renovation Industry in 2022.
We observed a 19% drop in the total complaints received by CASE involving renovation contractors in 2023. We will continue to monitor the number of complaints closely and work with CASE and the renovation industry to promote good business practices.