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What Consumer Protection laws are there in Singapore?The Consumer Protection (Fair Trading) Act or CPFTA provides the legal rules that allow consumers aggrieved by unfair retail practices to have recourse to a Civil Claim in the Courts or the Small Claims Tribunals (dependent on their jurisdictional limits). The purpose of the CPFTA is to eliminate unethical, unfair and improper businesses conduct by giving consumers protection in 2 main types of situations:
In each of these scenarios, the CPFTA entitles a consumer to ask for compensation or corrective measure from a Court. For unfair practices, a consumer can make a claim for damages so long as the amount doesn’t exceed $30,000. The consumer may also choose to pursue a claim concurrently to the CPFTA and abandon the claim for any amount that is in excess of the specified limit. An alternative solution available under the CPFTA is an injunction or declaration from a Court that can prohibit the supplier from continuing to carry out the unfair practice. For the supply of goods that don’t conform to the contract, the supplier is given a reasonable time to schedule or replace the goods. If the supplier fails to comply the consumer can ask for assistance from the Court for specific performance of the supplier’s responsibilities. Specific performance is a discretionary remedy that allows the Court to compel them to carry out a specific course of action. Failure to follow this order will amount to contempt of Court. As an alternative to fixing or replacing the goods, the supplier may reduce the amount to be paid for the goods or rescind the contract for the sale of the goods. If you have a dispute with a retailer over consumer goods and services that you have not been able to resolve, you can approach CASE for advice and assistance. CASE handles consumer-to-business disputes. In mediation, you’ll have full opportunity to put forward your side of the story. You must, therefore, provide full details of the unfair practice in chronological order. You may find it useful to write down the details and practice discussing them with a friend before the mediation. So there you have it, some basic information on the Consumer Protection (Fair Trading) Act and how it works. If you need legal advice or help, call or WhatsApp us at +65 8886 0278 and we’ll contact you to discuss your case. Jonathan Wong Jonathan is the Founder and Managing Director of Tembusu Law. He is also the founder of LawGuide Singapore, a prominent legaltech startup which successfully created and launched Singapore’s first legal chatbot in 2017. The Australian Consumer Law (ACL) requires businesses to provide consumer guarantees for most consumer goods and services they sell. Consumer guarantees are a set of rules that apply to goods and services purchased by consumers under the ACL. These rules set out the circumstances under which a business is required to provide a consumer with a remedy. The consumer guarantees automatically apply regardless of any voluntary or extended warranty given by a seller or manufacturer of goods and services, or if such a warranty has expired. Who is a consumer?A person – or a business – will be considered a consumer if:
Who must comply with the consumer guarantees?Businesses that provide goods – by selling, leasing or hiring – or services to consumers in Australia must comply with the consumer guarantees. Manufacturers and importers must also comply with certain consumer guarantees. Businesses that sell goods guarantee that those goods:
Manufacturers and importers guarantee that their goods:
What happens if these guarantees are not met?If you sell a customer a product that fails to meet one or more of the consumer guarantees, they are entitled to a remedy – either a repair, replacement or refund and compensation for any consequential loss – depending on the circumstances. Generally, if the problem is minor, the seller can choose whether to remedy the problem with a replacement, repair or refund. If you choose to repair and it takes too long, the consumer can get someone else to fix the problem and ask you to pay reasonable costs, or reject the good and get a full refund or replacement. If the problem is major or cannot be fixed, the consumer can choose to:
A purchased item has a major problem when it:
Gift recipients are entitled to the same rights as consumers who bought the goods directly. The seller cannot refuse to provide a remedy if the product is not returned in its original packaging. The seller also must not refuse to deal with a customer about the returned good and tell them to deal with the manufacturer instead. Approaching the manufacturer directlyConsumers are entitled to approach manufacturers directly for a remedy. Consumers may take action against manufacturers to recover costs, which include an amount for reduction in the product’s value and in some cases compensation for damages or loss. Businesses that supply services guarantee that those services will be:
A contract or agreement for the supply of services usually states when the services will be provided and the date they will be completed. If not, the supplier guarantees to supply the service within a reasonable time. What is ‘reasonable’ will depend on the nature of the service and other relevant factors such as the weather, for example, if services are being performed in outdoor areas. What happens if these guarantees are not met?If you sell a customer a service that fails to meet one or more of the consumer guarantees, he/she is entitled to a remedy – for example, a refund, a further service to rectify the problem and in some circumstances compensation for consequential loss. The service provider must then provide the appropriate remedy. If the problem is minor and can be fixed, you can choose how to fix the problem. The consumer cannot cancel and demand a refund immediately. You must have an opportunity to fix the problem. If the repairs take too long, the consumer can get someone else to fix the problem and ask you to pay reasonable costs, or cancel the service and get a refund. If the problem is major or cannot be fixed, the consumer can choose to:
A purchased service has a major problem when it:
The consumer guarantees do not apply to goods or services costing more than $100,000 that are normally used for business purposes (for example, installing industrial air conditioning to a factory premises). Additional exceptions apply in some circumstances. These include:
Different laws apply to:
For further information and types of exceptions, please refer to the Act. Consumer obligationsConsumers’ rights are not limitless and the consumer guarantees do not require you to provide a remedy unless one of the guarantees has not been met. For example, you may not be required to provide a remedy if a consumer:
Your customers can seek compensation for damages and losses they have suffered due to a problem with a product or service (in addition to any other remedy provided) if you could have reasonably foreseen the problem. In other words, customers can also recover losses that would probably result from your failure to meet a guarantee. Damages include the cost caused to the consumer as a result of the problem with the product or service. This is usually financial, such as costs of repairing damaged carpets as a result of a faulty leaking washing machine, inspection and transportation. It can also include lost time or productivity. You do not have to pay for damages or losses that:
Some goods may fail to meet one or more of the consumer guarantees due to a manufacturing defect or issue that would otherwise be the manufacturers fault. The consumer can ask the seller to provide a remedy, and the seller is required by law to oblige. In this situation the manufacturer must reimburse the seller. The reimbursement amount can include any compensation paid to the consumer for reasonably foreseeable consequential losses. A supplier has three years to ask the manufacturer for reimbursement, from the earliest of the following dates:
Signs that state ‘No refunds’ are unlawful. The following signs are also unlawful:
However, signs that state ‘No refunds will be given if you have simply changed your mind’ are acceptable. If a customer complains to you about a purchased good and demands a remedy, your business is legally obliged to provide the appropriate remedy under the consumer guarantees provisions of the ACL. If you do not comply, the customer can:
Consumer guarantees – a guide for businesses and legal practitioners Consumer guarantees – training videos for business Consumer vulnerability - A business guide to the Australian Consumer Law Australian Consumer Law Refunds and remedies - Point-of-sale sign What are the ways to protect consumer?Following are some ways and means of consumer protection followed in India:. Self Regulations by Business: Large business houses have realised that they can prosper and grow for a long period of time only by giving due importance to consumers. ... . Business Associations: ... . Consumer Awareness: ... . Consumer Organisations: ... . Government:. What are consumer rights in Singapore?There are multiple rights that consumers have in Singapore, namely: Right for repair, replacement or refund of defective products. Right to cancel direct sales contracts and other regulated contracts. Right to sue for unfair practices.
What is consumer Fair Trading Act?AA. A. A. This Act provides the legislative framework to allow consumers aggrieved by unfair practices to have recourse to civil remedies before the courts.
How many unfair practices are there?What constitutes an unfair practice under the Act? to do any of the 20 unfair practices listed in the Second Schedule of the Act.
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