Frequently Asked Questions on the Consumer Protection (Fair Trading) Act
1.
What is the Consumer Protection (Fair Trading) Act (CPFTA)?
The Consumer Protection (Fair Trading) Act or CPFTA is designed to empower
consumers to seek civil redress against unfair trade practices in Singapore.
2.
What constitutes an unfair practice?
According to Section 4 of the CPFTA, it is an unfair practice for the supplier, in
relation to a consumer transaction:




3.
To do or say anything, or omit to do or say anything, if as a result, a consumer
might reasonably be deceived or misled;
To make a false claim;
To take advantage of a consumer if the supplier knows or ought reasonably to
know that the consumer:
o Is not in a position to protect his own interests. Eg, if the consumer is
mentally handicapped;
o Is not reasonably able to understand the character, nature, language or
effect of the transaction or any matter related to the transaction; or
To commit any of the unfair practices specified in the Second Schedule of the
CPFTA.
What are some examples of goods and services that are not covered
under the CPFTA?
Some examples include:
 Business-to-business dealings;
 Sale and purchase of property (only claims against real estate agents for
services rendered are covered); and
 Contracts of employment.
4.
What is the role of SPRING vis-à-vis CASE and STB under the CPFTA?
Under the CPFTA, the Consumers Association of Singapore (CASE) and the
Singapore Tourism Board (STB) remain the first points of contact for local
consumers and tourists respectively to handle complaints. They will assist in
obtaining redress, and in some cases, compensation through negotiation and/or
mediation. Errant retailers may enter into a Voluntary Compliance Agreement (VCA)
with CASE or STB, where they will agree in writing to stop the unfair practice, and in
some cases, compensate affected local consumers or tourists. Errant retailers who
persist in unfair trade practices will be referred to SPRING for investigation.
As the administering agency, SPRING will gather evidence against persistent errant
retailers, file timely injunction applications with the courts against persistent errant
retailers and enforce compliance with injunction orders issued by the courts.
SPRING is an existing statutory board under MTI whose mandate is to oversee the
growth of enterprises in Singapore. The role of the administering agency for the
CPFTA is an extension of its mandate which already includes aspects of consumer
protection such as product safety.
5.
What are some examples of cases that SPRING will undertake?
SPRING will take on cases of persistent errant retailers engaging in unfair trade
practices.
More examples of unfair trade practices were included in the Second Schedule of
the CPFTA. Some of these examples are when a supplier accepts payment from
consumers despite knowing it is unable to supply goods and services within a
specified and/or reasonable period or when a supplier asks for payment for the
supply of unsolicited goods and services.
6.
What are the penalties
investigations/enforcements?
for
non-cooperation
with
SPRING’s
If the supplier under injunction does not comply with the injunction order, SPRING
can take the supplier to court for contempt of court. This is a criminal offence which
could result in a fine and/or imprisonment.
A person who refuses to provide information, destroy/falsify documents, provide
false/misleading
info
and/or
obstruct
an
officer
conducting
the
investigation/enforcement could be guilty of an offence and liable on conviction to a
fine not exceeding $10,000 or imprisonment not exceeding one year or to both.
7.
Can consumers go directly to SPRING to obtain redress/compensation?
Can SPRING obtain redress/compensation for consumers?
CASE/STB remain the first points of contact for local consumers and tourists
respectively. They have readily available channels such as online feedback
platforms for local consumers and tourists to reach out for assistance. CASE/STB
will assist in obtaining redress/compensation by negotiating with the supplier and/or
facilitating mediation between parties. Local consumers/tourists can also approach
the Small Claims Tribunal (SCT) for claims of up to $10,000 (or $20,000 should both
parties agree). Alternatively, the CPFTA provides consumers with the right to sue
suppliers for engaging in unfair practices. This includes seeking monetary redress or
other remedies/relief.
SPRING’s role is to
a)
b)
c)
Gather evidence against persistent errant retailers;
File timely injunction applications with the courts against persistent errant
retailers; and
Enforce compliance with injunction orders issued by the courts.
8.
How do I lodge a complaint on an errant retailer for unfair trade
practice?
CASE/STB remain the first points of contact for local consumers and tourists
respectively. They have readily available channels such as online feedback
platforms for local consumers and tourists to reach out for assistance. CASE/STB
will assist in obtaining redress/compensation by negotiating with the supplier and/or
facilitating mediation between parties. Local consumers/tourists can also approach
the Small Claims Tribunal (SCT) for claims of up to $10,000 (or $20,000 should both
parties agree). Alternatively, the CPFTA provides consumers with the right to sue
suppliers for engaging in unfair practices. This includes seeking monetary redress or
other remedies/relief.
In reporting an errant retailer for unfair trade practice to CASE or STB, please ensure
that you have the following documents:
- Police report (if any);
- Receipts / Invoice / Delivery order
- Other supporting documents
Errant retailers who persist in unfair trade practices will be referred to SPRING for
investigation. As the administering agency, SPRING will gather evidence against
persistent errant retailers, file timely injunction applications with the courts against
persistent errant retailers and enforce compliance with injunction orders issued by
the courts.