NUSS bids farewell to Suntec City Guild House for the

Special report
victims of unfair trade practices,
making the dispute resolution process
clearer and less onerous. CASE and
the Singapore Tourism Board (STB)
are also appointed specified bodies
under the CPFTA that can commence
injunction proceedings against errant
businesses. They can also work with
the businesses to ask them to sign
a Voluntary Compliance Agreement
(VCA) which is an agreement that
is entered into voluntarily between
CASE or STB and the supplier. In the
VCA, the supplier will have to agree
not to engage in unfair practices.
“Consumers in Singapore have
accessible channels to seek redress in
the instances where they face unfair
practices or receive defective goods
from businesses. A readiness to allow
customers to seek redress also needs
to come from the businesses since
not all cases of customers seeking
redress need necessarily become legal
disputes.” mentioned Ms Bernadette
Wong, Manager of Special Projects
at Creative Eateries. “Without this
readiness, it may not be easy for
Singaporean customers to seek
simple forms of recourse when faced
with defective goods even with laws
protecting consumers in place.”
“The focus on consumer rights
in Singapore is usually spotlighted
on the right to redress. It is equally
important that the consumers have
the right to be heard and to be
informed. Consumer interests should
be explicitly represented in the making
and execution of government policies,
not only through establishments like
CASE but also through newer special
interest groups. Manufacturers also
need to be more responsible.” Said
Ms Janice Wong, Communications
Business Partner of an aerospace
company, “Consumers need to be
given correct facts and honest labelling
to make informed choices. Social
media has been a great boost to the
consumer movement ensuring that
the black sheep are identified and
minority voices are heard.”
lemon law
On 9 March 2012, Parliament passed
the ‘Lemon Law’ to strengthen
consumer protection in Singapore.
Under the law, consumers can report
a defective item within six months of
18 THE GRADUATE Oct-Dec 2012
“With the Lemon Law in place,
businesses will be encouraged to
adopt good business practices and
to sell quality goods. This in turn
will allow consumers to have greater
confidence in the retail industry.
The intent is to achieve a
win-win situation for all.”
mr lim Biow chuan
President of consumers Association of Singapore (cASe)
delivery. The onus lies on the retailer
to prove that the defect did not exist
at the time of delivery. Otherwise,
the consumer can request for repair
or a replacement, and if not possible,
ask for a reduction in price, or even
a refund. The Lemon Law which will
be implemented on 1 September 2012
applies to all goods, including consumables
and perishables but
not services.
Minister of State for Trade and
Industry, Mr Teo Ser Luck said in
Parliament that the amendments will
expand and make more explicit the
remedies available to both consumers
and businesses, as well as clarify
timelines and burden of proof.
Mr Teo said, “Introducing such a
law in Singapore will bring us in line
with international jurisdictions, and
assure both locals and tourists that
the products they buy are of good
quality, thus improving the image of
the retail industry in Singapore.”
“The Lemon Law provides
consumers with certainty of the types
of recourse available to them when
they purchase a defective product. In
the past, businesses could easily turn
down consumers’ requests for some
form of remedy when a product was
defective. With the Lemon Law in
place, businesses will be encouraged
to adopt good business practices and
to sell quality goods. This in turn
will allow consumers to have greater
confidence in the retail industry. The
intent is to achieve a win-win situation
for all,” said Mr Lim Biow Chuan.
“I am happy to learn about the
consumer movement. They serve to
give consumers like me confidence
and assure tourists that it is
absolutely safe to shop for anything
in Singapore. I hope the authorities
would publicise more about the
Lemon Law and teach the public how
to make use of the laws to protect
their consumer rights,” noted
Dr David Woon, Head of Operations,
EADS Innovation Works South Asia
(EADS Singapore Pte Ltd).
Ms Cherie Tseng, Executive
Director of Rie Ink Training and
Consulting feels that the Lemon Law
ensures safer and more confident
consumer retail transactions.
Whether it is enforceable in practice
is another matter. Much depends
on the interconnectedness of the
Singapore retail environment. There
are public forums, review aggregation
sites, social networks (Facebook and
Twitter) and active citizen journalism.
These count towards a more
transparent consumer environment.
A bad review on Twitter goes further
along, for instance, if there has been a
legal case of consumer-retailer dispute.
“It is a pity that the Lemon Law is
not enforceable on service. Singapore
has a significantly poor service level
compared to our SEA and Asian counterparts,”
said Ms Tseng. “It is healthy
that there has been greater awareness
and momentum on consumer rights. I
feel, in Singapore, more could be done
about service, at least, that is where
we are sorely lacking.”
the effects of lemon law
According to Mr Nicholas Aw, Partner
at Clifford Law LLP, the Lemon Law
mean a free warranty and better
protection for longer periods of
time. However this would create the
uncertainty relating to what extent
a defect is caused by wear-and-tear
and a manufacturing defect. The
pre-empt of purchasing goods may
become a long tedious process where
the retailer would be concerned
with bringing to the consumer’s