Feb 14, 2012

Singapore - Consumers to have more rights from Sept



From September, consumers will have more rights and protection if they find themselves with a defective product.

A defective product can be returned to the retailer within six months and consumers will also have the right to demand a refund, replacement or seek redress in court.

This is one of the proposed amendments to the Consumer Protection (Fair Trading) Act and the Hire Purchase Act (HPA), which was raised in Parliament today.

This paves the way for the 'lemon law', which are laws protecting consumers against defective goods that fail to conform to contract, or meet satisfactory quality or performance standards at the time of purchase - colloquially known as 'lemons'.

The proposed amendments are expected to come into force in September and will shift the burden of proof to the seller, which is a fundamental change in the law and will apply to all durable goods.

Besides returning a defective product, consumers will also have the right to a partial or full refund if the good is not repaired or replaced within a reasonable time, or without significant inconvenience to the consumer.

If the retailer rejects this view, the consumer could take the matter to court.

The judge would then look to the retailer to refute the presumption of unsatisfactory quality with reasonable evidence.

The retailer might attempt this by, for example, analysing the good to show it was damaged by the consumer. For example, where leather shoes had not been cleaned, causing the leather to crack.

Used goods are also covered under the new law, but the law will take into account the age and price paid for the goods to ascertain whether or not a claim of defect is reasonable.

The amendment proposed today is based on a public consultation exercise conducted by the Ministry of Trade and Industry (MTI) between Dec 20, 2011 and Jan 31.

About 50 responses were received in total, from members of the public, small retailers, MNCs, CASE and the Hire Purchase, Finance and Leasing Association of Singapore.

In addition, MTI also conducted focus group sessions in the later part of last year with industry representatives such as retailers and motor traders.

AsiaOne



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