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Tighter regulations needed to protect online buyers: CASE

SINGAPORE — As the number of complaints over online purchases grows, the Consumers Association of Singapore (CASE) is asking the authorities to strengthen the existing legal framework to better protect online shoppers, said CASE executive director Seah Seng Choon.

CASE executive director Seah Seng Choon feels that laws are needed to ensure accountability from e-retailers. Photo: Jason Quah

CASE executive director Seah Seng Choon feels that laws are needed to ensure accountability from e-retailers. Photo: Jason Quah

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SINGAPORE — As the number of complaints over online purchases grows, the Consumers Association of Singapore (CASE) is asking the authorities to strengthen the existing legal framework to better protect online shoppers, said CASE executive director Seah Seng Choon.

Over the past three years, the number of cases handled by CASE involving online transactions across industries has crept up from 107 in 2012, to 137 cases in 2013, to 146 last year. These involved mainly fashion wear, electronic gadgets and IT-related items. 

For instance, there was a consumer who bought several products ranging from mobile phone batteries to swimwear and a bag, amounting  to close to S$80, but the goods were not delivered. The merchant also did not respond to repeated calls and emails, and the issue was resolved only after CASE stepped in.

Mr Seah was speaking to TODAY in an interview on the role of CASE, going forward, in light of proposed changes to the Consumer Practices (Fair Trading) Act (CPFTA), which include setting up an agency to provide investigative and enforcement powers against recalcitrant traders.

Stressing CASE’s role of flagging issues of concern, and public education on consumer rights, Mr Seah felt that laws were needed to ensure transparency and accountability from e-retailers. 

For instance, this could mean requiring e-retailers to provide their company registration number, the details of product such as their places of origin, and having a secured payment gateway. Other areas of concern include the sudden closure of online sites and timely delivery of goods.

“Online purchasing is fraught with a lot of uncertainty … (online retailers) might not give you the full information, you just go and try your luck (and) hopefully you get the product at the end of the day,” he said, adding that he has already floated these concerns to the Ministry of Trade and Industry (MTI).

Currently, consumers can try to seek redress over their online transactions through the Computer Misuse and Cybersecurity Act, Lemon Law and the CPFTA.

But Mr Seng pointed out that it gets tricky when, for instance, 10 buyers come together for an “online spree” with the intention of getting a bulk discount, but the seller disappears after collecting the monies.

Without the need to provide contact details online, the buyers will have no means of locating the seller, he added.

In response to queries, the MTI said it is reviewing CASE’s proposal, but pointed out that existing consumer protection laws also cover online purchases.

Commenting on the proposed changes to the CPFTA, Mr Seah said this would address current gaps, noting that CASE has been limited in investigative power. 

For example, it can act only if the buyer produces evidence. The proposed agency could help to close this loophole by demanding documents from sellers and taking enforcement against errant traders, he suggested. 

This also frees up CASE to focus on its other responsibilities, such as public education and mediation. 

CASE will also provide feedback to the authorities on regulatory changes it thinks are needed, based on complaints it receives, he said.

The two groups of consumers that CASE is keeping a closer eye on are “first-time” consumers — such as those fresh out of school and having spending power for the first time — and senior citizens, who are often the targets of direct sellers and are less aware of consumer rights.

With MTI announcing that it will be providing more resources for CASE to expand its public education programmes, Mr Seng said he is considering games for the public to learn about their rights in a more
interactive way. 

Other outreach efforts include exhibitions held at schools, while also continuing with traditional TV advertisements. He said: “With more changes to the law and new additions to legislations, we have to educate the consumers (on their rights).”

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