SINGAPORE — The authorities could get more teeth to fight errant retailers, including measures to counter crooked merchants who ditch a bad reputation by setting up a new shop elsewhere, and setting up a first-ever dedicated agency to root out dodgy sales practices.

Following a review of the Consumer Protection (Fair Trading) Act (CPFTA), the Ministry of Trade and Industry (MTI) is considering making injunctions stick to an individual, instead of to a company, as is the case currently.

On top of that, an individual served with an injunction, which is a court order to restrain certain acts or conduct, will be required to publicise it prominently as a warning to consumers. He may have to display the order at the shopfront, or announce it via newspaper advertisements, or print it on the business’ invoices, for instance.

Revealing the proposed changes after visiting retailers at Rivervale Plaza in Sengkang today (July 20), Minister of State for Trade and Industry Teo Ser Luck said: “If the shop closes, and the owner goes elsewhere and sets up a shop, the owner still has the responsibility with whoever transacts with them ... the injunction order follows the individual.”

Details on when or how an injunction will be lifted are being worked out, he added. Separately, a dedicated agency within MTI could be set up and given powers, for the first time, to investigate consumer complaints of dodgy sales practices so that disputes are dealt with more speedily. Currently, complaints go to the Consumers Association of Singapore (CASE), which has no investigative or enforcement powers, making evidence-gathering a difficult or slow process.

A review of the CPFTA was sparked by the uproar caused by now-defunct Mobile Air’s allegedly unfair dealings with a Vietnamese tourist in November last year — criminal charges have been pressed against the owner Jover Chew and four of his former employees.

Speaking to the media today, Mr Teo said the committee that reviewed the law had looked at how other jurisdictions handled such problems. Hong Kong, for instance, has public agencies tasked with enforcing against unfair trade practices, while an injunction order can also be applied on an individual.

The new agency under MTI, if it is set up, will strengthen the investigation and enforcement process, said Mr Teo.

The plan is for CASE to remain the first point of contact for consumers to file complaints. It will then filter the more severe cases for investigations.

“When you take up such a case, it is actually very intrusive (to gather) evidence. After gathering enough evidence, you have to enforce it and apply for an injunction ... this is what this agency will do,” Mr Teo said, adding that CASE will be given more resources to expand their public education programmes.

CASE executive director Seah Seng Choon said it will continue to act as a mediator between consumers and businesses. Noting its existing powers under the Act to seek injunctions against businesses engaging in unfair practices, he added that the new agency could take on an enforcement role, such as bringing cases for criminal prosecution.

Public consultations on the proposed changes are expected to be conducted in the next few months. Amendments to the legislation could be tabled in Parliament by the first quarter of next year.

CASE’s statistics show that there were 24,721 complaints against retailers last year, with motors and electrical and electronics industries topping in terms of number of complaints.

Since 2004, 18 businesses have also signed a Voluntary Compliance Agreement with CASE to stop unfair trading practices and five injunction orders have been taken against errant businesses.