SINGAPORE — Sim Lim Square’s management committee is tightening the reins on black-sheep tenants, after the mall gained infamy several months ago because of the unscrupulous sales tactics of some of its retailers.

Shops that have received three complaints will be branded and put on watch under a new by-law passed recently. Labels and standees will be placed at their shopfront to warn consumers, while closed-circuit television cameras and audio recording devices will be installed to put them under scrutiny.

The IT and electronics mall has earned a bad reputation over the years for dubious business tactics. Things came to a boil late last year when a Vietnamese tourist was captured on film begging on his knees at a shop for a refund after paying S$950 for a mobile phone.

The new by-law was passed despite the management committee saying last December that its hands were tied under the law when it came to setting rules to dictate that tenants run their businesses fairly.

The mall hopes to persuade errant retailers to change their ways before adopting the new measures as a last resort. Mr Kwek Theng Swee, vice-chairman of Sim Lim Square’s management committee, said: “We do not want to use this so-called weapon. Through persuasion and education, we believe this problem will lessen. It’s very hard for anyone to take it. We are not trying to have some sort of confrontation.”

Mr Kwek added that the enforcement measures would be removed once a retailer has shown improvement. As part of its efforts to boost the mall’s image, the management is also encouraging retailers to attend a subsidised training programme on customer interaction and compliance with laws and service obligations.

The sessions, conducted by Nanyang Polytechnic, will be held at Sim Lim Square from next month. Retailers who complete them will receive a label to assure customers that they are reliable.

Minister of State (Trade and Industry) Teo Ser Luck, who met the mall’s management and visited some of its shops yesterday, said Sim Lim Square has work to do to shore up its image, although errant retailers have been booted out.

In an update on the review his ministry is carrying out on the Consumer Protection (Fair Trading) Act, Mr Teo said: “We realise there may be some areas we need to tighten and strengthen ... We’re looking at different measures, including penalties, the application process (and) streamlining processes to make it more efficient and effective, and the roles of the Consumers Association of Singapore in mediation and education.”

In March, Mr Teo told Parliament that the Ministry of Trade and Industry (MTI) is studying the best practices as well as legislative and penalty frameworks of other countries, particularly those of Hong Kong and Australia, and is considering appointing an agency to undertake investigation and enforcement functions.

Mr Teo added that the MTI is on track to provide an update about this next month.