PART 2 [7/2012] 3. This Part does not apply unless —| (a) | the supplier or consumer is resident in Singapore; or | | (b) | the offer or acceptance relating to the consumer transaction is made in or is sent from Singapore. [7/2012] |
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| Meaning of unfair practice |
4. It is an unfair practice for a supplier, in relation to a consumer transaction —| (a) | to do or say anything, or omit to do or say anything, if as a result a consumer might reasonably be deceived or misled; | | (b) | to make a false claim; | | (c) | to take advantage of a consumer if the supplier knows or ought reasonably to know that the consumer —| (i) | is not in a position to protect his or her own interests; or | | (ii) | is not reasonably able to understand the character, nature, language or effect of the transaction or any matter related to the transaction; or |
| | (d) | without limiting paragraphs (a), (b) and (c), to do anything specified in the Second Schedule. |
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| Circumstances surrounding unfair practice |
5.—(1) An unfair practice may occur before, during or after a consumer transaction.| (2) An unfair practice may consist of a single act or omission. |
(3) In determining whether or not a person has engaged in an unfair practice —| (a) | the reasonableness of the actions of that person in those circumstances is to be considered; and | | (b) | an act or omission by an employee or agent of a person is deemed also to be an act or omission of the person if the act or omission occurred in the course of —| (i) | the employee’s employment with the person; or | | (ii) | the agent exercising the powers or performing the duties on behalf of the person within the scope of the agent’s actual or apparent authority. |
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| Consumer’s right to sue for unfair practice |
6.—(1) A consumer who has entered a consumer transaction involving an unfair practice may commence an action in a court of competent jurisdiction against the supplier.(2) The right to commence an action under subsection (1) does not apply where —| (a) | the amount of the claim exceeds the prescribed limit; or | | (b) | there is no claim for money, and the remedy or relief sought in the action is in respect of a subject matter the value of which exceeds the prescribed limit. |
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| (3) For the purposes of subsection (2)(a), where the amount claimed consists of a balance not exceeding the prescribed limit after set-off of any amount claimed or recoverable by the supplier from the consumer, being a set-off admitted by the consumer in the particulars of his or her claim, the amount of the claim is not taken to exceed the prescribed limit. |
(4) For the purposes of subsection (2)(b), where the subject matter in an action is a residential property, its value is —| (a) | the annual value of the immovable property appearing in the Valuation List prepared under section 10 of the Property Tax Act 1960; | | (b) | the annual rent, or 12 times the monthly rent, payable by the tenant in respect of the immovable property (if this value is lower than the value in paragraph (a)); or | | (c) | if the annual value, annual rent or monthly rent cannot be ascertained, one-tenth of the last transacted price. |
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(5) Where the amount of a claim in an action under subsection (1) exceeds the prescribed limit, the consumer may abandon the excess and thereafter —| (a) | the amount of the claim is deemed to be within the prescribed limit; | | (b) | the consumer must not recover in that action an amount exceeding the prescribed limit; and | | (c) | an order of the court in relation to that action is in full discharge of all demands in respect of that cause of action. |
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| (6) The prescribed limit mentioned in this section is $30,000 or any other amount that the Minister may, by order in the Gazette, prescribe. |
| (7) Any party to an action in a court under subsection (1) may, at any time, apply to that court to stay the proceedings so far as the proceedings relate to an unfair practice in respect of which an application has been made under section 9 against the same supplier. |
| (8) The court to which an application under subsection (7) has been made may, if the court is satisfied that the determination in respect of the application under section 9 will be material to the action under subsection (1), make an order, upon such terms as the court thinks fit, staying the proceedings so far as the proceedings relate to that unfair practice. |
| (9) Where no party to the proceedings has taken any further step in the proceedings for a period of 2 or more years after an order staying the proceedings has been made, the court may, on its own motion, make an order discontinuing the proceedings without prejudice to the right of any of the parties to apply for the discontinued proceedings to be reinstated. |
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| Jurisdiction and powers of courts |
7.—(1) Despite section 5(1)(a) of the Small Claims Tribunals Act 1984, a Small Claims Tribunal has jurisdiction to hear and determine —| (a) | any action under section 6(1) insofar as the action relates to an unfair practice involving a relevant contract; | | (b) | any action under section 8(6), (7) or (8) insofar as the action relates to an undertaking in respect of an unfair practice involving a relevant contract; | | (c) | any action under any regulations made under section 11 insofar as the action relates to a relevant contract, a time share contract or a time share related contract; | | (d) | any action under any provisions specified under section 43(2)(j), insofar as the action relates to a relevant contract; or | | (e) | any action insofar as it relates to a deposit paid in relation to or in contemplation of a motor vehicle sale contract. [33/2018] |
| (2) In subsection (1), “relevant contract” means a contract mentioned in paragraph 1(a) or (c) of the Schedule to the Small Claims Tribunals Act 1984, but does not include a contract relating to the sale of immovable property. [33/2018] |
| (3) To avoid doubt, subsections (1)(b) and (2) to (5) of section 5 of the Small Claims Tribunals Act 1984 apply, with the necessary modifications, to a Small Claims Tribunal exercising the jurisdiction conferred by subsection (1). [33/2018] |
| (4) For the purposes of determining whether an action under section 6(1) exceeds the District Court limit or the Magistrate’s Court limit within the meaning of the State Courts Act 1970, such an action is deemed to be a claim founded on contract. [5/2014] |
(5) Without prejudice to any other powers of the court to grant relief, a court (other than a Small Claims Tribunal) may in any proceedings where the court finds that a supplier has engaged in an unfair practice —| (a) | order restitution of any money, property or other consideration given or furnished by the consumer; | | (b) | award the consumer damages in the amount of any loss or damage suffered by the consumer as a result of the unfair practice; | | (c) | make an order of specific performance against the supplier; | | (d) | make an order directing the supplier to repair goods or provide parts for goods; or | | (e) | make an order varying the contract between the supplier and the consumer. |
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| (6) To avoid doubt, in an action under section 6(1) before a Small Claims Tribunal, the Tribunal may make orders pursuant to the provisions of the Small Claims Tribunals Act 1984. |
| (7) Despite subsections (5) and (6), the court is not to grant any relief in respect of any goods or services intended for business use in an action under section 6(1). |
| (8) For the purposes of subsection (7), the court may apportion the use of goods and services between business use and non‑business use as the court considers just and equitable in the circumstances of the case (even though the goods or services are indivisible) and grant relief only in respect of the portion of goods and services so attributed with non‑business use. |
(9) For the purposes of subsections (7) and (8) and section 39, goods or services intended for business use include —| (a) | goods or services (as the case may be) that the consumer intends to resell in the course of his or her business; and | | (b) | goods that the consumer intends to use up or transform, in the course of his or her business, in a process of production or manufacturing or in repairing or treating other goods or fixtures, |
| and “business use” and “non-business use” are construed accordingly. |
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(10) Where the court finds that an unfair practice has occurred, the court must, in making an order in an action under section 6(1), have regard to whether or not the consumer made a reasonable effort to —| (a) | minimise any loss or damage resulting from the unfair practice; and | | (b) | resolve the dispute with the supplier before commencing the action. |
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| (11) For the purposes of subsection (10)(b), if any specified dispute resolution scheme was available to the consumer in respect of the dispute, the court must consider whether the consumer had sought to resolve the dispute through the scheme. |
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| Voluntary compliance agreement |
8.—(1) Where there are reasonable grounds for believing that a supplier has engaged, is engaging or is likely to engage in an unfair practice, a specified body may invite the supplier to enter into a voluntary compliance agreement.(2) The voluntary compliance agreement must —| (a) | be in writing; and | | (b) | include an undertaking that the supplier will not engage in the unfair practice. |
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(3) Subject to subsection (5), the specified body may (with the agreement of the supplier) include in a voluntary compliance agreement all or any of the following undertakings by the supplier:| (a) | to compensate any consumer who has suffered loss or damage as a result of an unfair practice; | | (b) | to reimburse any specified body for any costs or expenses incurred by it; | | (c) | to publicise the voluntary compliance agreement, |
| in the manner or upon the terms specified in the undertakings. |
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(4) Subject to subsection (5), the specified body may (after entering into a voluntary compliance agreement and with the agreement of the supplier) —| (a) | vary the terms of any undertaking included in the voluntary compliance agreement; or | | (b) | include, in the voluntary compliance agreement, additional undertakings mentioned in subsection (3). |
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| (5) No undertaking referred to in subsection (3)(a) may be included in a voluntary compliance agreement or varied after its inclusion, except at the request of the consumer to whom the undertaking relates. |
| (6) Where a supplier fails to comply with any undertaking referred to in subsection (3)(a), the consumer may recover the compensation specified in the undertaking as a civil debt due to the consumer. |
| (7) Where a supplier fails to comply with any undertaking referred to in subsection (3)(b), the specified body may recover the reimbursement specified in the undertaking as a civil debt due to the specified body. |
| (8) Where a supplier fails to comply with any undertaking referred to in subsection (3)(c), the specified body may publicise the voluntary compliance agreement in accordance with the undertaking and recover the costs and expenses so incurred from the supplier as a civil debt due to the specified body. |
| (9) Unless otherwise provided in the voluntary compliance agreement, recovery of compensation or reimbursement (as the case may be) under a voluntary compliance agreement or under subsection (6), (7) or (8) bars all further actions to recover any loss, damage, costs or expenses to which the undertaking so enforced relates. |
| (10) The Minister may, by notification in the Gazette, appoint any person or body as a specified body for the purposes of this section. [25/2016] |
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| Declaration or injunction |
9.—(1) Where a supplier has engaged, is engaging or is likely to engage in an unfair practice, the District Court or General Division of the High Court may, on the application of the Commission —| (a) | make a declaration that the practice engaged in or about to be engaged in by the supplier is an unfair practice; | | (b) | grant an injunction restraining the supplier from engaging in the unfair practice; and | | (c) | if the District Court or General Division of the High Court grants relief under paragraph (a) or (b), make in addition one or more of the accompanying orders mentioned in subsection (4). [25/2016; 10/2018; 40/2019] |
(2) Where an application is made to the District Court or General Division of the High Court for the grant of a declaration or an injunction under subsection (1), the power of the District Court or General Division of the High Court to grant the declaration or injunction may be exercised —| (a) | if the District Court or General Division of the High Court is satisfied that the supplier has engaged in the unfair practice, whether or not it appears to the District Court or General Division of the High Court that the supplier intends to engage again, or to continue to engage, in the unfair practice; or | | (b) | if the District Court or General Division of the High Court is satisfied that, in the event that a declaration or an injunction is not granted, it is likely that the supplier will engage in the unfair practice, whether or not the supplier has previously engaged in the unfair practice and whether or not there is any likelihood of irreparable harm to any consumer or class of consumers if the supplier engages in the unfair practice. [25/2016; 40/2019] |
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(3) Where an application is made to the District Court or General Division of the High Court for an injunction under subsection (1), the District Court or General Division of the High Court may (pending determination of the application) grant an interim injunction restraining the supplier from engaging in the unfair practice, if the District Court or General Division of the High Court considers it desirable to do so —| (a) | whether or not it appears to the District Court or General Division of the High Court that the supplier intends to engage again, or to continue to engage, in the unfair practice; or | | (b) | whether or not the supplier has previously engaged in the unfair practice and whether or not there is any likelihood of irreparable harm to any consumer or class of consumers if the supplier engages in the unfair practice. [25/2016; 40/2019] |
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(4) The accompanying orders for the purposes of subsection (1)(c) are as follows:| (a) | an order that the supplier must periodically publish, at the supplier’s expense, for a specified period that the supplier continues to be a supplier, the details of the declaration or injunction in the form and manner and at the intervals as will secure prompt and adequate publicity for the declaration or injunction against the supplier; | | (b) | an order that the supplier must, before any consumer enters into a contract in relation to a consumer transaction with the supplier during a specified period —| (i) | notify the consumer in writing about the declaration or injunction against the supplier; and | | (ii) | obtain the consumer’s written acknowledgment of the notice in sub‑paragraph (i); |
| | (c) | an order that the supplier must include in every invoice or receipt issued by the supplier to a consumer during a specified period, a statement that the District Court or General Division of the High Court has granted a declaration or injunction against the supplier; | | (d) | an order that the supplier must, within 14 days after any of the following events occurring in a specified period, notify the Commission in writing:| (i) | a change in the premises or number of premises at which the supplier carries on business as a supplier; | | (ii) | a change in the Internet address or number of Internet addresses through which consumer transactions with the supplier may be entered into; | | (iii) | the supplier converts from a firm or private company to a limited liability partnership under section 26 or 27 of the Limited Liability Partnerships Act 2005, respectively; | | (iv) | the supplier undergoes any arrangement, reconstruction or amalgamation under Part 7 of the Companies Act 1967; | | (v) | an order is made under section 71 of the Insolvency, Restructuring and Dissolution Act 2018 approving a compromise or an arrangement between the supplier and the supplier’s creditors; | | (vi) | the supplier is subject to receivership under Part 6 of the Insolvency, Restructuring and Dissolution Act 2018; | | (vii) | the supplier is subject to judicial management under Parts 7 and 9 of the Insolvency, Restructuring and Dissolution Act 2018; [Act 31 of 2022 wef 01/11/2022] | | (viii) | the supplier is subject to winding up under Parts 8 and 9 of the Insolvency, Restructuring and Dissolution Act 2018; [Act 31 of 2022 wef 01/11/2022] | | (ix) | any other event prescribed under this Act; |
| | (e) | where the supplier is an individual, an order that the individual must inform the Commission in writing if a notifiable event occurs in a specified period; | | (f) | where the supplier is a partnership that has one or more partners who are individuals, an order that any one or all of those individuals must inform the Commission in writing if a notifiable event occurs in a specified period; | | (g) | an order that the supplier must reimburse the Commission for the cost of publishing or causing to be published all or any of the following:| (i) | a notice that the Commission has commenced an action under subsection (1) against the supplier; | | (ii) | a notice that an interim injunction has been granted against the supplier under subsection (3), and details of the interim injunction; | | (iii) | a notice that an injunction, declaration, or both, have been granted against the supplier under subsection (1), and details of the injunction and declaration. [25/2016; 10/2018; 40/2018; 40/2019] |
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(5) For the purposes of subsection (4)(a) and (g)(ii) and (iii), a reference to the details of a declaration, an injunction or an interim injunction granted against a supplier includes the following:| (a) | particulars of the declaration, injunction or interim injunction, as the case may be; | | (b) | the name of the supplier; | | (c) | whether the supplier is subject to any other subsisting declaration or injunction, or both, pursuant to any other action commenced under this section; | | (d) | the address at which the supplier is carrying on the supplier’s business; | | (e) | where the supplier carries on business through the Internet, the Internet address at which the supplier may enter into a consumer transaction with a consumer. [25/2016] |
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| (6) Where the District Court or General Division of the High Court makes 2 or more accompanying orders mentioned in subsection (4)(a), (b), (c) and (d) against a supplier, the specified period in respect of each of the orders must be the same. [25/2016; 40/2019] |
| (7) Subject to subsections (8), (9), (10) and (11), a reference to a specified period in subsection (4) is a reference to such period specified by the District Court or General Division of the High Court, not exceeding 5 years or any other period that the Minister may prescribe in place of the 5 years. [25/2016; 40/2019] |
| (8) If a supplier fails to comply with an order mentioned in subsection (4)(a), (b), (c) and (d) accompanying a declaration or injunction made under subsection (1), the District Court or General Division of the High Court which made the declaration or injunction may, on the application of the Commission, extend the specified period in the order to any time not exceeding the maximum period specified in subsection (10). [25/2016; 10/2018; 40/2019] |
| (9) If an individual fails to comply with an order mentioned in subsection (4)(e) or (f) accompanying a declaration or an injunction made under subsection (1), the District Court or General Division of the High Court which made the declaration or injunction may, on the application of the Commission, extend the specified period in the order to any time not exceeding the maximum period specified in subsection (10). [25/2016; 10/2018; 40/2019] |
| (10) In subsections (8) and (9), the aggregate of the specified period and all extensions of time under each of those provisions must not exceed 10 years after the date on which the accompanying order under subsection (4) was made, or any other period that the Minister may prescribe in place of the 10 years. [25/2016] |
| (11) For the purposes of subsections (7) and (10), any period prescribed by the Minister applies to any application made by the Commission under subsection (1), (8) or (9) (as the case may be) on or after the date of the prescription. [25/2016; 10/2018] |
| (12) Without affecting subsection (8), if a supplier enters into a consumer transaction with a consumer in breach of an accompanying order mentioned in subsection (4)(b), then the consumer may, within 6 months after the date on which the contract was entered into, cancel the contract in accordance with regulations made under section 43(2)(m). [25/2016] |
| (13) Subsections (8), (9) and (12) apply despite any proceedings which may be commenced against the supplier or individual (as the case may be) for contempt of court. [25/2016] |
| (14) If a practice of the supplier has been declared or permanently enjoined by the District Court or General Division of the High Court as being an unfair practice under this section, the order is, in any other civil proceedings involving the supplier except an appeal from the order, conclusive proof that the practice in question is an unfair practice. [25/2016; 40/2019] |
| (15) In this section and section 10, “notifiable event” means an event specified in the Fifth Schedule. [25/2016] |
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| Injunction against person from knowingly abetting, aiding, permitting or procuring supplier to engage in unfair practice |
10.—(1) The District Court or General Division of the High Court may, on the application of the Commission, grant an injunction restraining a person from knowingly abetting, aiding, permitting or procuring a supplier to engage in an unfair practice if —| (a) | the District Court or General Division of the High Court is satisfied that the person has knowingly abetted, aided, permitted or procured the supplier to engage in the unfair practice; or | | (b) | the District Court or General Division of the High Court is satisfied that, in the event that an injunction is not granted, it is likely that the person will knowingly abet, aid, permit or procure the supplier to engage in the unfair practice. [25/2016; 10/2018; 40/2019] |
| (2) An order under subsection (1)(a) may be made whether or not it appears to the District Court or General Division of the High Court that the person intends to continue to abet, aid, permit or procure the supplier to engage in the unfair practice. [25/2016; 40/2019] |
(3) An order under subsection (1)(b) may be made whether or not —| (a) | the person has previously abetted, aided, permitted or procured the supplier to engage in the unfair practice; or | | (b) | there is any likelihood of irreparable harm to any consumer or class of consumers —| (i) | if the person abets, aids, permits or procures the supplier to engage in the unfair practice; or | | (ii) | if the supplier engages in the unfair practice. [25/2016] |
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| (4) Pending the determination of an application by the Commission made under subsection (1), the District Court or General Division of the High Court hearing the application may grant an interim injunction restraining the person from knowingly abetting, aiding, permitting or procuring the supplier to engage in an unfair practice, if the District Court or General Division of the High Court considers it desirable to do so. [25/2016; 10/2018; 40/2019] |
(5) A District Court or the General Division of the High Court may grant an interim injunction under subsection (4) whether or not —| (a) | it appears to the District Court or General Division of the High Court that the person intends to continue to abet, aid, permit or procure the supplier to engage in the unfair practice; | | (b) | the person has previously abetted, aided, permitted or procured the supplier to engage in the unfair practice; or | | (c) | there is any likelihood of irreparable harm to any consumer or class of consumers —| (i) | if the person abets, aids, permits or procures the supplier to engage in the unfair practice; or | | (ii) | if the supplier engages in the unfair practice. [25/2016; 40/2019] |
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(6) If the District Court or General Division of the High Court makes an injunction under subsection (1) against a person, the District Court or General Division of the High Court may, in addition, order —| (a) | that the person must publish, at the person’s expense, for a specified period the particulars of the injunction in the form and manner and at the intervals as will secure prompt and adequate publicity for the injunction against the person; | | (b) | that the person must reimburse the Commission for the cost of publishing or causing to be published all or any of the following:| (i) | a notice that the Commission has commenced an action under this section against the person; | | (ii) | a notice that an interim injunction has been granted against the person under subsection (4), and details of the interim injunction; | | (iii) | a notice that an injunction has been granted against the person under subsection (1), and details of the injunction; and |
| | (c) | where the person is an individual, that the individual must, if a notifiable event occurs in the specified period, inform the Commission in writing within 14 days after the event. [25/2016; 10/2018; 40/2019] |
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(7) For the purposes of subsection (6)(b)(ii) and (iii), a reference to the details of an injunction or interim injunction granted against a person includes —| (a) | the particulars of the injunction or interim injunction, as the case may be; | | (b) | the name of the person; and | | (c) | whether the person is subject to any other subsisting injunction pursuant to any other action commenced under this section. [25/2016] |
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| (8) Subject to subsection (9), a reference to a specified period in subsection (6)(c) is a reference to such period specified by the District Court or General Division of the High Court, not exceeding 5 years or any other period that the Minister may prescribe in place of the 5 years. [25/2016; 40/2019] |
| (9) If an individual fails to comply with an order made under subsection (6)(c), the District Court or General Division of the High Court which made the injunction may, on the application of the Commission, extend the specified period mentioned in the order to any time not exceeding 10 years after the date on which the order under subsection (6)(c) was made, or any other period that the Minister may prescribe in place of the 10 years. [25/2016; 10/2018; 40/2019] |
| (10) For the purposes of subsections (8) and (9), any period prescribed by the Minister applies to any application made by the Commission under subsection (1) or (9) (as the case may be) on or after the date of the prescription. [25/2016; 10/2018] |
| (11) Subsection (9) applies despite any proceedings which may be commenced against the individual for contempt of court. [25/2016] |
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| Right to cancel certain contracts within cancellation period |
11.—(1) The Minister may make regulations prescribing that a consumer who, in relation to a consumer transaction, has entered into a contract falling within any class of contracts specified in the regulations may cancel the contract within a cancellation period specified in the regulations.(2) For the purposes of this section, the Minister may make regulations prescribing —| (a) | the manner in which notices of cancellation may be properly given; | | (b) | any notice that the supplier must give to the consumer and the manner in which the notice may be properly given; | | (c) | the rights and obligations of parties to a contract cancelled pursuant to regulations made under this section, or any other contract entered into for the purposes of the cancelled contract, including the amount or value of any deposit, security, goods or compensation recoverable in an action arising from the cancellation; and | | (d) | the effect of cancellation pursuant to regulations made under this section on any rights the parties to the contract may otherwise have. |
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12.—(1) No action under section 6 may be commenced later than 2 years after —| (a) | the date of the occurrence of the last material event on which the action is based; or | | (b) | the earliest date on which the consumer had knowledge that the supplier had engaged in the unfair practice to which the action relates, including —| (i) | in the case of an unfair practice mentioned in section 4(a) or (b) or involving any representation, act or omission that is false, deceptive or misleading, knowledge that the representation, act or omission is false, deceptive or misleading; and | | (ii) | in the case of an unfair practice mentioned in section 4(c) or involving taking advantage of the consumer, knowledge that the supplier had taken advantage of him or her, |
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[25/2016] | (2) No action under section 8(6), (7) or (8) may be commenced later than one year after the date of the failure to comply with the undertaking sought to be enforced. [25/2016] |
(3) No action under section 9 may be commenced later than 2 years —| (a) | after the date of the occurrence of the last material event on which the action is based; or | | (b) | where the Commission alleges in the action that the supplier has engaged in an unfair practice in respect of any consumer, after the earliest date on which that consumer had knowledge that the supplier had engaged in the alleged unfair practice, as provided in subsection (1)(b), |
[25/2016; 10/2018] |
| (4) The Commission must commence an action under section 10 within 2 years after the date of the occurrence of the last material event on which the action is based. [25/2016; 10/2018] |
| (5) No action under any regulations made under section 11 may be commenced later than one year after the date of the cancellation of the contract. [25/2016] |
| (6) Knowledge that any representation, act or omission did or did not, as a matter of law, involve an unfair practice is irrelevant for the purposes of subsection (1)(b). |
(7) For the purposes of subsection (1)(b), a consumer’s knowledge includes knowledge which he or she might reasonably have been expected to acquire from facts —| (a) | observable or ascertainable by him or her; or | | (b) | ascertainable by him or her with the help of appropriate expert advice which it is reasonable for him or her to seek. |
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| (8) A consumer is not taken, by virtue of subsection (7), to have knowledge of a fact ascertainable only with the help of expert advice so long as the consumer has taken all reasonable steps to obtain (and, where appropriate, to act on) that advice. |
| (9) The Limitation Act 1959 applies (with the necessary modifications, including the modifications set out in the Fourth Schedule) to actions referred to in this section as if such actions were actions for which a period of limitation is prescribed in Part 2 of the Limitation Act 1959. |
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