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Students from the National University of Singapore Pro Bono Group prepared this guide. The guide is for public education and is not legal advice.

What is the CPFTA?

The Consumer Protection (Fair Trading) Act ("CPFTA") protects consumers against unfair practices by giving them rights in respect of goods or services that are not what they contracted for. There is a financial limit of S$30,000 under the CPFTA.

The Consumer Protection (Fair Trading) (Regulated Financial Products and Services) Regulations 2009 supplement the main body of the CPFTA and explain considerations relevant to financial products and services.

What is an Unfair Practice?
For financial products and services, scenarios of unfair practice may include:

  1. a financial institution claiming to be licensed by the Monetary Authority of Singapore when it is not;
  2. a financial advisor representing that a product has performance characteristics, qualities or benefits that it does not have;
  3. a financial institution taking advantage of a consumer by including terms that are "harsh, oppressive or excessively one-sided so as to be unconscionable";
  4. a financial advisor has through an action or lack of action caused a consumer to reasonably be deceived or misled.

Are there any goods and services NOT covered under the CPFTA?
The CPFTA also applies to MAS-regulated financial services and products, with certain exceptions. However, if your dispute relates to matters which falls within the following categories, you will not be protected by the CPFTA:
  1. If you are involved in a business-to-business dealing;
  2. If you are making a claim that exceeds $20,000 for a contract you had entered between 1 March 2004 and 14 April 2009;
  3. If you are making a claim that exceeds $30,000 for a contract you had entered on or after 15 April 2009;
  4. Sale and purchase of property; and
  5. Contracts of employment.

What Can I Do if there was an Unfair Practice?
You should first try to resolve the dispute with the financial institution. If you cannot settle the dispute that way, your next step could be to go to an institution that can help you.

For financial products or services, you can approach the Financial Industry Disputes Resolution Centre (“FIDReC”). FIDReC offers a free mediation service for consumers. Consumers can also choose to continue with adjudication for a nominal fee. FIDReC helps parties come to a settlement without legal action.
 
For other types of consumer goods and services, you can approach the Consumers Association of Singapore (CASE). You may also consider taking legal action against the supplier in the Small Claims Tribunal or other suitable courts if no resolution is reached through the above channels.

Limitation Period
Take note that there is a time limit for you to bring a claim under the CPFTA. A consumer cannot sue for an unfair practice 2 years after:

  1. the date of the last material event on which the action is based; or
  2. the earliest date the consumer had knowledge of the unfair practice to which the action relates, whichever is later.

Sources
 
Keywords: Consumer Protection (Fair Trading) Act (“CPFTA”)