Written reply:
The Government’s approach to
consumer protection is based on promoting
fair trading among retailers, and helping consumers make informed
purchasing decisions. Motor vehicle dealers, including parallel importers, do
not require a licence to operate.
The majority of motor vehicle dealers engage in fair trading practices. Over the period of 2013 to 2015, the Consumers Association of Singapore (CASE) received an annual average of about 120 consumer feedback on car dealers failing to honour contracts. This is less than 1% of the average annual motor vehicle transactions over the same period.
It is a common business practice for motor vehicle dealers to collect prepayment for motor vehicle purchases. This is not considered an unfair trading practice. Consumers can protect their prepayments by making informed purchasing decisions such as reading reviews on the dealer, finding out if the dealer is on the CASE’s alert list, and transacting with dealers which participate in the CaseTrust Accreditation Scheme as they are required maintain a performance bond to protect consumers’ fees and deposits. Car dealers who are members of the Singapore Vehicle Traders Association (SVTA) may leverage on the association’s Local Enterprise and Association Development (LEAD) programme with SPRING Singapore to reduce the cost of signing up for CaseTrust accreditation.
Motor vehicle dealers who indulge in unfair practices will be investigated by SPRING Singapore, the administering agency for the Consumer Protection (Fair Trading) Act. Egregious cases that involve criminal activities will be surfaced to the Police for investigation.