Consumer law heightened to provide more coverage

Come this September, consumers will have a better piece of mind when they shop for durable goods – the existing Consumer Protection and Hire Purchase Acts will be strengthened to better protect the public against defective goods. Known as the “Lemon Law”, the new act will cover anything from fashion apparels to motor vehicles, except rental goods, services and buildings.

According to the Consumer Association of Singapore, complaints regarding to motor vehicles rank fifth among the total numbers received. Besides paving a clearer way for consumers to seek redress upon the purchase of a defective product, it also allows retailers to have a chance to make amendments through repair or replacement of the goods in question.

The Lemon law covers a wide range of vehicles defects for both used and new cars, from aesthetical faults to the more serious safety-related issues. The redress needs to be submitted within six months from the date of delivery. With regards to motor vehicles, claims can be made in the first year of purchase, or 20,000km, whichever arrives first. A total replacement can be requested after three failed attempts to fix the deficiency, or after one correction attempt if the fault in question is related to safety.

The compensation process, suggested in the new act, calls for a change in the current vehicle tax system, as well as amendments to the Road Traffic Act. The changes will allow the transfer of COE and Additional Registration Fee (ARF) to the replacement vehicle within the stipulated period of six months.  Head of motor operations at a leading automobile retailer commented that the amenedments will smooth out the compensation process in the case of a total replacement.