PROMOTING COMPETITION PROTECTING CONSUMERS

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PROMOTING COMPETITION PROTECTING CONSUMERS
PROMOTING COMPETITION
PROTECTING CONSUMERS

A N N U A L   R E P O R T   2 0 1 9   2 0 2 0
PROMOTING COMPETITION PROTECTING CONSUMERS
The Competition and Consumer Commission of Singapore (“CCCS”) administers and
 enforces the Competition Act (Chapter 50B) which prohibits anti-competitive practices as
well as the Consumer Protection (Fair Trading) Act (Chapter 52A) or CPFTA which protects
  consumers against unfair trade practices in Singapore. CCCS also represents Singapore
  on competition matters and consumer protection matters in the international arena. In
 addition, CCCS has a statutory duty to advise the government or other public authorities
on national needs and policies in respect of competition and consumer protection matters.

  The functions of CCCS are supported by seven divisions, which include: (1) Business &
       Economics, (2) Consumer Protection, (3) Corporate Affairs, (4) Enforcement,
    (5) International, Communications & Planning; (6) Legal, and (7) Policy & Markets.

                                     MISSION
                          Making markets work well to create
                      opportunities and choices for businesses and
                               consumers in Singapore.

                                   ABOUT

                VISION                                       VALUES
                A vibrant                                         Integrity,
                economy with                               Professionalism,
                well-functioning                     Passion, Teamwork.
                  and innovative
                     markets.

                                       THEME
      “Promoting Competition, Protecting Consumers” reflects CCCS’s dual roles.
      The city skyline, which mirrors that of Singapore’s, symbolises CCCS’s role of
   “promoting competition”, while the umbrella signifies “protecting consumers”. The
  barcode design further highlights the dawn of the new digital economy as well as the
  organisation’s efforts to promote competition and protect consumers in this context.
PROMOTING COMPETITION PROTECTING CONSUMERS
04   CHAIRMAN’S
     MESSAGE

     06           CHIEF
                  EXECUTIVE’S
                  MESSAGE

08
                       10
       COMMISSION
       MEMBERS
                                   SENIOR
                                   MANAGEMENT

            11       CCCS
                     ORGANISATION

12
                     STRUCTURE

     CORPORATE

                                    CONTENTS
     GOVERNANCE

     13     OVERVIEW OF
            COMPLETED
            CASES

                          14        ENFORCEMENT

         30           OUTREACH &
                      ADVOCACY

     38       INTERNATIONAL
              ENGAGEMENTS
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

CHAIRMAN’S
MESSAGE
                                 In FY2019, CCCS continued on its mission of making markets
                                 work well for businesses and consumers in Singapore.

CCCS had a significant year in
relation to our enforcement      PROMOTING COMPETITION, PROTECTING
work as we made headway          CONSUMERS
                                 CCCS continued its rigorous enforcement against anti-
in enforcing the Consumer        competitive conduct. Bid rigging is one of the most harmful
Protection (Fair Trading) Act    types of anti-competitive conduct. It distorts the competitive
(CPFTA) to protect consumers     bidding process and prevents businesses from getting the
                                 best value for their tenders. The two noteworthy decisions
against unfair practices.        over the year were in respect of quotations for Wildlife
CCCS also continued              Reserves Singapore, and collusion by three companies
rigorous enforcement against     involved in maintaining swimming pools and water features.
anticompetitive conduct.”
                                 CCCS monitored key developments in the digital economy
                                 to understand how e-commerce platforms potentially
Mr Aubeck Kam                    impact markets, businesses, and consumers in Singapore. In
Tse Tsuen                        September 2019, CCCS released its findings from a market
                                 study on the online travel booking sector in Singapore. This
Chairman
                                 was the first market study that examined both competition
                                 and consumer protection issues since CCCS took on the role
                                 of consumer protection in 2018. The study identified four
                                 common practices of online booking providers that give
                                 rise to consumer protection concerns. CCCS also set out its
                                 recommendations to encourage these providers to adopt
                                 transparent pricing practices.

                                 Following the study, CCCS developed a set of guidelines
                                 on price transparency to help suppliers avoid misleading
                                 consumers and infringing the Consumer Protection
                                 (Fair Trading) Act (“CPFTA”) in both online and offline
                                 transactions. CCCS has sought public feedback on the
                                 proposed guidelines and will be finalising them in 2020.

                                 Our work in consumer protection saw CCCS taking on
                                 persistently errant retailers, and Court orders were separately
                                 issued against a car retailer and an e-commerce retailer.
                                 Following CCCS’s investigation, two beauty parlours signed an
                                 undertaking to cease unfair practices that misled consumers.

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                                                           Competition And Consumer Commission Of Singapore
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

STRENGTHENING PARTNERSHIPS                          dedicated management team and staff at CCCS.
We welcomed our first Memorandum of                 I am also grateful for the continuous support of
Understanding (“MoU”) with the Competition          our partners and stakeholders.
Bureau Canada which covers both competition
and consumer protection. The MoU formalised         I would like to take this opportunity to thank
and reinforced the existing cooperation and         Mr Toh Han Li, who completed his tenure in
technical assistance activities between the         October 2019, for his valuable contributions
two agencies.                                       to CCCS. Mr Toh had been at CCCS for over a
                                                    decade and as its Chief Executive for the last six
CCCS continues to play an active role as one        years. CCCS, under the leadership of Mr Toh,
of the founding members of the International        achieved many “firsts”, including the issuance
Competition Network (“ICN”) Framework on            of its first international cartel infringement
Competition Agency Procedures (“CAP”).              decision in 2014 and the issuance of directions
                                                    in an anti-competitive merger between two ride-
Since broadening our mandate to include             hailing firms in 2018. It was also under Mr Toh’s
consumer protection enforcement, CCCS               leadership that CCCS took on the consumer
has actively participated in both international     protection function, which is complementary to
and regional platforms, such as the ASEAN           its mandate of promoting competition. I wish
Consumer Committee on Consumer Protection           him all the best in his future endeavours.
(ACCP) meetings and the International
Consumer Protection Network’s (“ICPEN”)             I would also like to thank Ms Aileen Chia and
annual conferences and best practices workshop.     Mr Andrew Khoo, who have stepped down
                                                    from the Board, after many years of valuable
We are committed to working together                contribution. At the same time, I would like
with researchers and academics to examine           to welcome Ms Loo Siew Yee, who has been
developments and challenges on competition          appointed with effect from 1 January 2020.
policy and law in the region. CCCS signed a two-
year MOU with the Asian Law and Economics           Finally, a warm welcome to Ms Sia Aik Kor
Association (AsLEA) in June 2019 to co-sponsor      who has taken over the helm as CCCS’s Chief
and act as a supporting organisation for the 2019   Executive with effect from 1 October 2019. Ms
and 2020 AsLEA Annual Conferences to further        Sia is one of CCCS’s pioneers, and was its first
encourage research on competition issues.           Director (Legal & Enforcement) from 2005 to
                                                    2010. Ms Sia oversaw the issuance of the first
                                                    infringement decision against a cartel in 2009,
IN APPRECIATION                                     and put in place competition guidelines during
I thank my fellow commission members for            the formative years of CCCS. I am confident
their invaluable commitment in guiding CCCS         she will bring CCCS to new heights with her
in its decisions and applaud the efforts of our     expertise and experience.

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                                                                              Competition And Consumer Commission Of Singapore
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

CHIEF EXECUTIVE’S
MESSAGE

As we continue to         I took over the role of Chief Executive in October 2019.
                          Having served previously as Director (Legal & Enforcement)
promote competition       when then Competition Commission of Singapore was first
and protect consumers     set up, I am deeply honoured to have the opportunity to
in Singapore, I am        return and lead the commission, which has now expanded its
                          mandate to include consumer protection.
grateful for your
support and look
forward to contributing   ENFORCING THE CONSUMER PROTECTION (FAIR
to CCCS’s continued       TRADING) ACT
                          FY2019 marks the second year that we have taken on the
success.”                 consumer protection role. CCCS handled our first cases
                          involving consumer protection, as we took steps to enforce
Ms Sia Aik Kor            the Consumer Protection (Fair Trading) Act (“CPFTA”).
                          We applied and obtained Court Orders in two cases – the
Chief Executive
                          first against car retailer “SG Vehicles” to cease unfair
                          trade practices over misrepresentations on the terms
                          and conditions of its sales agreements and the second
                          against an online shoe retailer “Fashion Interactive” to
                          stop it from engaging in an unfair trade practice known
                          as a “subscription trap”. Undertakings were secured from
                          “Charcoal Thai 1” (a food and beverage outlet) to end the
                          unfair trade practice of making misleading representations
                          on the discount period in its promotional materials, as well
                          as from “Wishing Well” and “Ruby Beauty” (which has since
                          changed its name to “Sun Beauty”) to cease their unfair
                          practices of using deceptive or misleading methods to
                          entice customers to sign up for packages.

                          The motoring and beauty industries have consistently
                          been ranked among the top three industries with the
                          highest number of complaints received by the Consumers
                          Association of Singapore in 2018 and 2019. CCCS is closely
                          monitoring these industries and will take action against
                          errant retailers for unfair practices under the CPFTA.

                                                                                                      6
                                                   Competition And Consumer Commission Of Singapore
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

CONTINUED ENFORCEMENT OF THE                         organised an essay competition, to educate the
COMPETITION ACT                                      public on various consumer topics such as safe
On the competition front, CCCS continued             online transactions, pre-payment protection,
its rigorous enforcement of the Competition          and common sales tactics.
Act. In this regard, CCCS issued two proposed
infringement decisions against bid rigging           Beyond businesses and consumers, CCCS
conduct. CCCS also obtained voluntary                encourages government agencies to seek
commitments from two lift suppliers to sell lift     advice on the likely impact of their policies
spare parts for maintenance of lifts in public       and initiatives on competition, as well as to
housing estates to third-party contractors           explore alternative options which can reduce
on a fair, reasonable, and non-discrimination        any adverse impact to competition. In FY2019,
basis, bringing about potential cost savings         CCCS issued 26 competition advisories,
for Town Councils. In addition, CCCS reviewed        including one to the Building and Construction
5 merger and acquisitions, which spanned             Authority (“BCA”) on the recognition of
sectors including healthcare, food, waste            accreditation schemes for managing agents,
management, logistics, and shipbuilding. One         as well as an advisory to the Ministry of Health
of the cases involved an in-depth phase 2            (“MOH”) on its initiative to extend subsidies for
review, and pertained to an acquisition involving    vaccinations to the Community Health Assist
clinical laboratories which were considered          Scheme General Practitioners. Besides providing
close competitors before the transaction.            advisories to government agencies, CCCS
CCCS cleared the merger after accepting              regularly conducts outreach activities targeted
commitments by the parties that included             at government agencies and their officers
commitments on non-exclusivity and price.            to raise awareness on competition matters.
                                                     For example, CCCS organised a Community
                                                     of Practice for Competition and Economic
REACHING OUT TO OUR STAKEHOLDERS                     Regulations (“COPCOMER”) Regulators Tea, on
CCCS continues to invest heavily in our outreach     the topic “Digital Platforms – Interplay between
and advocacy efforts to ensure stakeholders          Competition, Consumer Protection and Data
are well educated on the law, with the aim of        Privacy”. Further, CCCS collaborated with the
discouraging anti-competitive and unfair trade       Personal Data Protection Commission (“PDPC”)
practices from occurring in the first place. CCCS    on a joint initiative on data portability. This
continues to regularly engage businesses,            resulted in the provision of inputs by CCCS to
trade associations and chambers to help them         PDPC’s proposal to introduce a data portability
understand how to benefit from competition           obligation in Singapore. CCCS also provided
law, as well as encourage compliance as part of      inputs to the second edition of the Model
good corporate governance. In FY2019, CCCS           Artificial Intelligence Governance Framework
participated in over 30 outreach sessions.           developed by PDPC.

To build awareness on consumer protection            As we continue to promote competition
issues, CCCS participated in a series of publicity   and protect consumers in Singapore, I am
events including roadshows, consumer fairs,          grateful for your support and look forward to
bilingual radio talk shows, TV interviews, and       contributing to CCCS’s continued success.

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                                                                              Competition And Consumer Commission Of Singapore
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

   COMMISSION
   MEMBERS

Chairman
Mr Aubeck                                   Member
Kam                                         Ms Sia               Member
Permanent Secretary                         Aik Kor              Dr Andrew
Ministry of Manpower                        Ex-officio
                                            Member of Human      Khoo Cheng
                       Member
                                            Resource Committee
                                            with effect from     Hoe                   Member
                       Mr Toh               1 Oct 2019           until 30 Sept 2019    Ms Aileen
                       Han Li               Chief Executive      Former Deputy         Chia
                       Ex-officio
                                            Competition          Managing Director     Chairman of Human
                       Member of Human      and Consumer         (Corporate            Resource Committee
                       Resource Committee   Commission of        Development)          until 31 Dec 2019
                       until 30 Sept 2019   Singapore            Monetary Authority
                                                                 of Singapore          Deputy Chief
                       Chief Executive                                                 Executive (Policy,
                                                                                                                  Member
                       Competition                                                     Regulation &               Prof Wong
                       and Consumer                                                    Competition
                       Commission of                                                   Development) /             Poh Kam
                       Singapore                                                       Director-General           Member of Audit
                                                                                       (Telecoms & Post)          Committee
                                                                                                                  with effect from
                                                                                       Infocomm Media
                                                                                                                  1 Jan 2020
                                                                                       Development
                                                                                       Authority                  Professor
                                                                                                                  (Strategy & Policy)
                                                                                                                  School of Business
                                                                                                                  National University
                                                                                                                  of Singapore

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                                                                                      Competition And Consumer Commission Of Singapore
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

    COMMISSION
    MEMBERS

Member
Prof Euston                              Member
Quah                                     Mr Kwek              Member
Member of Audit
Committee
                                         Mean Luck            Ms Cindy
                                         Chairman of Human
with effect from
1 Jan 2020                               Resource Committee   Khoo Seow
Professor and       Member               Solicitor-General    Chyng                 Member
Head, Division of   Mr Kan Yut           Attorney-General’s
                                         Chambers
                                                              with effect from
                                                              1 Apr 2019
                                                                                    Dr Faizal
Economics
Nanyang             Keong,                                    Director,
                                                                                    Bin Yahya
Technological
University
                    Benjamin                                  Strategic Planning    with effect from
                                                                                    1 Apr 2019
                    Chairman of Audit                         Strategic Group
                    Committee                                 Prime Minister’s      Senior Research
                    with effect from                          Office                Fellow                      Member
                    1 Jan 2020
                                                                                    Institute of Policy
                    Retired Accountant                                              Studies, National           Ms Loo
                    Pricewaterhouse                                                 University of
                                                                                    Singapore
                                                                                                                Siew Yee
                    Coopers                                                                                     with effect from
                                                                                                                1 Jan 2020

                                                                                                                Assistant
                                                                                                                Managing Director
                                                                                                                Policy, Payments &
                                                                                                                Financial Crime
                                                                                                                Monetary Authority
                                                                                                                of Singapore

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                                                                                   Competition And Consumer Commission Of Singapore
PROMOTING COMPETITION PROTECTING CONSUMERS
ANNUAL REPORT 2019 • 2020

Mr Toh
Han Li
Chief           Ms Sia
Executive
until 30 Sept   Aik Kor                              Ms Ng
2019            Chief                                Ee Kia
                Executive
                with effect from
                                   Mr Lee            Assistant Chief
                1 Oct 2019         Cheow Han         Executive
                                                     (Policy,
                                   Assistant Chief
                                                     Business &
                                   Executive
                                   (Legal,
                                                     Economics)        Ms Winnie
                                   Enforcement                         Ching
                                   & Consumer                          Director
                                   Protection)                         (Legal)

SENIOR
MANAGEMENT
                                                                                                                           Mr Teo
                                                                                                                           Wee Guan
                                                                                                                           Senior Director
                                                                                                                           (International,
                                                                                                                           Communications
                                                                                                                           & Planning)

                                                                                  Mr Herbert
                                                                                  Fung                Mr Tan
                                                                                  Senior Director     Hi Lin
                                                                                  (Business &
                                                                                                      Director (Policy
                                                               Mr Goh             Economics)
                                                                                                      & Markets)
                                                               Aik Hon
                                                               Director
                                                               (Corporate
                                                               Affairs)
                                             Mr Jack
                                             Teng
                                             Director
                                             (Consumer
                                             Protection)

                                                                                                                                          10
                                                                                       Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020

CCCS
ORGANISATION
STRUCTURE

                                                          Director
                                                          Legal

                      Assistant Chief                     Director
                      Executive                           Enforcement
                      Legal, Enforcement
                      & Consumer                          Director
                      Protection                          Consumer Protection

                                                          Senior Principal
                                                          Legal Counsel

                                            Director
                                            Corporate Affairs
CHAIRMAN AND   Chief
COMMISSION     Executive
MEMBERS        CCCS                         Senior Director
                                            International,
                                            Communications
                                            & Planning

                                                          Senior Director
                                                          Business &
                      Assistant Chief                     Economics
                      Executive
                      Policy, Business &                  Director
                      Economics                           Policy & Markets

                                                          Senior Principal
                                                          Economist

                                                                                              11
                                           Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020

CORPORATE
GOVERNANCE

   CHAIRMAN & COMMISSION MEMBERS                       BUSINESS & ETHICAL CONDUCT
   The Commission oversees the core work of            All CCCS officers are subject to the provisions
   CCCS. It comprises the Chairman and eight           of the Official Secrets Act, the Statutory Bodies
   Commission Members. Appointed by the                and Government Companies (Protection of
   Minister for Trade and Industry, the Chairman       Secrecy) Act and the Public Sector (Governance)
   and the Commission Members bring with them          Act 2018. In addition, the Competition Act
   their expertise in legal, economic and financial    contains provisions governing the disclosure of
   domains from public and private sectors.            information by CCCS officers. CCCS officers are
   The non-executive Commission Members are            also bound by CCCS’s Code of Conduct and are
   remunerated based on Public Service Division        obliged to adhere to internal policies to avoid
   (“PSD”) guidelines.                                 conflicts of interest.

   HUMAN RESOURCE (“HR”) COMMITTEE                     AUDIT COMMITTEE
   The HR Committee was set up in August 2007          The Audit Committee is chaired by Mr Kan Yut
   and is currently chaired by Mr Kwek Mean Luck       Keong (with effect from 5 November 2019) with
   (with effect from 2 January 2020) with Ms Cindy     Prof Euston Quah and Prof Wong Poh Kam as
   Khoo and Ms Sia Aik Kor (with effect from 1         its members. Previously, the Committee was
   October 2019) as its members. Previously, the       chaired by Dr Andrew Khoo (until 30 September
   Committee consisted of Ms Chia Aileen as its        2019) with Mr Kan Yut Keong and Prof Quah as
   Chairman (until 31 December 2019) with Mr           its members. The purpose of the Committee
   Toh Han Li (until 30 September 2019) and Ms         is to assist the Commission in areas relating
   Cindy Khoo as its members. The purpose of the       to audit, finance and accounting, regulatory
   Committee is to advise the Commission with          compliance, and risk management. In addition,
   regard to the formulation and implementation        the Committee reviews the audited annual
   of HR policies in order to uphold a high standard   financial statements and the adequacy of
   of corporate governance within CCCS, and            CCCS’s internal controls with the management,
   promote the organisation as an employer of          external auditors and internal auditors.
   choice. The Committee also oversees staff
   performance appraisals and decides on internal      EXTERNAL AUDIT FUNCTIONS
   disclosure and staff disciplinary cases.            KPMG LLP was appointed by the Minister for
                                                       Trade and Industry in consultation with the
                                                       Auditor-General to audit the accounts of CCCS
                                                       for FY2019. The audited accounts were duly
                                                       approved by the Commission and the Minister
                                                       for Trade and Industry, with the Auditor-General
                                                       kept informed of the audited accounts.

                                                                                                                      12
                                                                   Competition And Consumer Commission Of Singapore
OVERVIEW
                                                                                                                                    ANNUAL REPORT 2019 • 2020

OF COMPLETED CASES
STATUS AS AT 31 MARCH 2020

                                                                                                                                   SINCE CCCS
COMPETITION                                                     FY 2017                  FY 2018                 FY 2019           STARTED
                                                                                                                                   (1 JANUARY 2005)

      PRELIMINARY ENQUIRIES                                             8                        7                      8              136
      INVESTIGATIONS (EXCLUDING LENIENCY)                               2                        3                      4                 48
      LENIENCY                                                          2                        2                      4                 28
      NOTIFICATIONS*                                                    5                      15                       5              120
      PRE-NOTIFICATION DISCUSSION                                       0                        3                      2                 17
      APPEALS                                                           1                        0                      0                 10
      COMPETITION ADVISORIES                                         34                      20                      26                212
      MARKET STUDIES                                                    2                        2                      2                 26

    TOTAL
    (EXCLUDING COMPLAINTS)                                           54                      52                      51                597
* Notifications include Notifications for Guidance and Decision, Merger Notifications Phase 1, and Merger Notifications Phase 2.

CONSUMER PROTECTION                                                                       NUMBER OF COMPLAINTS/
                                                                                                                                                      652
                                                                                          QUERIES HANDLED
   PRELIMINARY ENQUIRIES
   Since 9 December 2016                               37
   FY 2018
                         13          FY 2019
                                                          24                                                                           329
                                                                                                                           237
   INVESTIGATIONS
   Since 9 December 2016                               12                                  152
                                                                                                           210

   FY 2018
                            0        FY 2019
                                                         11                                FY15            FY16           FY17         FY18          FY19

                                         1
COMPLETED                                      ADMINISTRATIVE                                           PROFESSIONAL

                                                                                                       5
INVESTIGATIONS                                 AND SUPPORT
                                               SERVICES
                                                                                                        SERVICES

                                                                                                                                   1
(EXCLUDING

                                                                       2
LENIENCY)
BY INDUSTRY
(FY17-FY19)                                                                     MANUFACTURING                                      TRANSPORT

                                                                                                                                                                 13
                                                                                                              Competition And Consumer Commission Of Singapore
ENFORCEMENT
 CCCS enforces competition and consumer protection
 laws to ensure businesses compete on a level playing
 field and to protect the interests of consumers.
INVESTIGATIONS                                                                                                                                   ANNUAL REPORT 2019 • 2020

19 April 2019
                                                                  | SATURDAY, APRIL 20, 2019 | THE STRAITS TIMES |
                                                                                                                                                                    HOME

SG VEHICLES
CEASES UNFAIR
TRADE PRACTICES
The SG Vehicles group of companies (“SG Vehicles”) was
first placed under the Consumers Association of Singapore’s
(“CASE”) Company Alert list in December 2015 and again, in
July 2017, due to rising consumer complaints against them
despite efforts by CASE to resolve these complaints through       The Consumers Association of Singapore asked SG Vehicles to sign a voluntary compliance agreement in July 2017, but it
                                                                  refused. The Competition and Consumer Commission of Singapore filed an injunction later that year. ST FILE PHOTO

negotiation and mediation.
                                                                  Court orders car
FINDINGS
Between January 2015 and November 2017, CASE received
                                                                  importer to stop
a total of 92 complaints against SG Vehicles. The complaints
cited misrepresentations on the terms and conditions of the
                                                                  unfair trade practices
sale agreement, particularly in relation to the delivery dates
of motor vehicles and bidding for Certificates of Entitlement     This follows application for injunction by
                                                                                                                                                      following:
                                                                                                                                                      • Engaging in unfair practices
                                                                                                                                                        under the Consumer Protection
                                                                  competition watchdog that was filed in 2017
(“COE”). In several cases, consumers were also required to                                                                                              (Fair Trading) Act;
                                                                                                                                                      • Doing or saying anything that
                                                                                                             Ng Huiwen                                  would dupe a consumer into
make additional payments due to a change in circumstances                                                                                               believing that the purchase price
                                                                                                                                                        or COE is fixed or guaranteed;
                                                                                                             Car importer SG Vehicles and its di-     • Making any false claim to a
beyond their control.                                                                                        rector have been ordered by the
                                                                                                             court to stop engaging in unfair
                                                                                                                                                        consumer on the guaranteed
                                                                                                                                                        delivery date of a motor vehicle;
                                                                                                             trade practices, after Singapore’s       • And taking advantage of a
                                                                                                             competition watchdog filed an in-          consumer if they know that the
                                                                                                             junction application against them          consumer is not reasonably able
                                                                                                             in December 2017.                          to understand the character,

                                                                  92
In July 2017, CASE requested for SG Vehicles to sign a                                                         The importer – which is one of
                                                                                                             the biggest players in the industry
                                                                                                                                                        nature, language or effect of the
                                                                                                                                                        transaction.
                                                                                                             – has already earned two black
Voluntary Compliance Agreement to cease its unfair trade                                                     marks from the Consumers Associ-
                                                                                                             ation of Singapore (Case).
                                                                                                                                                        The court order also requires SG
                                                                                                                                                      Vehicles to install a prominent sign

practices, but SG Vehicles declined to do so.                     Number of complaints Case received           Case received 92 complaints            outside its shopfront, stating the
                                                                                                             against SG Vehicles from January         full text of the order for six months
                                                                  against SG Vehicles from January
                                                                                                             2015 to November 2017, with the fig-     from Thursday.
                                                                  2015 to November 2017.                     ure rising despite Case’s initial ef-      It should also notify the commis-
                                                                                                             forts to resolve the complaints          sion of any changes related to its
                                                                                                             through negotiation and mediation.       businesses or Ms Tan’s employ-

CCCS’s investigation revealed evidence of unfair trade
                                                                  2,335
                                                                                                               Consumers claimed SG Vehicles          ment, directorship and partner-
                                                                                                             had misrepresented the terms and         ships statuses.
                                                                                                             conditions of sale agreements –            SG Vehicles will not, however, be

practices by SG Vehicles under the CPFTA.                                                                    mainly the delivery dates of motor
                                                                                                             vehicles and the bidding for certifi-
                                                                                                             cates of entitlement (COEs).
                                                                                                                                                      required to cease its business oper-
                                                                                                                                                      ations, and all its existing sales
                                                                  Number of consumer complaints                                                       agreements made with customers
                                                                                                               Several consumers said they            must be honoured.
                                                                  made to Case from the motoring
                                                                                                             were required to make additional           In 2017, the highest number of
                                                                  industry in 2017.                          payments due to a change of cir-         consumer complaints – 2,335 –
ACTIONS TAKEN                                                                                                cumstances beyond their control.
                                                                                                               Case had asked SG Vehicles to
                                                                                                                                                      made to Case came from the motor-
                                                                                                                                                      ing industry.

                                                                  1,829
                                                                                                             sign a voluntary compliance agree-         This figure dropped by 20 per
CCCS filed an injunction application with the court on 19                                                    ment in July 2017, but it refused to
                                                                                                             do so.
                                                                                                                                                      cent to 1,802 last year, with the
                                                                                                                                                      beauty industry overtaking motor-
                                                                                                               The Competition and Consumer           ing. There were 1,829 complaints
December 2017. A Court Order was issued which took effect         Number of complaints against firms
                                                                                                             Commission of Singapore said yes-
                                                                                                             terday that under the court order,
                                                                                                                                                      against firms in the beauty indus-
                                                                                                                                                      try last year, a 31 per cent increase
                                                                                                             which took effect on Thursday, SG        from 2017.
on 18 April 2019 prohibiting SG Vehicles from engaging            in the beauty industry last year, a 31
                                                                  per cent increase from 2017.
                                                                                                             Vehicles and its director Juliet Tan
                                                                                                             Whye Peck are prohibited from the        nghuiwen@sph.com.sg

in unfair trade practices, including making false claims to
                                                                 Source: The Straits Times © Singapore Press Holdings        Limited.
consumers on the guaranteed delivery date of a motor vehicle      About 25 scammed
                                                                 Reprinted with permission.
                                                                                                             public not to give their personal
                                                                                                             information to strangers or unveri-
                                                                                                             fied sources and not to provide in-

or misleading consumers into believing that the purchase          into getting loans when                                                             formation that is unnecessary
                                                                                                                                                      when making a purchase.

                                                                  buying phones online
                                                                                                                                                         People who suspect they have
price or COE are guaranteed, amongst others.                                                                                                          received an unknown sum in their
                                                                                                                                                      account should report it immedi-
                                                                                                                                                      ately to the bank and the police,
                                                                                                                                                      and not make transactions with
                                                                                                             A scam that tricks people into tak-      the money.
                                                                                                             ing out loans when buying a mobile          The police also advised the pub-
SG Vehicles was also required to install a prominent                                                         phone on e-commerce platforms
                                                                                                             has ensnared about 25 people since
                                                                                                                                                      lic to check the track record and
                                                                                                                                                      background of a company or seller
                                                                                                             November.                                before making a purchase.
sign outside its shopfront(s) stating the full text                                                            In some cases, victims were
                                                                                                             duped into providing their per-
                                                                                                                                                         “Be wary that fraud artists can ap-
                                                                                                                                                      pear and disappear, especially on
                                                                                                             sonal information, such as NRIC          e-commerce platforms, so the lack
of the Order, for a period of six months from                                                                number, or SingPass or bank ac-
                                                                                                             count details, on the pretext of ap-
                                                                                                                                                      of a complaint record is no guaran-
                                                                                                                                                      tee of legitimacy,” said the police.

the date of the Order, and to notify CCCS
                                                                                                             plying for an instalment plan pack-         Those with information on
                                                                  FRAUD ALERT
                                                                                                             age for their phone purchase, said       scams can call the police hotline
                                                                                                             the police yesterday.                    on 1800-255-0000 or submit the

of any changes related to its businesses                          Be wary that fraud artists
                                                                  can appear and disappear,
                                                                                                               They later found a sum deposited
                                                                                                             into their bank account, with the
                                                                                                             scammers demanding that they
                                                                                                                                                      details online at www.police.
                                                                                                                                                      gov.sg/iwitness
                                                                                                                                                         The public can also call the Na-
- such as changes to the premises or                              especially on e-commerce
                                                                  platforms, so the lack of a
                                                                                                             pay the “loan amount” back with in-
                                                                                                             terest.
                                                                                                                                                      tional Crime Prevention Council’s
                                                                                                                                                      X Ah Long hotline on
                                                                                                               In other instances, victims were       1800-924-5664 for information
corporate changes, amongst others.                                complaint record is no                     offered loans to buy mobile              about unlicensed moneylenders.

                                                                  ’’
                                                                  guarantee of legitimacy.                   phones. Some would then receive a           For anti-scam advice, they can call
                                                                                                             sum in their bank account, even if       the National Crime Prevention
SG Vehicles will have to continue                                                                            they had not agreed to the loan of-
                                                                                                             fer. They were later asked to make
                                                                                                                                                      Council’s         helpline
                                                                                                                                                      1800-722-6688 or go to www.scam
                                                                                                                                                                                         on

                                                                                                             repayments.                              alert.sg
to honour all existing sales                                      THE POLICE, on advising the public to
                                                                  check the track record of a company.
                                                                                                               The police issued an advisory on
                                                                                                             the scam yesterday, urging the           Ng Huiwen

agreements they had made
with their consumers.
                                                                                                                                                                                               15
                                                                                                          Competition And Consumer Commission Of Singapore
nation Day and was hospitalised.
                                                               But he still turned up at the nomina-
                                                               tion centre to file his papers, and
                                                               was returned unopposed. Such was
    INVESTIGATIONS                                             his fighting spirit.”                       ANNUAL REPORT 2019 • 2020
                                                                 Mr Conceicao was curious, charis-
                                                               matic and always engaging – quali-

16 August 2019
                                                               ‘Limited                                             Apply now
                                                               period’
CHARCOAL THAI                                                  promotion                                               Part-Time Di
1 RESTAURANT                                                   ran for at                                              By 2010, 1 in
                                                                                                                       increased inc
CEASES UNFAIR                                                  least 2 years                                           help these se
TRADE PRACTICES                                                Charcoal Thai 1 restaurant has been
                                                                                                                       coordinating h
                                                               found to be in breach of the con-
CCCS started investigating Charcoal Thai 1 in 2018 when
                                                               sumer protection law for promot-
                                                               ing meal discounts without specify-                     This course h
it found, as part of its ongoing market monitoring efforts,    ing an end date, Singapore’s compe-
that no end date to the discount period was stated on          tition watchdog said.                                       •          Underst
                                                                  The Competition and Consumer
its promotional materials published on Charcoal Thai 1’s
website, social media page, in-store posters and menu.
                                                               Commission of Singapore (CCCS)
                                                               said in a statement yesterday that it
                                                                                                                           •          Promoti
                                                               started investigations into Char-
                                                               coal Thai 1 last year.                                      •          Preparin
The promotional materials also stated that the discounts          Promotional materials – pub-
for meals such as lunch sets and steamboat items were
                                                               lished on the eatery’s website, social
                                                               media page, in-store posters and
                                                                                                                                      healthca
either available for a “limited period only” or “Ending        menu – said that discounts for lunch
Soon! 50% Discount”, but they continued to be available        sets and steamboat items were for a
                                                               “limited period only” or would be
                                                                                                                        Benefits
for minimally two years from February 2016.                    “ending soon! 50% discount”.
                                                                  But the commission found that                                       Get 5 M
                                                               the items continued to be available
Such claims not only mislead consumers into believing          for at least another two years after                                   pace
that there was a price benefit and scarcity in the             February 2016, when the promo-
availability of the promotional prices, but it also provided
                                                               tions first appeared.
                                                                  Charcoal Thai 1 had breached the                                    We reco
Charcoal Thai 1 with an unfair advantage over businesses       Consumer Protection (Fair Trad-
                                                               ing) Act, which states that it is un-
                                                                                                                                      work ex
who comply with the CPFTA.                                     fair practice for businesses to repre-
                                                               sent that goods and services are                                       Course
ACTIONS TAKEN                                                  available at a discounted price for a
                                                               stated period of time if they know                                     with hea
Charcoal Thai 1 has since agreed to cease the unfair           or ought to know the goods and ser-
practice and not engage in any other unfair practices          vices are available for a substan-
                                                               tially longer period.
                                                                                                                                      Course
under the CPFTA. In particular, it has undertaken not to
make any representations on discounts or promotions in
                                                                  CCCS said such claims not only
                                                               misled consumers into believing
                                                                                                                                      and Per
                                                               that there was a price benefit and
its promotional materials or any other forms of publicity      scarcity in the availability of the pro-                               SkillsFu
without specifying the expiry date for those discounts or      motional prices, but it also gave the
promotions.                                                    eatery an unfair advantage over busi-
                                                               nesses that complied with the Act.
                                                                  Charcoal Thai 1 has since agreed
As Charcoal Thai 1 has taken the necessary steps to            to stop the unfair practice and not
                                                               engage in other similar practices. It
adequately address CCCS’s concerns, CCCS has closed            has also taken steps to address the
the investigation. CCCS will, however, continue to monitor     commission’s concerns.
                                                                  The consumer watchdog has
                                                                                                                                            Co
Charcoal Thai 1’s conduct, and reserves the right to           closed its investigations into the
investigate any breach of the undertaking or any other         case, although it added that it
                                                               would continue to monitor the
unfair practices by the restaurant.
                                                               restaurant’s conduct.
                                                                                                                                           Dat
                                                                  CCCS said it reserves the right to
                                                               investigate any breach of the un-                                              T
                                                               dertaking or any other unfair prac-
                                                               tices by Charcoal Thai 1.
                                                                  It reminded businesses not to en-                                   Venue: L
                                                               gage in any practices that are likely                                      9W
                                                               to mislead consumers.                    Source: The Straits Times ©
                                                                                                        Singapore Press Holdings
                                                               Ng Huiwen                                Limited. Reprinted with
                                                                                                        permission.

                                                                                                                                         16
                                                                                   Competition And Consumer Commission Of Singapore
INVESTIGATIONS                                                                                ANNUAL REPORT 2019 • 2020

17 January 2020

E-Commerce Retailer Fashion                                                CLICK
Interactive Ordered to                                                      ME!
CEASE UNFAIR TRADE
                                                                                       WWW.XXXXXXXXXX

PRACTICES AND STOP                                                                     60%         60%         60%

USING “SUBSCRIPTION
TRAPS”
Fashion Interactive Pte. Ltd.       The Consumers Association of           subscription was required in order
(“Fashion Interactive”) and its     Singapore (“CASE”) had earlier         to purchase shoes at the advertised
director, Mr Magaud Olivier         intervened to help affected            price. Hence, consumers were
Georges Albert (“Mr Magaud”)        consumers obtain refunds for           misled into believing that they were
were issued an order by the         the charges made by Fashion            consenting to a one-off purchase.
State Courts to cease unfair        Interactive to their credit and/
trade practices which had misled    or debit cards. However, new           Through a Court Order which
consumers into signing up for a     complaints were lodged regarding       took effect from 6 January 2020,
recurring membership subscription   Fashion Interactive automatically      Fashion Interactive is prohibited
on its website myglamorous.sg.      charging consumers recurring           from misleading consumers into
                                    monthly membership fees without        signing up and/or continuing with
ACTIONS TAKEN                       their knowledge or consent. CASE       a subscription service requiring
On 28 November 2019, CCCS           later issued a Consumer Advisory       payment or recurring payment.
applied for an injunction against   highlighting the complaints against    Mr Magaud is also prohibited
Fashion Interactive and Mr Magaud   Fashion Interactive in January 2019.   from abetting the retailer, Fashion
to stop them from engaging in an                                           Interactive, in misleading customers
unfair trade practice known as a    Following a referral from CASE,        into doing the same. Under the
“subscription trap”.                CCCS investigated and affirmed         Court Order, Fashion Interactive
                                    that Fashion Interactive had           must abide by the following for
A “subscription trap”               not sufficiently disclosed key         three years:
misleads consumers                  information to consumers. Mr
into signing up for a               Magaud had directed the design of      • Display the details of the
                                    the advertisements and website to         declaration and injunction on the
recurring subscription
                                    focus on the discounts and shoes          landing page of its website;
by giving the impression
                                    for sale, instead of the membership    • Notify customers of the
that it is a one-off                subscription and its recurring            declaration and injunction before
purchase of goods and/              monthly fees. Moreover, throughout        entering into a contract; and
or services. If consumers           the purchase process, no notice was    • Include in every invoice or receipt
do not cancel such                  provided to consumers informing           that a declaration and injunction
subscriptions, typically            them that the membership                  has been granted against it.
within a grace period,
they would be liable for
recurring charges. The
use of “subscription                WHAT               Retailers should provide clear and accurate
                                                       information on the price of goods and services in their
traps” contravenes the              SHOULD             advertisements. Key terms and conditions should be
Consumer Protection (Fair           RETAILERS          prominent, accessible and easy to read.
Trading) Act (“CPFTA”).             DO?
                                                                                                                              17
                                                                           Competition And Consumer Commission Of Singapore
INVESTIGATIONS                                                                 ANNUAL REPORT 2019 • 2020

21 January 2020

Proposed Infringement Decision
AGAINST CONTRACTORS FOR BID
RIGGING OF QUOTATIONS FOR
WILDLIFE RESERVES SINGAPORE
                   On 21 January 2020, CCCS issued a Proposed Infringement
                   Decision (“PID”) against three companies for infringing
                   section 34 of the Competition Act: Shin Yong Construction
                   Pte. Ltd., Geoscapes Pte. Ltd. and Hong Power Engineering
                   Pte. Ltd. (collectively, “the “Parties”). The Parties were found
                   to have participated in anti-competitive agreements by
                   rigging the bids for the provision of building, construction
                   and maintenance services under Invitations To Quote (“ITQ”)
                   and Invitations To Tender (“ITT”) called by Wildlife Reserves
                   Singapore (“WRS”).

                   CCCS commenced its investigation into allegations of bid
                   rigging of civil and electrical works for WRS’s attractions,
                   following a complaint from WRS in April 2016. The
                   investigation revealed that the Parties had exchanged bid
                   information and coordinated their bids for tenders and
                   quotations called by WRS. This was done to create the false
                   impression that independent competitive bids were submitted
                   for the tenders.

                                                                                                              18
                                                           Competition And Consumer Commission Of Singapore
INVESTIGATIONS                                                                                     ANNUAL REPORT 2019 • 2020

31 March 2020

Proposed Infringement Decision
AGAINST THREE WATER FEATURE
MAINTENANCE COMPANIES FOR
BID RIGGING OF TENDERS
On 31 March 2020, CCCS issued           CCCS commenced its investigation
a Proposed Infringement Decision        in September 2017 which revealed                                        CU Water
(“PID”) against three companies         the presence of agreements and/                                         Services Pte. Ltd.
for infringing section 34 of the        or concerted practices on bid
Competition Act: CU Water Services      rigging of tenders involving (i)
                                                                                  Proposed
Pte. Ltd. (“CU Water”), Crystalene      CU Water and Crystalene, and          Infringement
Product (S) Pte. Ltd. (“Crystalene”)    separately between (ii) CU Water           Decision                     Crystalene Product
and Crystal Clear Contractor Pte.       and Crystal Clear.                                                      (S) Pte. Ltd.
Ltd. (“Crystal Clear”) (collectively,
“the “Parties”). The companies          With cover bidding arrangements
provided maintenance and cleaning       between the Parties in tenders,
services for swimming pools,            there was no competitive pressure                                       Crystal Clear
spas, fountains and other water         on the Parties to submit their best                                     Contractor Pte. Ltd.
features. The Parties rigged their      offers to customers. As a result,
bids in tenders for the provision of    customers were unable to obtain
maintenance services for swimming       best value offers that meet
pools, spas, fountains and other        their needs.
water features to privately-owned
developments, including but not
limited to condominiums and hotels
in Singapore.

                                                                                                                                       19
                                                                                 Competition And Consumer Commission Of Singapore
INVESTIGATIONS                                                                                                        ANNUAL REPORT 2019 • 2020

31 March 2020

WISHING WELL BEAUTY CENTRE
AND RUBY BEAUTY PTE LTD CEASE
UNFAIR TRADE PRACTICES HOME                                                       B4

In 2019, CCCS initiated
investigations into two beauty
                                        dollars - considerably higher than
                                        the originally quoted prices to           2 beauty
parlours – Wishing Well Beauty
Centre (“Wishing Well”) and Ruby
                                        the consumer when they were
                                        approached earlier by the staff on
                                                                                  parlours told
Beauty Pte Ltd. (“Ruby Beauty”).        the street. Consumers were also led
                                        to believe that the packages they
                                                                                  to stop unfair
FINDINGS
Investigations revealed that
                                        purchased were transferable with
                                        an unlimited validity period, but the
                                                                                  trading ways
the employees of both beauty            printed invoices and appointment                                                                                             National taekwondo athlete Chelse
                                                                                                                                                                     was born with a hole in her heart, h

                                        cards stated otherwise.                   They were found to have misled customers
parlours would loiter in the vicinity                                             into paying for services they did not agree to
                                                                                                                                                                     chosen as a role model by global b

of Bencoolen Street to entice                                                     Jean Iau                               or take advantage of consumers if
                                                                                                                         the supplier knows that the con-
                                                                                                                                                                     Millennials
consumers with a one-time offer of      ACTIONS TAKEN                             Wishing Well Beauty Centre and
                                                                                                                         sumers are not in a position to pro-
                                                                                                                         tect their own interests, or not able
                                                                                  Ruby Beauty have breached con-         to understand the transaction or            Goh Yan Han
a discounted facial treatment at $38    Wishing Well and Ruby Beauty              sumer protection laws by mislead-
                                                                                  ing customers into paying for ser-
                                                                                                                         any matter related to it.
                                                                                                                           It found that Wishing Well and
                                                                                  vices they did not agree to.           Ruby Beauty had engaged in unfair           To be chosen as a role model by
and/or mole or skin growth removal      (which has since changed its name            In a statement yesterday, Compe-
                                                                                  tition and Consumer Commission
                                                                                                                         trading practices of charging a
                                                                                                                         price for goods or services that is
                                                                                                                                                                     global brand which had earlie
                                                                                                                                                                     recognised notable women suc

service at $5 per removal.              to “Sun Beauty”) have since signed        of Singapore (CCCS) said that both
                                                                                  beauty parlours in Bencoolen
                                                                                  Street have signed an agreement to
                                                                                                                         substantially higher than the esti-
                                                                                                                         mate provided, and misleading con-
                                                                                                                         sumers into thinking that the trans-
                                                                                                                                                                     as tennis player Naomi Osaka wa
                                                                                                                                                                     a surprise for Ms Chelsea Ann Sim
                                                                                                                                                                     24.
                                        an undertaking to cease the unfair        stop such unfair trading practices.
                                                                                     The employees of the parlours
                                                                                                                         actions gave them certain rights.
                                                                                                                           The parlours omitted telling con-
                                                                                                                                                                        Last month, the taekwondo ath
                                                                                                                                                                     lete was one of three national ath
                                                                                  would loiter in the Bencoolen          sumers material facts, used small           letes here selected as role mode

When a persuaded consumer               practices and not to engage in any        Street area to sell consumers one-
                                                                                  time offers of discounted facial
                                                                                                                         print in their brochures and in-
                                                                                                                         sisted on payment for goods and ser-
                                                                                                                                                                     by American company Mattel a
                                                                                                                                                                     part of the Barbie Olympic Game
                                                                                  treatment and beauty services.         vices the consumers did not ask for.        Tokyo 2020 Doll Assortmen
arrived in the beauty parlour for       other unfair practices under the             After the customers agreed, the
                                                                                  staff would instead perform other
                                                                                                                           Wishing Well Beauty Centre
                                                                                                                         hung up the phone when The
                                                                                                                                                                     launch.
                                                                                                                                                                        Ms Sim, 24, who was featured
                                                                                  services such as removing moles or     Straits Times called yesterday.             The Straits Times’ Generation Gr
the service, the staff would not        CPFTA. Both beauty parlours have          skin growths, or a more expensive
                                                                                  facial treatment so as to charge a
                                                                                                                           ST has also reached out to Ruby
                                                                                                                         Beauty for comment.
                                                                                                                                                                     series in March last year, was bor
                                                                                                                                                                     with a hole in her heart.

provide the service agreed upon         undertaken not to use any other           higher fee.
                                                                                     By the end of the treatment, cus-
                                                                                  tomers would have chalked up a
                                                                                                                           CCCS will continue to monitor
                                                                                                                         them and to take action against any
                                                                                                                         unfair practices.
                                                                                                                                                                        “I was very honoured to be s
                                                                                                                                                                     lected by Barbie. It is a once-in-
                                                                                                                                                                     lifetime opportunity to be reco

earlier. Instead, they would perform    deceptive or misleading methods           much higher bill than initially pro-
                                                                                  posed to them.
                                                                                                                           It said that the beauty industry
                                                                                                                         consistently ranked among the top
                                                                                                                                                                     nised by such a big brand, and
                                                                                                                                                                     inspire all the young athletes an
                                                                                     The staff would then entice the     three industries with the most com-         be role models to them,” said M

unsolicited services without the        in order to entice customers to sign      customers to buy a 10-session
                                                                                  beauty package, which ranged from
                                                                                                                         plaints received by Consumers As-
                                                                                                                         sociation of Singapore (Case), and
                                                                                                                                                                     Sim, who is a clients and marke
                                                                                                                                                                     executive at accounting firm D
                                                                                  a few hundred to a few thousand        even took the top spot in 2018.             loitte.
consumer’s consent in order to          up for packages that the customers        dollars, which the consumer did
                                                                                  not know of or agree to when ap-
                                                                                                                           CCCS is also closely monitoring
                                                                                                                         other businesses in the beauty in-
                                                                                                                                                                        She had been training hard fo
                                                                                                                                                                     the world taekwondo champ
                                                                                  proached initially.                    dustry and reminded them not to             onships that was to be held in Den
charge a higher price. The staff        would not otherwise have agreed              They were also falsely told they
                                                                                  could transfer these packages to
                                                                                                                         engage in any unfair practices that
                                                                                                                         mislead consumers.
                                                                                                                                                                     mark in May, but has now bee
                                                                                                                                                                     cancelled because of the coron

would also avoid revealing the          to, in lieu of payment for unsolicited    others, and that the packages were
                                                                                  valid for an unlimited period, when
                                                                                  the printed invoices and appoint-
                                                                                                                           Consumers who come across un-
                                                                                                                         fair practices can call Case on
                                                                                                                         6100-0315, or go to the Case web-
                                                                                                                                                                     avirus outbreak.
                                                                                                                                                                        Another millennial of Gener
                                                                                                                                                                     tion Grit is Mr Jeremy Lim, 2

price difference until after the        treatments.                               ment cards said otherwise.
                                                                                     CCCS said it is unfair for a sup-
                                                                                                                         site.                                       who has brittle bone disease. H
                                                                                                                                                                     was among the recipients of th
                                                                                  plier to mislead, make a false claim   jeaniau@sph.com.sg                          Ten Outstanding Young Person

commencement of the treatment.                                                   Source: The Straits Times © Singapore Press
As a result, the consumers would        CCCS has closed its investigations        2 men file appeals against High Court de
                                                                                 Holdings Limited. Reprinted with permission.
have unknowingly chalked up a           as both beauty parlours have taken
                                                                                  Rei Kurohi                             law criminalising sex between men.       day that they had filed appeals in
substantial amount due to the           the necessary steps to address                                                     Lawyers representing Mr John-
                                                                                                                         son Ong Ming, a disc jockey, and Dr
                                                                                                                                                                  the Court of Appeal.
                                                                                                                                                                    Dr Tan’s lawyer, Mr M. Ravi of Car-

unsolicited treatments and/or           CCCS’s concerns. CCCS will
                                                                                  Two men have filed appeals against     Roy Tan, a lesbian, gay, bisexual        son Law Chambers, is appealing
                                                                                  a High Court decision to dismiss       and transgender (LGBT) rights ac-        “against the whole of the decision”
                                                                                  their legal challenges against the     tivist, told The Straits Times yester-   issued by Justice See Kee Oon on

services provided.                      continue to monitor their
                                        conduct and reserves the
In lieu of full payment for the         right to investigate and
unsolicited treatments and/             take necessary action
or services provided, the staff         against any breach
would pressurise the consumer           of their undertaking
into purchasing a 10-session            or any other unfair
beauty package. As a result, the        practices.
consumer would end up purchasing
beauty packages ranging from a
few hundred to a few thousand

                                                                                                                                                                                      20
                                                                                                                         Competition And Consumer Commission Of Sin
COMMITMENTS
                                           But Republic must transform its economy at
                                           faster pace to meet tech challenges, he says                                                                                                                                           ANNUAL REPORT 2019 • 2020

                                                                Danson Cheong                                His comments come as the Singa-         jing, Shanghai and Guangdong prov-       TWIN CHALLENGES                         ship forward in the next five to 10        Deputy Prime
                                                                China Correspondent                       pore economy feels the effects of es-      ince, including Premier Li Keqiang                                               years, he added.                           Minister Heng
                                                                In Shenzhen                               calating trade tensions between            and Vice-Premier Han Zheng.              The main thing that                        Chinese leaders expressed appre-        Swee Keat spoke
                                                                                                          China and the United States.                  He also co-chaired the Singa-
                                                                                                             Singapore’s first-quarter growth        pore-Shanghai Comprehensive Co-
                                                                                                                                                                                              we must do is to                        ciation for the bilateral cooperation
                                                                                                                                                                                                                                      that had taken place over the years,
                                                                                                                                                                                                                                                                                 to the Singapore
                                                                                                                                                                                                                                                                                 media in
                                                                Singapore is prepared for the nega-       was slower than forecast, prompt-          operation Council, a bilateral busi-     ensure that we                          he said, noting that “at every stage,      Shenzhen

Lift Spare Part Suppliers Provide Commitments to
                                                                tive consequences of the Sino-US          ing the Ministry of Trade and Indus-       ness cooperation platform, and vis-                                              we have been able to look at
                                                                trade war, but it must transform its      try to revise its full-year growth         ited Chinese firms.                      transform our                           projects which are beneficial to
                                                                                                                                                                                                                                                                                 yesterday as he
                                                                                                                                                                                                                                                                                 wrapped up his
                                                                economy at an “even faster pace” if       forecast downwards.                           Mr Heng said one thing that           economy at an                           both sides”.                               visit to China.
                                                                it is to deal with the fallout, Deputy       Since China and the US failed to        struck him from his meetings with                                                   “So, I think this provides a very       He said Beijing
                                                                Prime Minister Heng Swee Keat             reach a trade deal in Washington ear-      the Chinese leaders was that they        even faster pace                        good momentum for us to build on.          was making
                                                                said yesterday.                           lier this month, they have imposed         take a long-term view, focusing on       because besides the                     We are already at a very high level        preparations for
                                                                   Speaking to Singapore reporters        tit-for-tat tariffs on each other’s        key areas and priorities.                                                        of cooperation,” Mr Heng said.             its people to
                                                                                                                                                                                              trade war, we are also

FACILITATE LIFT MAINTENANCE IN
                                                                in Shenzhen as he wrapped up his          goods worth billions of dollars.              “One strong characteristic of the                                                While both countries find new ar-       “stay resilient” if
                                                                visit to China, Mr Heng said that         Washington has also blacklisted Chi-       Chinese system is that the political     going to be faced with                  eas in which to work together, Sin-        the trade war
                                                                although Singapore could weather          nese technology giant Huawei, re-          leaders, as well as the business lead-                                           gapore needs to take a strategic           with the US
                                                                the storm, the trade war was “not         stricting its dealings with US firms.      ers, think in the long term,” he said,   very rapid changes                      view of future developments and            escalates
                                                                                                                                                                                              in technology.

                        ’’
                                                                an issue that can be resolved imme-          Asked how the Chinese leaders           adding that this opens up many ar-                                               position itself well: Its companies        further.
                                                                diately”, and would have a very neg-      were viewing the trade war, Mr             eas in which Singapore and China                                                 need to build deep capabilities, and       PHOTO: MCI
                                                                ative impact on both the regional         Heng said they remained hopeful            can cooperate and work together.                                                 it must have a strong talent pool ex-
                                                                and global economies.                     that it could be resolved in time.            Some areas that China is focused                                              posed to developments in China

HDB ESTATES
                                                                   “The main thing that we must do           “There is a recognition that it is to   on developing are the mega eco-                                                  and around the world.
                                                                is to ensure that we transform our        no one’s benefit... neither the US         nomic zones of the Yangtze River         DEPUTY PRIME MINISTER                      “That is the only way that we can
                                                                economy at an even faster pace be-        nor China, to have this trade war.”        Delta and Greater Bay Area, efforts      HENG SWEE KEAT                          add value. We must raise our capa-
                                                                cause besides the trade war, we are          But he added that China was mak-        which Mr Heng saw first-hand in                                                  bility and continue to be valuable
                                                                also going to be faced with very          ing preparations for its people to         Shanghai and Guangdong.                                                          and useful,” said Mr Heng, who
                                                                rapid changes in technology,” he          “stay resilient if the trade war esca-        He said developments in these                                                 later left Shenzhen for Hong Kong,
                                                                said. “This is of utmost importance,      lates further”.                            two regions as well as in the Belt                                               the last leg of his China visit.
                                                                and we must focus our minds and              Mr Heng’s eight-day visit, which        and Road Initiative were areas                                                      He is scheduled to fly to Tokyo
                                                                our energies on this. I hope that cor-    ended yesterday, was his first to          where both sides could deepen                                                    today to attend the 25th Nikkei
                                                                porate leaders will take this very se-    China since becoming Deputy                collaboration.                                                                   Conference.
                                                                riously – this is also an opportunity     Prime Minister earlier this month.            Mr Heng also had discussions on
                                                                to turn adversity into strength.”            He met top Chinese leaders in Bei-      how to take the bilateral relation-                                              dansonc@sph.com.sg

On 28 May 2019, CCCS concluded
                                           2 more suppliers agree                                                                                                                                                                                          There had been claims that some lift
                                                                                                                                                                                                                                                           manufacturers had refused to supply

its investigations into the supply of      to sell lift spare parts to
                                                                                                                                                                                                                                                           vital spare parts to third-party
                                                                                                                                                                                                                                                           contractors for maintenance work in
                                                                                                                                                                                                                                                           HDB estates, preventing them from

lift spare parts for the maintenance
                                                                                                                                                                                                                                                           doing a proper job or winning new

                                           third-party contractors                                                                                                                                                                                         contracts. ST FILE PHOTO

of lifts in Housing & Development
Board (“HDB”) estates following            Melissa Heng                                 In a phone interview with The
                                                                                      Straits Times, Nee Soon Town                                                                                                                                         There are about 24,000
                                                                                      Council chairman and MP for Nee                                                                                                                                      lifts of different brands
the acceptance of the voluntary            Two more lift parts suppliers have
                                           agreed to sell spare parts to third-
                                           party lift contractors on a “fair,
                                                                                      Soon GRC Louis Ng said it was
                                                                                      good that the lift parts suppliers
                                                                                      had committed to working with
                                                                                                                                                                                                                                                           installed in HDB estates
                                                                                                                                                                                                                                                           across Singapore. Town

commitments provided by Chevalier
                                           reasonable and non-discriminatory          third-party contractors.                                                                                                                                             councils can appoint the
                                           basis”, Singapore’s competition              He said: “More competition
                                           watchdog said yesterday.                   means better options for consumers                                                                                                                                   lift installers to carry out
                                              This will ensure that third-party       and better service. This opens things                                                                                                                                maintenance or get a
Singapore Holdings Pte. Ltd. and           contractors can obtain spare parts
                                           to maintain lifts in HDB estates.
                                           Third-party contractors are typi-
                                                                                      up for the town councils as well and
                                                                                      gives us more options when looking
                                                                                      for contractors.”
                                                                                                                                                                                                                                                           third-party contractor.

Fujitec Singapore Corporation Ltd.
                                           cally cheaper to hire than the origi-        In response to questions from
                                           nal lift installers.                       ST, Dr Teo Ho Pin, coordinating
                                              The Competition and Consumer            chairman of the People’s Action          to award our lift contracts so as to      ning new contracts.                      these... contractors may be pre-         and C&W Services Operations.
                                           Commission of Singapore (CCCS)             Party (PAP) town councils, also          obtain value for money in our con-           There are about 24,000 lifts of       vented from effectively competing          Once similar commitments were

Both companies will undertake to           said yesterday that it had accepted
                                           voluntary commitments by Cheva-
                                           lier Singapore Holdings and Fujitec
                                                                                      welcomed the commitments from
                                                                                      the suppliers, saying they were the
                                                                                      correct move for fair competition.
                                                                                                                               tracts,” he said.
                                                                                                                                 In 2016, the CCCS began investi-
                                                                                                                               gating claims that some lift manu-
                                                                                                                                                                         different brands installed in HDB
                                                                                                                                                                         estates across Singapore. Town
                                                                                                                                                                         councils can appoint the lift install-
                                                                                                                                                                                                                  for contracts to maintain and ser-
                                                                                                                                                                                                                  vice lifts of that particular brand,”
                                                                                                                                                                                                                  said the CCCS.
                                                                                                                                                                                                                                                           made by Chevalier Singapore
                                                                                                                                                                                                                                                           Holdings and Fujitec Singapore
                                                                                                                                                                                                                                                           Corporation, the investigation was

sell lift spare parts (with software if
                                           Singapore Corporation that fully ad-         Dr Teo said PAP town councils          facturers had refused to supply           ers to carry out maintenance or get        One lift company – EM Services –       concluded. The five companies
                                           dress concerns relating to the sup-        adopted a Price Quality Method           vital spare parts, such as mother-        a third-party contractor.                made commitments in 2016, the            installed more than 70 per cent of
                                           ply of their brands of lift spare parts.   Tender evaluation approach when          boards, to third-party contractors           “If a lift company or distributor     year the investigation began, that       the lifts in HDB estates, said the
                                              The CCCS had previously ac-             awarding lift contracts.                 for maintenance work in Housing           does not provide proprietary but         addressed the concerns raised.           CCCS.

applicable) of the relevant brands         cepted similar commitments from
                                           three other companies.
                                                                                        “We evaluate both the prices and
                                                                                      performance of the lift contractors
                                                                                                                               Board estates, preventing them
                                                                                                                               from doing a proper job or win-
                                                                                                                                                                         essential lift spare parts to third-
                                                                                                                                                                         party lift maintenance contractors,
                                                                                                                                                                                                                    Last year, the CCCS received com-
                                                                                                                                                                                                                  mitments from BNF Engineering            melheng@sph.com.sg

to third-party contractors on a fair,     Source: The Straits Times © Singapore Press Holdings Limited. Reprinted with permission.
                                           Court clears doctor who was suspended for giving inadequate medical leave
reasonable and non-discriminatory
basis, subject to certain terms and       contracts to maintain and service
                                           Salma Khalik                               ganisation for Migration Econom-         blood vessels from the palm of the        agement. But even if his instruc-        “seriously negligent”, nor did he dis-   tor to the main thrust of the allega-
                                           Senior Health Correspondent                ics, which alleged that he had col-      hand to sustain the tissue of the fin-    tions had been followed, the tri-        regard the patient’s interest.           tions against him.”
                                                                                      luded with the patient’s employer.       ger as it healed.                         bunal said it was not the practice to      The court judgment, delivered            It also said that while this case
                                                                                      The Ministry of Manpower does              The worker was warded for one           order light duties on the second         by Justice Judith Prakash, also          took it as the doctor’s duty to ascer-

conditions.                               lifts of a brand. As a result, they
                                           A doctor who was suspended for
                                           six months by a disciplinary tri-
                                           bunal for not giving a worker
                                                                                      not require reports of work acci-
                                                                                      dents that require fewer than three
                                                                                      days of medical leave.
                                                                                                                               night, and Dr Looi left instructions
                                                                                                                               for a day’s medical leave and a week
                                                                                                                               of light duties on discharge. He was
                                                                                                                                                                         post-operative day.
                                                                                                                                                                           But the Court of Three Judges
                                                                                                                                                                         said Dr Looi should not be held ac-
                                                                                                                                                                                                                  pointed out that whether light du-
                                                                                                                                                                                                                  ties are medically appropriate is dis-
                                                                                                                                                                                                                  tinct from whether the patient “ac-
                                                                                                                                                                                                                                                           tain that light duties were available,
                                                                                                                                                                                                                                                           “that need not invariably be the way
                                                                                                                                                                                                                                                           cases are pursued in the future”. It

                                          may be prevented from effectively
                                           enough time to recover after frac-           On Aug 7, 2011, the tip of the mid-    to review the patient the next day.       countable for what the discharging       tually and eventually performed          added: “It is difficult to see how a doc-
                                           turing a finger has been cleared by        dle right finger of Mr Vadamodulu          The next morning, the safety offi-      doctor did, but for what he himself      such activities”.                        tor’s failure to ascertain the availabil-
                                           the Court of Three Judges.                 Tata Rao, a shipyard welder from         cer from the company, Tellus              had prescribed. On that, the court         The court, in a concluding note,       ity of light duties would result in the
                                             Both the doctor and the Singa-           India in his early 30s, was crushed      Oceanic Pro, visited Mr Rao and           said giving light duties was a medi-     said that given the way the charges      giving of such light duties being con-

FINDINGS                                  competing for contracts to
                                           pore Medical Council (SMC) had
                                           appealed against the suspension,
                                           with the SMC wanting it to be in-
                                                                                      when a steel plate fell on his right
                                                                                      hand. He was taken to West Point
                                                                                      Hospital, where Dr Looi performed
                                                                                                                               asked for him to be discharged. The
                                                                                                                               resident medical officer discharged
                                                                                                                               him with two days of medical leave –
                                                                                                                                                                         cally appropriate course of action.
                                                                                                                                                                           It found that Dr Looi knew the
                                                                                                                                                                         company had systems in place that
                                                                                                                                                                                                                                  ----
                                                                                                                                                                                                                  were framed, it was not clear if the
                                                                                                                                                                                                                  main charge was that the doctor
                                                                                                                                                                                                                  had not checked if light duties were
                                                                                                                                                                                                                                                           sidered ‘inadequate medical leave’.”
                                                                                                                                                                                                                                                             The SMC’s appeal to have the sen-
                                                                                                                                                                                                                                                           tence increased was dismissed be-

                                          maintain lifts of a particular brand
                                           creased to two years.                      the first of a two-stage operation       for Aug 7 and 8 – with no light duties.   allowed workers to perform simple        available, or that the medical leave     cause the court found that the doc-

In 2016, CCCS started investigating          The complaint against or-
                                           thopaedic surgeon Looi Kok Poh
                                           was made by the Humanitarian Or-
                                                                                      in which the injured finger was at-
                                                                                      tached to the skin flap at the base
                                                                                      of the thumb. This would allow
                                                                                                                                 The disciplinary tribunal said Dr
                                                                                                                               Looi, as the primary doctor, was re-
                                                                                                                               sponsible for post-operative man-
                                                                                                                                                                         duties such as tasks in the office or
                                                                                                                                                                         guardhouse that would not jeopar-
                                                                                                                                                                         dise the injury. Thus, he was not
                                                                                                                                                                                                                  given was not enough.
                                                                                                                                                                                                                    It said: “Charges that are brought
                                                                                                                                                                                                                  against a doctor must alert the doc-
                                                                                                                                                                                                                                                           tor was not guilty.

                                                                                                                                                                                                                                                           salma@sph.com.sg

alleged refusals to supply lift spare     if lift companies refuse to supply
parts for the maintenance of lifts in     essential spare parts of that brand.
HDB estates. Over 20,000 lifts of
different brands are installed in HDB     OPENING UP COMPETITION
estates across Singapore, where the       FOR MORE OPTIONS
majority is maintained by the Original    In total, CCCS accepted
Equipment Manufacturers (“OEMs”).         commitments from five lift
Town Councils can appoint OEMs            companies – EM Services Pte.
or a third-party contractor to carry      Ltd., BNF Engineering (S) Pte. Ltd.,
out maintenance work. In general,         C&W Services Operations Pte.
there are likely to be cost savings       Ltd., Chevalier Singapore Holdings
when engaging a third-party lift          Pte. Ltd. and Fujitec Singapore
maintenance contractor for multiple       Corporation Ltd. It is estimated that
brands as compared to procuring lift      these companies installed more
maintenance services from each OEM.       than 70% of the lifts in HDB estates
                                          in Singapore.
Hence, the refusal to provide
proprietary but essential lift spare      CCCS considered the commitments
parts by OEMs to third-party lift         to adequately address competition
maintenance contractors may               concerns in relation to the supply of
breach the Competition Act (Cap.          different brands of lift spare parts and
50B) for abuse of a dominant              has communicated the acceptance
position. The inability of third-party    to Town Councils. This is to ensure                                                                                                                                                No entry
contractors to obtain proprietary         that they are better informed when
but essential lift spare parts pose       procuring lift maintenance services
significant obstacles for them as         and in reporting potential anti-
they try to compete with OEMs for         competitive practices.

                                                                                                                                                                                                                                                                                                       21
                                                                                                                                                                           Competition And Consumer Commission Of Singapore
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