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© 2003 Stephen Loke

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Presentation on

Government Policies on Consumer Protection

at the Asian Symposium on Direct Selling, 29-30 Sep 2003

By Stephen Loke

President, Centre for Corporate Social Responsibility and Partner, Loke & Seah

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© 2003 Stephen Loke

Direct Selling/Door-to-door sales

AdvantagesAn age old industryBringing choice to consumersSave time and travelling costsConvenient as “doorstep” service

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© 2003 Stephen Loke

Problems with direct selling

Impersonation of government officials of utilities board, housing board, etc to gain sales

Pushing sales of water heaters, rubbish cute, doors, iron grilles, stainless steel pots and pans, vacuum cleaners when consumers cannot make brand or price comparison on the spot.

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© 2003 Stephen Loke

High-pressure selling tactics“Hard sell” sales pitchAggressive and intimidating sales techniquesUndue harassment or coercionPersistent, pushing salesmen, refuses to leaveConsumers fickleThe final act – the sympathy card

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© 2003 Stephen Loke

Consumer protection legislation in Singapore

Existing The Consumer Protection (Trade Description and

safety Requirements) Act, 1975 Unfair Contract Terms Act The Misrepresentation Act The Sale of Goods Act The Penal Code The Miscellaneous Offences (Public Order and

Nuisance) Act

Impending The Consumer Protection (Fair Trading) Act, 2003

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© 2003 Stephen Loke

Voluntary Aspects/ self regulation

Public commitments by firms which extend beyond those obligations found in lawCommitments are embodied in voluntary codes: Cooling off period Disclosure of information

HIT Honesty Integrity Transparency

Direct Selling Associations working with consumer groupsWhite listing

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© 2003 Stephen Loke

Business Excellence

Public Relations

CSR

Competition LawFair Trading

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© 2003 Stephen Loke

Business Excellence

Consumer Confidence