CONSUMER PROTECTION (TRADE DESCRIPTIONS AND SAFETY REQUIREMENTS) BILL

Order for Second Reading read.

5.47 p.m.

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

It is already an offence to apply a false trade description to goods under the Merchandise Marks Act. However, this Act, which was first enacted in 1917, has many shortcomings and is out-of-date for our present day needs. It is considered therefore that the Merchandise Marks Act should be replaced by new and more comprehensive legislation. The provisions of the Consumer Protection Bill have been drafted in consultation with the Consumers' Association of Singapore (CASE) and are on lines similar to the Trade Description Acts of Malaysia and the United Kingdom.

The more extensive provisions in the Bill prohibiting false and misleading description of goods will not only protect the interests of consumers, but also those of honest traders. The coverage of the Bill is not limited to descriptions appearing on products, but extends also to false information given in the course of enquiries or advertisements or oral statements.

The Bill also provides for the disclosure of additional particulars of goods where such information is lacking and of importance to consumers. It is not intended, however, that the disclosure provisions will require the publication of trade secrets or formulae. Indeed, the Bill makes it an offence for any person to disclose to any other person such information if he has obtained them in pursuance of the Act.

Further, the Bill provides that advertisements are to be regulated so as to prevent misleading statements in relation to the goods being advertised. The consumer is entitled to expect that the goods purchased fit the description given in the advertisements.

The Bill also relates to the safe composition, design and construction of goods for the protection of consumers. On safety and health grounds, it is required that certain goods be of stipulated minimum standards. This is not a new requirement as we already have minimum standards set for certain goods, for example, crash helmets, industrial helmets, hair-sprays and the like. It is only after careful examination of the need for minimum standards for consumers' safety that they will be required.

The Bill includes provisions for the Minister to make regulations for the purposes I have mentioned, i.e., to require informative marking and to impose safety requirements and also to allow exemptions of goods from the operations of such regulations. It is the intention that in such regulations, exemptions will be given for goods for export or re-export in any particular case, or in respect of the particular categories of goods. Members are therefore assured that it is not the intention of the Government to restrict regional or international trade.

In the enforcement of the law, the ability to take prompt action will gain favourable consumer reaction and will also act as a deterrent to the commission of offences. The Controller of Consumer Protection is therefore vested with the authority to compound offences for a sum not exceeding $2,000. Such an enabling provision will make administration of the Act less costly as well as help to impress on the traders the need to adhere to the law.

Members may also like to know that under the Act, the Court convicting a person for an offence may, at the same time, award damages to the injured party up to $1,000 without prejudice to the right of the party to take civil action to claim damages beyond this amount.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill.-[Mr Hon Sui Sen].

Bill considered in Committee; reported without amendment; read a Third time and passed.