 |
 |
C@sebites issue 37
22 July 2004
:CASE call upon all business to adopt opt-in approach in dealing with customers
::Bust Enhancement Claims - No Scientific Proof
:::CASE and DSAS to crack down on errant direct selling distributors
::::CASE serves first VCA on hair company
:::::What is the acceptability of an advertisement? - Part 2
::::::Revamped CASE Website records over 25,000 visits since March 2004
:::::::Talk on Litigation Process
::::::::Online polling at CASE Website
:CASE call upon all business to adopt opt-in approach in dealing with customers
CASE strongly believes that companies in Singapore should adopt opt-in business practices. Consumers should not be made liable to any transaction which they had not expressly agreed to. Our stand has been communicated to businesses and public in no uncertain terms and on several occasions. We maintain that a consumer’s right to make his or her own decision has to be observed as a matter of good business practice.
CASE has in the past taken to task businesses, which took the opt-out approach in their transactions with consumers. These businesses had subsequently converted to an opt-in practice after CASE’s intervention.
Proposed Anti-Spam Legislation
We observed that the proposed anti-spam legislation adopts an opt-out regime. This is less than ideal in terms of consumer interest. CASE has taken the position that an opt-in regime should be adopted. While we are fully aware of the reasons given by the authorities of the difficulty of implementing an opt-in scheme because 80% of the spam comes from outside Singapore, the authorities should still work towards an opt-in approach in the long run.
Please participate in our poll to give your views at www.case.org.sg
Marketing of Insurance Products
We are very perturbed by a recent revelation in the media that an insurance company had sold its products based on an opt-out strategy. As a result, the consumer only found out about the transaction after the insurance premium was collected via interbank giro (IBG). He had apparently not consented to purchasing the product or authorise any premium payments via IBG.
Insurance companies must not construe consumer interest in a product or a simple request for brochures as a confirmation of product purchase. It is equally unacceptable for them to impose an opt-out plan on consumers where no consent has been given.
We understand that the insurer in question has refunded the premium to the consumer. We call on this insurer to make refunds to all similarly affected consumers.
Use of Inter-Bank Giro (IBG)
This incident has also raised the issue of the use of the IBG system by businesses. The system was introduced to allow more efficient payment for services. It is not meant to be exploited by businesses at the expense of consumers. Consumers should cancel their IBG arrangement with banks that do not respect their right to consent to deductions made from their accounts.
We urge all businesses to adopt fair trading practices and take into account the interests of consumers at all times.
::Bust Enhancement Claims - No Scientific Proof
CASE notes the recent proliferation of bust enhancement advertisements in the media by beauty salons, which claim “scientifically proven methods”. We also note a recent concern raised in the media by a member of the public regarding the veracity of such claims. Many consumers have also complained to CASE that they were misled by such salons.
CASE strongly advises consumers to insist on proper substantiation of claims made by such salons in the forms of clinical reports or tests. Consumers should also read the fine print of contracts offered by such salons before entering into any agreement. Many salons absolve themselves against any liability in the event that the treatment is unsuccessful. More importantly, consumers should consult their doctor before deciding on such a programme.
Consumers who feel they have been misled by false claims are strongly urged to take the matter up under this Act at the Small Claim Tribunal or report the matter to CASE at 64681811 or email us at complaints@case.org.sg.
For full report, please click here
:::CASE and DSAS to crack down on errant direct selling distributors
The Consumers Association of Singapore (CASE) and the Direct Selling Association of Singapore (DSAS) are to crack down on errant direct selling distributors to weed out “bad apples” in the industry and protect the elderly and heartlanders.
Under the new Consumer Protection (Fair Trading) Act, effective 1 March 2004, traders must inform their customers of a three-day cooling-off period. Failing to do this is illegal and exposes the trader to indefinite legal liability as the cooling-off period will stay valid for the customer beyond the stipulated three days for as long as the trader continues to not divulge to the customer his legal right to this cooling-off period.
Mr Seah said that a Memorandum of Understanding (MOU) had been signed for the DSAS to use CASE for mediation in consumer dispute and complaints against DSAS members.
For full report, please click here
Go To Top
::::CASE serves first VCA on hair company
CASE serves its first voluntary compliance agreement (VCA) on a hair company in May 2004. The company concerned has adopted several unfair trade practices as defined under the Consumer Protection (Fair Trading) Act. The unfair practices involved, amongst others, making unsubstantiated claims in its advertisements. At a meeting with CASE, it agreed not to continue the unfair practices in the future.
Consumers who have undergone hair treatment in or before May 2004 may wish to approach CASE for assistance on this matter. Consumers may call us at 6463 1811 or email us at complaints@case.org.sg.
:::::What is the acceptability of an advertisement? - Part 2
In the last series, the ASAS Council explained the first clause on legality. Today, we will be covering the second clause, decency.
At times, the Council receives complaints regarding advertisements that borders on modesty and decency. Of the 13 clauses, decency is one of the more subjective clauses. In short, the Council looks at the advertising medium, the target audience, frequency and size of the advertisement when assessing the decency of an advertisement.
As a rule of thumb, advertisements should not show more than 50% of the breast area and ensuring that vital parts are covered including the bottom area of the breast.
::::::Revamped CASE Website records over 25,000 visits since March 2004
CASE began the website review mid of 2003 and the revamped website was rolled out on 1 March 2004. Though not officially launched, this website has recorded over 25,000 visits since March 2004. This works out to be at least 170 visits a day and over 120,000 pages viewed.
We have also began an online polling service to gauge consumers' views on hot issues. Early last week, we began a poll on whether the anti-spamming legislation should be based on an opt-in or opt-out system. To date, we have received over 500 votes on this matter! If you haven't vote, please click here to vote!
:::::::Talk on Litigation Process
CASE will be organizing a talk on understanding the litigation process for mediators. The talk will be presented by Ms Joyce Fernando and Ms V Yogarajah, both experienced lawyers and also members of the Mediation Panel Committee. We invite members and CaseTrust members who are interested to know more about the litigation process to attend this talk. The details of the talk are as follows
Date: Saturday 24 July 2004
Time: 2.00 pm to 3.30 pm
Venue: PSB Corp Facilities Room, (Da Vinci – Level 2)
1 Science Park Drive
Fee: $10 per member
For enquiry or reservation booking, please call 6463 1811.
::::::::Online polling at CASE Website
We shall be extending the poll on our CaseTrust accreditation scheme to 31 July 2004 instead of 8 July 2004. This is to enable more members to participate in the poll.
Please participate in the online polling at our website in order to enable us to serve you better. You may access the poll at www.case.org.sg.
We thank those members who have participated in the poll.
|
©Copyright Consumer Association of Singapore