no. s 65 - consumer protection (fair trading) act (chapter 52a

NO.S 65

First published in the Government Gazette, Electronic Edition, on 23rd February 2009 at 5:00 pm.

CONSUMER PROTECTION (FAIR TRADING) ACT

(CHAPTER 52A)

CONSUMER PROTECTION

(FAIR TRADING) (CANCELLATION OF CONTRACTS)

REGULATIONS 2009

ARRANGEMENT OF REGULATIONS

Regulation

1. Citation and commencement

2. Definitions

3. Exclusions

4. Right to cancel contract

5. Effect of cancellation of contract

6. Return of goods by consumer on cancellation of direct sales contract

7. Compensation for services on cancellation of regulated contract

8. No imposition of additional duty or liability on consumer

9. Burden of proof

10. Revocation

11. Transitional provision

The Schedules

In exercise of the powers conferred by sections 11, 18A and 20 of

the Consumer Protection (Fair Trading) Act, the Minister for Trade

and Industry hereby makes the following Regulations:

Citation and commencement

1. These Regulations may be cited as the Consumer Protection

(Fair Trading) (Cancellation of Contracts) Regulations 2009 and shall

come into operation on 15th April 2009.

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Definitions

2.—(1) In these Regulations, unless the context otherwise

requires —

‘‘cancellation period’’ means the period specified in regulation

4(1);

‘‘consumer information notice’’ means a notice in writing

containing the information required under regulation 4(6);

‘‘designated person’’ means a person designated in a consumer

information notice as the person to whom notice of

cancellation of a contract may be given;

‘‘direct sales contract’’ means a consumer transaction which is

entered into —

(a) during an unsolicited visit by a supplier to —

(i) the place of residence of the consumer;

(ii) the place of residence of another person; or

(iii) the place of business of the consumer;

(b) during a visit by a supplier to any place referred to in

paragraph (a) at the express request of the consumer

where —

(i) the goods or services to which the contract

relates are not goods or services for which the

consumer requested the supplier’s visit; and

(ii) the consumer did not know, or could not

reasonably have known, the supply of such

goods or services formed part of the supplier’s

business activities; or

the supply by the supplier of the goods or services in

the circumstances referred to in paragraph (a)or(b);

‘‘initial contact’’ means —

(a) any meeting of the supplier and the consumer at

a place other than the supplier’s permanent place of

business; or

(b) any communication between the supplier and the

consumer by telephone;

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‘‘notice of cancellation’’ means a notice of cancellation given

under regulation 4;

‘‘regulated contract’’ means a direct sales contract, a time share

contract or a time share related contract;

‘‘supplier’s permanent place of business’’ does not include the

supplier’s temporary premises at a trade fair, exhibition or

promotional event;

‘‘time share related contract’’ means a contract to assist

a consumer to dispose of his time share rights conferred

under a time share contract;

‘‘trade-in allowance’’ means the greater of —

(a) the price or value of the consumer’s goods as set out in

a trade-in arrangement; or

(b) the market value of the consumer’s goods when taken

in trade under a trade-in arrangement;

‘‘trade-in arrangement’’ means an agreement or arrangement,

contained in a direct sales contract or forming the whole or

part of a related contract, under which the consumer sells or

agrees to sell the consumer’s own goods to the supplier or

any other person and the goods are accepted as the whole or

part of the consideration under the direct sales contract;

‘‘unsolicited visit’’ means a visit by a supplier, whether or not he

is the supplier who supplies the goods or services, which does

not take place at the express request of the consumer.

(2) For the purposes of these Regulations, references to a supplier —

(a) shall be construed as references to a supplier, within the

meaning of the Act, with whom a consumer enters into

a contract; and

(b) in the definitions of ‘‘direct sales contract’’ and ‘‘unsolicited

visit’’ in paragraph (1) and in regulation 3(e) and (f), shall

include an employee or agent of the supplier.

(3) For the purposes of the definition of ‘‘unsolicited visit’’ in

paragraph (1), a consumer shall not be considered to have made

an express request for a visit by the supplier by reason only that

the consumer consented to the visit by the supplier during or after

an initial contact at which the supplier indicates expressly or by

implication that the supplier is willing to visit the consumer.

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(4) In these Regulations, section 7(8) of the Act shall apply for

the purposes of construing the meaning of the term ‘‘business use’’.

Exclusions

3. These Regulations shall not apply to —

(a) any excluded transactions specified in the First Schedule to

the Act;

(b) any lease of residential property;

business use;

(d) any contract under which the total payments to be made by

a consumer do not exceed $50;

(e) any direct sales contract if, prior to the visit during which the

consumer entered into the contract or made an offer referred

to in paragraph (c) of the definition of ‘‘direct sales contract’’

in regulation 2(1), the terms of the contract were read by or

explained to the consumer in the absence of the supplier;

(f) any direct sales contract resulting from prior negotiations

between the consumer and the supplier which took place in

circumstances other than those referred to in paragraph (a)

or (b) of the definition of ‘‘direct sales contract’’ in regulation

2(1);

(g) any direct sales contract entered into by a consumer —

(i) during a visit made by the supplier at the express

request of another person to that other person’s place

of residence or business; or

(ii) after an offer was made by the consumer in respect of

the supply of the goods or services in the circumstances

referred to in sub-paragraph (i),

if the consumer attended the visit with the prior knowledge

that the supplier would be present to engage in the supply of

the goods or services to which the contract relates; and

(h) any contract for the supply of financial products or financial

services in respect of which a right of cancellation exercisable

within a specified period is conferred on the consumer by

any written law administered by the Monetary Authority of

Singapore or directions issued under section 101 or 293 of

the Securities and Futures Act (Cap. 289) by the Monetary

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Authority of Singapore, if that specified period expires later

than 5 days (excluding Saturdays, Sundays and public

holidays) after the day on which the contract was entered into.

Right to cancel contract

4.—(1) A regulated contract may not be enforced against the

consumer at any time earlier than 5 days (excluding Saturdays, Sundays

and public holidays) after —

(a) the day on which the regulated contract is entered into; or

(b) if the consumer information notice has not been brought to

the attention of the consumer before or at the time when

the regulated contract is entered into, the day on which

the consumer information notice is subsequently brought to

the attention of the consumer.

(2) Where a consumer has entered into a regulated contract, the

consumer may give notice of cancellation of the contract in accordance

with this regulation at any time within the cancellation period.

(3) If, in a case falling within paragraph (1)(b), the consumer affirms

the regulated contract at any time after the expiry of 5 days (excluding

Saturdays, Sundays and public holidays) after the day on which the

regulated contract was entered into —

(a) these Regulations shall not prevent the contract from being

enforced against the consumer; and

(b) the consumer may not at any subsequent time give notice of

cancellation under paragraph (2).

(4) If the consumer, having given notice of cancellation of

a regulated contract in accordance with this regulation, subsequently

enters into a contract (referred to in this paragraph and paragraph (5)

as the subsequent contract) with the supplier on substantially the same

terms as the cancelled regulated contract at any time before the expiry

of the cancellation period of the cancelled regulated contract —

(a) the subsequent contract shall not be enforced against the

consumer at any time within the cancellation period of

the cancelled regulated contract; and

(b) the consumer may give notice of cancellation of the

subsequent contract at any time within the cancellation period

of the cancelled regulated contract.

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(5) Paragraph (4) shall not prevent paragraphs (1) and (2) from

applying to the subsequent contract if the subsequent contract is

a regulated contract.

(6) A consumer information notice shall inform the consumer of his

right to cancel the contract under these Regulations and in particular

shall contain the information specified in the First Schedule.

(7) A notice of cancellation may be in the form set out in the Second

Schedule or in any other notice in writing of the consumer’s intention

to cancel the contract under these Regulations.

(8) Subject to paragraph (9), a notice of cancellation shall be

given —

(a) by delivering it to a designated person personally;

(b) by leaving it at, or by sending it by pre-paid post to,

an address designated in the consumer information notice;

designated in the consumer information notice.

(9) If the consumer information notice has not been brought to the

attention of the consumer or does not contain any of the information

specified in Part A of the First Schedule, a notice of cancellation may

be given by leaving it at or by sending it by pre-paid post to —

(a) the usual or last known address of the place of business of

the supplier or designated person (if any); or

(b) in the case of a body corporate, the registered office or

principal office of the supplier or designated person (if any).

(10) A notice of cancellation sent by a consumer by pre-paid post

shall be deemed to have been given at the time of posting, whether or

not it is actually received.

(11) Notwithstanding paragraphs (8) and (9), if the supplier agrees

to accept notice of cancellation by any additional means, including

electronic means, the notice may be given by the means so agreed.

Effect of cancellation of contract

5.—(1) Where a contract is cancelled under regulation 4 —

(a) the contract shall cease to be enforceable;

(b) any sum which the consumer has paid under or in

contemplation of the contract to the supplier, or to any

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person who is the agent of the supplier for the purpose of

receiving that sum, shall be repaid to the consumer by the

supplier within 60 days after the consumer has given notice

of cancellation of the contract to the supplier;

any goods in the possession of the consumer or any person

on his behalf for any sum payable to the consumer under

sub-paragraph (b) or paragraph (2)(b);

(d) any security which the consumer has provided in relation to

the contract shall be treated as not having had effect and any

property lodged with the supplier solely for the purposes of

the security shall be returned by the supplier within 60 days

after the consumer has given notice of cancellation of the

contract to the supplier;

(e) subject to regulations 6 and 7, no sum or other consideration

may be recovered by or on behalf of the supplier from the

consumer in respect of the contract; and

(f) any other contract arranged by the supplier and entered into

by the consumer for the purposes of the contract prior to the

cancellation shall not be enforceable against the consumer.

(2) In the case of a trade-in arrangement, if the contract is

cancelled under regulation 4, the supplier shall either —

(a) return the goods delivered by the consumer under the trade-in

arrangement to the consumer in a condition substantially

the same as when they were delivered by the consumer; or

(b) pay to the consumer a sum equal to the trade-in allowance.

(3) When a consumer recovers an amount equal to the trade-in

allowance, then, if the title of the consumer to goods delivered by

the consumer under the trade-in arrangement did not pass from the

consumer, the title shall vest in the person entitled to the title under

the trade-in arrangement.

(4) Subject to paragraph (5), the breach of any duty imposed by

these Regulations on a supplier or consumer shall be actionable as

a breach of statutory duty in a court.

(5) In the case of an action for a breach of duty under paragraph

(1)(b), the value of the claim shall not exceed $30,000.

(6) If, apart from these Regulations, a consumer could have

cancelled the contract under any rule of law or any contractual right

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or other arrangement with the supplier, the fact that the consumer

has cancelled the contract pursuant to these Regulations shall not

prejudice his right to any compensation that he would have if he had

cancelled the contract under that rule of law, contractual right or

arrangement.

(7) In determining the amount recoverable in a claim for

compensation under a right referred to in paragraph (6), the court

shall take account of any compensation which has been given to the

consumer in satisfaction of any claim for a breach of duty under these

Regulations relating to the cancellation of the same contract.

(8) In determining the amount recoverable in a claim by a consumer

for a breach of duty under these Regulations, the court shall take

account of any compensation which has been given to the consumer in

satisfaction of any claim for compensation referred to in paragraph (6)

relating to the cancellation of the same contract.

Return of goods by consumer on cancellation of direct sales contract

6.—(1) Subject to paragraph (2), a consumer who has, before

cancelling a direct sales contract under these Regulations, acquired

possession of any goods by virtue of the direct sales contract shall —

(a) be under a duty, subject to any lien, upon the cancellation to

return the goods to the supplier; and

(b) for the time being retain possession of the goods and take

reasonable care of them.

(2) The consumer shall not be under a duty to return —

(a) perishable goods;

(b) goods which by their nature are consumed by use and which,

before the cancellation, were so consumed;

(d) goods which, before the cancellation, had become

incorporated in any land or thing not comprised in the

contract.

(3) Where paragraph (2) applies, the consumer shall be under a duty

to pay reasonable compensation for the supply of the goods and for

the provision of any services in connection with the supply of the goods

before the cancellation.

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(4) The consumer shall be discharged from any duty to retain

possession of the goods or return them to the supplier at the time

he delivers the goods to the supplier or to a person designated by

the supplier for such purposes.

Compensation for services on cancellation of regulated contract

7. Where a consumer cancels a regulated contract under these

Regulations, the consumer shall be under a duty to pay reasonable

compensation for the services supplied under the contract before

the cancellation.

No imposition of additional duty or liability on consumer

8.—(1) The supplier shall not by a term in a contract impose, directly

or indirectly, any additional duty or liability on the consumer in relation

to the duties imposed by these Regulations.

(2) Where any term in a contract is inconsistent with paragraph (1),

it shall be void to the extent of such inconsistency.

Burden of proof

9. In any proceedings taken in any court between the consumer and

a supplier where a dispute arises as to whether —

(a) the consumer information notice has been brought to the

attention of the consumer in accordance with regulation

4(1)(b); or

(b) the consumer information notice informed the consumer

of his right to cancel the contract under these Regulations

and that it contained the information specified in the First

Schedule, in accordance with regulation 4(6),

section 18A of the Act shall apply so that the supplier shall bear the

burden of proving that the requirement referred to in paragraph (a)

or (b), as the case may be, has been complied with.

Revocation

10. The Consumer Protection (Fair Trading) (Cancellation of

Contracts) Regulations (Rg 1) are revoked.

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Transitional provision

11.—(1) These Regulations shall not apply to any regulated contract

entered into before the coming into operation of these Regulations.

(2) In respect of the cancellation of direct sales contracts and time

share contracts entered into before 15th April 2009, the revoked

Consumer Protection (Cancellation of Contracts) Regulations shall

continue to apply as if these Regulations had not been enacted.

FIRST SCHEDULE

Regulations 4(6), (9) and 9(b)

INFORMATION REQUIRED IN

CONSUMER INFORMATION NOTICE

Part A

Supplier’s Contact Information

1. Name of supplier.

2. Supplier’s reference number, code or other details to enable the transaction

to be identified.

3. Designated person(s) to whom notice of cancellation to be given, including

at least one name and at least one address or facsimile number.

Part B

Consumer’s Right to Cancel Contract

under Consumer Protection (Fair Trading)

(Cancellation of Contracts) Regulations

1. The consumer has a right to cancel a regulated contract within 5 days

(excluding Saturdays, Sundays and public holidays) after —

(a) the day on which the consumer entered into the contract; or

(b) if the consumer information notice was not brought to the attention of

the consumer before or at the time he entered the contract, the day on

which the consumer information notice was subsequently brought to

his attention.

2. If the consumer affirms the regulated contract at any time after the expiry

of 5 days (excluding Saturdays, Sundays and public holidays) after the day on which

the regulated contract was entered into, the consumer will lose his right to cancel

the contract under the Consumer Protection (Fair Trading) (Cancellation of

Contracts) Regulations (the Regulations).

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FIRST SCHEDULE — continued

3. If, having cancelled the regulated contract, the consumer enters into a

subsequent contract (on substantially the same terms as the cancelled contract) with

the supplier at any time before the expiry of the cancellation period of the cancelled

contract, the cancellation period for the subsequent contract will expire when the

cancellation period of the cancelled contract would have expired. If, however, the

subsequent contract is itself a regulated contract, the consumer can also rely on the

cancellation period explained in paragraph 1 above if it is longer.

4. To cancel the contract under the Regulations, the consumer should give

the supplier a notice of cancellation expressed in the form set out in the Second

Schedule to the Regulations or in any other notice in writing of the consumer’s

intention to cancel the contract under the Regulations.

5. A notice of cancellation must be delivered personally to the person

designated in the consumer information notice, or left at or sent by pre-paid post

to the address designated in the consumer information notice, or sent by facsimile

transmission to the facsimile number designated in the consumer information

notice.

6. If the supplier did not designate the necessary person, address or facsimile

number in the consumer information notice, the consumer can give notice of

cancellation under the Regulations by a notice in writing left at or sent by pre-paid

post to the usual or last known address of the place of business of the supplier or

designated person (if any). If the supplier or designated person is a body corporate,

the notice can be left at or sent by pre-paid post to its registered office or principal

office.

7. If the supplier agrees to accept a notice of cancellation by any additional

means, the consumer can do so by the means so agreed.

8. A notice of cancellation sent by pre-paid post is deemed to have been

given at the time of posting, whether or not it is actually received. The consumer is

advised to send the notice by registered post to facilitate proof of posting.

9. The consumer may have other rights to cancel the contract apart from the

Regulations. Cancellation under the Regulations does not prejudice those other

rights.

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SECOND SCHEDULE

Regulation 4(7)

NOTICE OF CANCELLATION

under the Consumer Protection (Fair Trading)

(Cancellation of Contracts) Regulations

Supplier: (Insert name of supplier)

Reference: (Insert supplier’s reference number, code or other details to enable the

transaction to be identified.)

I hereby give notice that I wish to cancel my contract referred to above under the

Consumer Protection (Fair Trading) (Cancellation of Contracts) Regulations.

Signature:

Date:

Name:

Address:

Telephone No.(optional):

Fax (optional):

E-mail (optional):

Made this 13th day of February 2009.

PETER ONG

Permanent Secretary,

Ministry of Trade and Industry,

Singapore.

[MTI/121/14-1-5 PT2 V2; AG/LRRD/15/2001/14]

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