Legal Framework for E-commerce and Online Sale Transactions

The following question stood in the name of Mr Gan Thiam Poh –

To ask the Minister for Trade and Industry whether the Government has plans to further enhance the legal framework and regulation of e-commerce and online sales (local and overseas) to better protect the interest of consumers.

The Minister of State for Trade and Industry (Mr Teo Ser Luck) (for the Minister for Trade and Industry): Singapore's consumer protection laws cover both purchases made in physical stores and on online platforms. Consumers are protected under the Lemon Law, which took effect in September 2012. The Lemon Law does not distinguish between local and foreign online retailers, and applies if the transaction stipulates Singapore law as the governing law or if the transaction is concluded in Singapore. However, the Lemon Law covers only the purchase of physical goods and not virtual goods or services.

Under the Lemon Law, when the product purchased by the consumer turns out to be defective, he may pursue two stages of recourse. Consumers can first ask the seller to repair or replace the product within a reasonable period of time and without significant inconvenience to the consumer. If the seller is unable to do so, consumers can request for a reduction in price or a full refund. We will continue to monitor the effectiveness of the Lemon Law and review the regulatory framework if necessary.

MTI will continue to work with the Consumers Association of Singapore (CASE) to strengthen consumer education and encourage consumers to make informed choices when making online purchases. Consumers who come across unfair trading practices of online retailers can report them to CASE.