The Singapore parliament has recently passed the Lemon Law. Singapore company registration specialists Rikvin is positive that the passing of the Lemon Law will not only benefit consumers and retailers but boost Singapore’s retail industry in the long run.
The Lemon Law, which will come into effect on 1 September 2012, is an improvement of the Sale of Goods Act, which contains only some provisions of the Lemon Law. The Lemon Law protects consumers against “lemons” i.e. defective products purchased in Singapore that are of unsatisfactory quality or performance standards at the time of purchase.
Brand new and “satisfactory quality” second-hand consumer goods such as clothing, electronic goods and vehicles fall under the protection of the Lemon Law. If defects are found in these products within six months of purchase, then the Court will presume that the defects have existed at the point of delivery or purchase. The Lemon Law then applies, and in turn grants the consumer a 2-stage recourse framework.
At the first stage, a consumer can request for the retailer to repair and replace defective goods. At the second stage, a consumer may request for a refund or reduction in the price of defective goods if reparation is not possible.
Rikvin is optimistic that the Lemon Law will boost Singapore’s retail industry in the long run as it caters to the needs of both consumers and businesses.
First of all, the Lemon Law gives businesses a chance to repair and replace the defective product instead of just issuing refunds.
Commenting on the merits of Law for businesses, Mr. Satish Bakhda, Head of Rikvin’s Operations, said, “More often than not, consumer goods are manufactured away from the retailing outlets. Unfortunately, customer service representatives often bear the brunt of customers’ anger when a product is defective. The Lemon Law clearly defines the boundaries and obligations that entail relationships between businesses and consumers. This in turn buffers the good name of the brand and outlet even in the case that an inexperienced employee is handling the complaint.”
Further analysis by Rikvin shows that correspondingly, consumers will be assured by the Lemon Law that Singapore fosters good retail practices and is a safe place to shop. Furthermore, as Singapore raked in almost S$4.5 billion in tourism shopping receipts last year, the passing of the Law sends a message that goods bought in Singapore are quality products.
“Global and local consumers alike will be assured that they will be paying for quality when they shop in Singapore. In the case that the goods turn out to be defective, consumers can have piece of mind that they are protected under the Lemon Law. This assurance could induce higher spending, which in turn benefits businesses and Singapore’s retail industry as a whole. We therefore anticipate more retail companies to flourish and entrepreneurs to start a Singapore company when the Law comes into effect,” added Mr. Bakhda.