Consumer complaints fall for the first time in seven years
A man walks past a shop with its shutters closed in Sim Lim Square. Unethical business tactics like those of some traders at Sim Lim Square have caused consumers to be more cautious, CASE said. TODAY file photo
SINGAPORE — The number of complaints from consumers has fallen for the first time in seven years, but grouses against the travel industry spiked last year to an all-time high.
The Consumer Association of Singapore (CASE) received 24,721 complaints last year, down 15.5 per cent from 29,254 complaints in 2013.
However, of concern is the travel industry, which drew 1,926 complaints last year, up from 1,512 in 2013.
Most complaints were about unsatisfactory service, which could be attributed to some travel agencies abruptly closing or having their licences suspended or revoked last year.
The overall decline in complaints, the consumer watchdog said, could be a result of consumers feeling more empowered to stand up for their rights without having to lodge a report with CASE, or fewer businesses engaging in unfair practices.
The widespread publicity on the sudden closure of businesses, such as Five Star Tours, as well as the unethical business tactics employed by some of the traders at Sim Lim Square have also caused consumers to be more cautious, the association said.
Of the total number of complaints received, CASE resolved 85.5 per cent of the cases last year, compared with 77.5 per cent in 2013.
CASE executive director Seah Seng Choon said the increase in the number of complaints against the travel industry is a cause for concern and suggested a review of the regulations governing travel agencies.
“The law should make it harder for operators of tour agencies that have closed or have had their licences revoked to open new companies. Consumers should also be kept informed of any travel agencies that are no longer financially viable,” he said.
Last month, Minister of State (Trade and Industry) Teo Ser Luck had said in reply to a question in Parliament that the Government will review the law so that quicker action could be taken against unfair trading practices and to prevent errant traders from sidestepping restrictions under the Consumer Protection (Fair Trading) Act by forming new companies.
On whether more regulations are in the works for the travel industry, Singapore Tourism Board director (Travel Agents and Tourist Guides) Ong Ling Lee said: “We are engaging our industry stakeholders on this and will share more details when ready.”
Travel agencies TODAY spoke to welcomed the idea of more regulations, pointing out that the barriers of entry are currently relatively low.
To get a travel agent’s licence, a company must be registered with the Accounting and Corporate Regulatory Authority and have paid-up capital of S$100,000.
A spokesperson from Chan Brothers travel agency said the Singapore Tourism Board (STB) should increase the paid-up capital to apply for a Travel Agent (TA) licence to at least
S$1 million and another S$1 million in banker’s guarantee to cover consumers should an agency close down.
Audits should also be conducted to ascertain the financial health of agencies when they apply for their licence to be renewed every two years, the spokesman said.
Agreeing to more stringent checks, SA Tours’ Eva Wu said: “A travel agency is a unique business in the sense that the money is paid before service is rendered and this model can lead to rogue businesses taking advantage of it and perhaps that is what happened to some consumers last year.”
Meanwhile, the motorcar industry remained the most grumbled about, despite a 36 per cent drop in complaints from 3,302 in 2013 to 2,112 last year. This was followed by the electrical and electronics industry, with 2,093 complaints lodged with CASE last year, down from 2,314 in 2013.
