Fire Safety & Prevention (SG) Ordered to Cease Unfair Trade Practices

The State Courts have, on the application of the Competition and Consumer Commission of Singapore (“CCCS”), declared that Kelvin Tan Yaosheng (“Kelvin Tan”), a sole-proprietor trading under the business name “Fire Safety & Prevention (SG)” (“FSPSG”), has engaged in unfair trade practices under the Consumer Protection (Fair Trading) Act (the “CPFTA”) involving the supply of fire extinguishers.

CCCS’s investigations revealed that either Kelvin Tan or his ex-employees, Adrian Tan Wei Liang (“Adrian Tan”), Chai Ri Jou (“Zack Chai”) or Alex Neo Boon Chong (“Alex Neo”), had, in the course of selling fire extinguishers to consumers, engaged in the following unfair practices under the CPFTA:

1. Represented that FSPSG was affiliated with or approved by the Government, the Singapore Civil Defense Force or various Community Centers to sell fire extinguishers, when it was not.
2. Represented to consumers that there was a new law or regulation requiring each household to own a fire extinguisher by a certain date, when there was no such law or regulation.
3. Represented that Passion or NTUC cardholders, members of the Pioneer Generation or Singaporeans were entitled to a discount on the purchase of fire extinguishers sold by FSPSG when no such discount existed.
4. Initially quoted consumers a price of $17.90 for a fire extinguisher and subsequently charged a higher amount of $179 for the same fire extinguisher.
5. Represented that the fire extinguishers sold by FSPSG were non-refundable when, in fact, consumers have the right to cancel the purchase of such fire extinguishers and obtain a refund pursuant to the Consumer Protection (Fair Trading) (Cancellation of Contracts) Regulations 2009.
6. Represented that customers would enjoy yearly free replacements or servicing of fire extinguishers purchased from FSPSG when, in fact, a replacement would only be provided if the relevant fire extinguisher had certain defects or was used under certain circumstances.

Consequently, CCCS commenced legal proceedings before the State Courts and the following court orders were made:

1. Kelvin Tan trading as FSPSG was declared to have engaged in the unfair practices referred to in paragraph 2 above and was to stop engaging in any of these unfair practices and any unfair practices under the CPFTA.
2. Adrian Tan, Zack Chai and Alex Neo were to stop abetting or aiding FSPSG to engage in any of the unfair practices referred to in paragraph 2 above and any unfair practices under the CPFTA.
3. Each of these individuals must, over the next two years from the date of the court order, notify CCCS if there are any changes relating to the status of their employment, directorship, partnership, and ownership of a business.

To see the official CCCS article, click the link here. You may also download the infographic of the Unfair Trade Practices Case by the FSPSG here.

For more information on the CCCS, please visit the official website at www.cccs.gov.sg.