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Singapore Lemon Law Benefits Both Consumers and Retailers

The Singapore Parliament has approved the “Lemon Law” in March and will take effect this September. These new changes to the Consumer Protection (Fair Trading) Act and Hire Purchase Act set clearer guidelines for consumers seeking redress for purchases that fall short in quality and performance, even being repaired repeatedly. It will also ensure that businesses get a chance to repair or replace purchased goods.

If a product is found to be defective within six (6) months of delivery, the flaw will be assumed to be inherent, unless the retailer can prove otherwise.

There is a two-stage framework for consumers seeking recourse. First, the consumer can get the retailer or company incorporate in Singapore to repair or replace the defective item. The Second stage works when the retailer or company incorporate in Singapore fails to repair or replace the product “within a reasonable time or without significant inconvenience” to the consumer. In this situation, the buyer can choose either keep the product but demand a discount, or return the product for a full refund.

This Lemon Law protects the consumers from having to deal with a defective product, but also helps retailer and companies in Singapore to maintain their reputation.

With the effect of this new law in September, it will mean that either local or foreign consumers will be assured that they can get the quality guaranteed products in Singapore. Even if the goods turn out to be defective, consumers will not need to worry too much because they know that they are protected under the Lemon Law. This assurance will also induce higher spending which benefits businesses and companies incorporated in Singapore. That is why we say the Lemon Law benefits both consumers and retailers.