PROMOTING COMPETITION PROTECTING CONSUMERS
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The Competition and Consumer Commission of Singapore (“CCCS”) administers and enforces the Competition Act (Chapter 50B) which prohibits anti-competitive practices as well as the Consumer Protection (Fair Trading) Act (Chapter 52A) or CPFTA which protects consumers against unfair trade practices in Singapore. CCCS also represents Singapore on competition matters and consumer protection matters in the international arena. In addition, CCCS has a statutory duty to advise the government or other public authorities on national needs and policies in respect of competition and consumer protection matters. The functions of CCCS are supported by seven divisions, which include: (1) Business & Economics, (2) Consumer Protection, (3) Corporate Affairs, (4) Enforcement, (5) International, Communications & Planning; (6) Legal, and (7) Policy & Markets. MISSION Making markets work well to create opportunities and choices for businesses and consumers in Singapore. ABOUT VISION VALUES A vibrant Integrity, economy with Professionalism, well-functioning Passion, Teamwork. and innovative markets. THEME “Promoting Competition, Protecting Consumers” reflects CCCS’s dual roles. The city skyline, which mirrors that of Singapore’s, symbolises CCCS’s role of “promoting competition”, while the umbrella signifies “protecting consumers”. The barcode design further highlights the dawn of the new digital economy as well as the organisation’s efforts to promote competition and protect consumers in this context.
04 CHAIRMAN’S MESSAGE 06 CHIEF EXECUTIVE’S MESSAGE 08 10 COMMISSION MEMBERS SENIOR MANAGEMENT 11 CCCS ORGANISATION 12 STRUCTURE CORPORATE CONTENTS GOVERNANCE 13 OVERVIEW OF COMPLETED CASES 14 ENFORCEMENT 30 OUTREACH & ADVOCACY 38 INTERNATIONAL ENGAGEMENTS
ANNUAL REPORT 2019 • 2020 CHAIRMAN’S MESSAGE In FY2019, CCCS continued on its mission of making markets work well for businesses and consumers in Singapore. CCCS had a significant year in relation to our enforcement PROMOTING COMPETITION, PROTECTING work as we made headway CONSUMERS CCCS continued its rigorous enforcement against anti- in enforcing the Consumer competitive conduct. Bid rigging is one of the most harmful Protection (Fair Trading) Act types of anti-competitive conduct. It distorts the competitive (CPFTA) to protect consumers bidding process and prevents businesses from getting the best value for their tenders. The two noteworthy decisions against unfair practices. over the year were in respect of quotations for Wildlife CCCS also continued Reserves Singapore, and collusion by three companies rigorous enforcement against involved in maintaining swimming pools and water features. anticompetitive conduct.” CCCS monitored key developments in the digital economy to understand how e-commerce platforms potentially Mr Aubeck Kam impact markets, businesses, and consumers in Singapore. In Tse Tsuen September 2019, CCCS released its findings from a market study on the online travel booking sector in Singapore. This Chairman was the first market study that examined both competition and consumer protection issues since CCCS took on the role of consumer protection in 2018. The study identified four common practices of online booking providers that give rise to consumer protection concerns. CCCS also set out its recommendations to encourage these providers to adopt transparent pricing practices. Following the study, CCCS developed a set of guidelines on price transparency to help suppliers avoid misleading consumers and infringing the Consumer Protection (Fair Trading) Act (“CPFTA”) in both online and offline transactions. CCCS has sought public feedback on the proposed guidelines and will be finalising them in 2020. Our work in consumer protection saw CCCS taking on persistently errant retailers, and Court orders were separately issued against a car retailer and an e-commerce retailer. Following CCCS’s investigation, two beauty parlours signed an undertaking to cease unfair practices that misled consumers. 4 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 STRENGTHENING PARTNERSHIPS dedicated management team and staff at CCCS. We welcomed our first Memorandum of I am also grateful for the continuous support of Understanding (“MoU”) with the Competition our partners and stakeholders. Bureau Canada which covers both competition and consumer protection. The MoU formalised I would like to take this opportunity to thank and reinforced the existing cooperation and Mr Toh Han Li, who completed his tenure in technical assistance activities between the October 2019, for his valuable contributions two agencies. to CCCS. Mr Toh had been at CCCS for over a decade and as its Chief Executive for the last six CCCS continues to play an active role as one years. CCCS, under the leadership of Mr Toh, of the founding members of the International achieved many “firsts”, including the issuance Competition Network (“ICN”) Framework on of its first international cartel infringement Competition Agency Procedures (“CAP”). decision in 2014 and the issuance of directions in an anti-competitive merger between two ride- Since broadening our mandate to include hailing firms in 2018. It was also under Mr Toh’s consumer protection enforcement, CCCS leadership that CCCS took on the consumer has actively participated in both international protection function, which is complementary to and regional platforms, such as the ASEAN its mandate of promoting competition. I wish Consumer Committee on Consumer Protection him all the best in his future endeavours. (ACCP) meetings and the International Consumer Protection Network’s (“ICPEN”) I would also like to thank Ms Aileen Chia and annual conferences and best practices workshop. Mr Andrew Khoo, who have stepped down from the Board, after many years of valuable We are committed to working together contribution. At the same time, I would like with researchers and academics to examine to welcome Ms Loo Siew Yee, who has been developments and challenges on competition appointed with effect from 1 January 2020. policy and law in the region. CCCS signed a two- year MOU with the Asian Law and Economics Finally, a warm welcome to Ms Sia Aik Kor Association (AsLEA) in June 2019 to co-sponsor who has taken over the helm as CCCS’s Chief and act as a supporting organisation for the 2019 Executive with effect from 1 October 2019. Ms and 2020 AsLEA Annual Conferences to further Sia is one of CCCS’s pioneers, and was its first encourage research on competition issues. Director (Legal & Enforcement) from 2005 to 2010. Ms Sia oversaw the issuance of the first infringement decision against a cartel in 2009, IN APPRECIATION and put in place competition guidelines during I thank my fellow commission members for the formative years of CCCS. I am confident their invaluable commitment in guiding CCCS she will bring CCCS to new heights with her in its decisions and applaud the efforts of our expertise and experience. 5 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 CHIEF EXECUTIVE’S MESSAGE As we continue to I took over the role of Chief Executive in October 2019. Having served previously as Director (Legal & Enforcement) promote competition when then Competition Commission of Singapore was first and protect consumers set up, I am deeply honoured to have the opportunity to in Singapore, I am return and lead the commission, which has now expanded its mandate to include consumer protection. grateful for your support and look forward to contributing ENFORCING THE CONSUMER PROTECTION (FAIR to CCCS’s continued TRADING) ACT FY2019 marks the second year that we have taken on the success.” consumer protection role. CCCS handled our first cases involving consumer protection, as we took steps to enforce Ms Sia Aik Kor the Consumer Protection (Fair Trading) Act (“CPFTA”). We applied and obtained Court Orders in two cases – the Chief Executive first against car retailer “SG Vehicles” to cease unfair trade practices over misrepresentations on the terms and conditions of its sales agreements and the second against an online shoe retailer “Fashion Interactive” to stop it from engaging in an unfair trade practice known as a “subscription trap”. Undertakings were secured from “Charcoal Thai 1” (a food and beverage outlet) to end the unfair trade practice of making misleading representations on the discount period in its promotional materials, as well as from “Wishing Well” and “Ruby Beauty” (which has since changed its name to “Sun Beauty”) to cease their unfair practices of using deceptive or misleading methods to entice customers to sign up for packages. The motoring and beauty industries have consistently been ranked among the top three industries with the highest number of complaints received by the Consumers Association of Singapore in 2018 and 2019. CCCS is closely monitoring these industries and will take action against errant retailers for unfair practices under the CPFTA. 6 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 CONTINUED ENFORCEMENT OF THE organised an essay competition, to educate the COMPETITION ACT public on various consumer topics such as safe On the competition front, CCCS continued online transactions, pre-payment protection, its rigorous enforcement of the Competition and common sales tactics. Act. In this regard, CCCS issued two proposed infringement decisions against bid rigging Beyond businesses and consumers, CCCS conduct. CCCS also obtained voluntary encourages government agencies to seek commitments from two lift suppliers to sell lift advice on the likely impact of their policies spare parts for maintenance of lifts in public and initiatives on competition, as well as to housing estates to third-party contractors explore alternative options which can reduce on a fair, reasonable, and non-discrimination any adverse impact to competition. In FY2019, basis, bringing about potential cost savings CCCS issued 26 competition advisories, for Town Councils. In addition, CCCS reviewed including one to the Building and Construction 5 merger and acquisitions, which spanned Authority (“BCA”) on the recognition of sectors including healthcare, food, waste accreditation schemes for managing agents, management, logistics, and shipbuilding. One as well as an advisory to the Ministry of Health of the cases involved an in-depth phase 2 (“MOH”) on its initiative to extend subsidies for review, and pertained to an acquisition involving vaccinations to the Community Health Assist clinical laboratories which were considered Scheme General Practitioners. Besides providing close competitors before the transaction. advisories to government agencies, CCCS CCCS cleared the merger after accepting regularly conducts outreach activities targeted commitments by the parties that included at government agencies and their officers commitments on non-exclusivity and price. to raise awareness on competition matters. For example, CCCS organised a Community of Practice for Competition and Economic REACHING OUT TO OUR STAKEHOLDERS Regulations (“COPCOMER”) Regulators Tea, on CCCS continues to invest heavily in our outreach the topic “Digital Platforms – Interplay between and advocacy efforts to ensure stakeholders Competition, Consumer Protection and Data are well educated on the law, with the aim of Privacy”. Further, CCCS collaborated with the discouraging anti-competitive and unfair trade Personal Data Protection Commission (“PDPC”) practices from occurring in the first place. CCCS on a joint initiative on data portability. This continues to regularly engage businesses, resulted in the provision of inputs by CCCS to trade associations and chambers to help them PDPC’s proposal to introduce a data portability understand how to benefit from competition obligation in Singapore. CCCS also provided law, as well as encourage compliance as part of inputs to the second edition of the Model good corporate governance. In FY2019, CCCS Artificial Intelligence Governance Framework participated in over 30 outreach sessions. developed by PDPC. To build awareness on consumer protection As we continue to promote competition issues, CCCS participated in a series of publicity and protect consumers in Singapore, I am events including roadshows, consumer fairs, grateful for your support and look forward to bilingual radio talk shows, TV interviews, and contributing to CCCS’s continued success. 7 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 COMMISSION MEMBERS Chairman Mr Aubeck Member Kam Ms Sia Member Permanent Secretary Aik Kor Dr Andrew Ministry of Manpower Ex-officio Member of Human Khoo Cheng Member Resource Committee with effect from Hoe Member Mr Toh 1 Oct 2019 until 30 Sept 2019 Ms Aileen Han Li Chief Executive Former Deputy Chia Ex-officio Competition Managing Director Chairman of Human Member of Human and Consumer (Corporate Resource Committee Resource Committee Commission of Development) until 31 Dec 2019 until 30 Sept 2019 Singapore Monetary Authority of Singapore Deputy Chief Chief Executive Executive (Policy, Member Competition Regulation & Prof Wong and Consumer Competition Commission of Development) / Poh Kam Singapore Director-General Member of Audit (Telecoms & Post) Committee with effect from Infocomm Media 1 Jan 2020 Development Authority Professor (Strategy & Policy) School of Business National University of Singapore 8 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 COMMISSION MEMBERS Member Prof Euston Member Quah Mr Kwek Member Member of Audit Committee Mean Luck Ms Cindy Chairman of Human with effect from 1 Jan 2020 Resource Committee Khoo Seow Professor and Member Solicitor-General Chyng Member Head, Division of Mr Kan Yut Attorney-General’s Chambers with effect from 1 Apr 2019 Dr Faizal Economics Nanyang Keong, Director, Bin Yahya Technological University Benjamin Strategic Planning with effect from 1 Apr 2019 Chairman of Audit Strategic Group Committee Prime Minister’s Senior Research with effect from Office Fellow Member 1 Jan 2020 Institute of Policy Retired Accountant Studies, National Ms Loo Pricewaterhouse University of Singapore Siew Yee Coopers with effect from 1 Jan 2020 Assistant Managing Director Policy, Payments & Financial Crime Monetary Authority of Singapore 9 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 Mr Toh Han Li Chief Ms Sia Executive until 30 Sept Aik Kor Ms Ng 2019 Chief Ee Kia Executive with effect from Mr Lee Assistant Chief 1 Oct 2019 Cheow Han Executive (Policy, Assistant Chief Business & Executive (Legal, Economics) Ms Winnie Enforcement Ching & Consumer Director Protection) (Legal) SENIOR MANAGEMENT Mr Teo Wee Guan Senior Director (International, Communications & Planning) Mr Herbert Fung Mr Tan Senior Director Hi Lin (Business & Director (Policy Mr Goh Economics) & Markets) Aik Hon Director (Corporate Affairs) Mr Jack Teng Director (Consumer Protection) 10 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 CCCS ORGANISATION STRUCTURE Director Legal Assistant Chief Director Executive Enforcement Legal, Enforcement & Consumer Director Protection Consumer Protection Senior Principal Legal Counsel Director Corporate Affairs CHAIRMAN AND Chief COMMISSION Executive MEMBERS CCCS Senior Director International, Communications & Planning Senior Director Business & Assistant Chief Economics Executive Policy, Business & Director Economics Policy & Markets Senior Principal Economist 11 Competition And Consumer Commission Of Singapore
ANNUAL REPORT 2019 • 2020 CORPORATE GOVERNANCE CHAIRMAN & COMMISSION MEMBERS BUSINESS & ETHICAL CONDUCT The Commission oversees the core work of All CCCS officers are subject to the provisions CCCS. It comprises the Chairman and eight of the Official Secrets Act, the Statutory Bodies Commission Members. Appointed by the and Government Companies (Protection of Minister for Trade and Industry, the Chairman Secrecy) Act and the Public Sector (Governance) and the Commission Members bring with them Act 2018. In addition, the Competition Act their expertise in legal, economic and financial contains provisions governing the disclosure of domains from public and private sectors. information by CCCS officers. CCCS officers are The non-executive Commission Members are also bound by CCCS’s Code of Conduct and are remunerated based on Public Service Division obliged to adhere to internal policies to avoid (“PSD”) guidelines. conflicts of interest. HUMAN RESOURCE (“HR”) COMMITTEE AUDIT COMMITTEE The HR Committee was set up in August 2007 The Audit Committee is chaired by Mr Kan Yut and is currently chaired by Mr Kwek Mean Luck Keong (with effect from 5 November 2019) with (with effect from 2 January 2020) with Ms Cindy Prof Euston Quah and Prof Wong Poh Kam as Khoo and Ms Sia Aik Kor (with effect from 1 its members. Previously, the Committee was October 2019) as its members. Previously, the chaired by Dr Andrew Khoo (until 30 September Committee consisted of Ms Chia Aileen as its 2019) with Mr Kan Yut Keong and Prof Quah as Chairman (until 31 December 2019) with Mr its members. The purpose of the Committee Toh Han Li (until 30 September 2019) and Ms is to assist the Commission in areas relating Cindy Khoo as its members. The purpose of the to audit, finance and accounting, regulatory Committee is to advise the Commission with compliance, and risk management. In addition, regard to the formulation and implementation the Committee reviews the audited annual of HR policies in order to uphold a high standard financial statements and the adequacy of of corporate governance within CCCS, and CCCS’s internal controls with the management, promote the organisation as an employer of external auditors and internal auditors. choice. The Committee also oversees staff performance appraisals and decides on internal EXTERNAL AUDIT FUNCTIONS disclosure and staff disciplinary cases. KPMG LLP was appointed by the Minister for Trade and Industry in consultation with the Auditor-General to audit the accounts of CCCS for FY2019. The audited accounts were duly approved by the Commission and the Minister for Trade and Industry, with the Auditor-General kept informed of the audited accounts. 12 Competition And Consumer Commission Of Singapore
OVERVIEW ANNUAL REPORT 2019 • 2020 OF COMPLETED CASES STATUS AS AT 31 MARCH 2020 SINCE CCCS COMPETITION FY 2017 FY 2018 FY 2019 STARTED (1 JANUARY 2005) PRELIMINARY ENQUIRIES 8 7 8 136 INVESTIGATIONS (EXCLUDING LENIENCY) 2 3 4 48 LENIENCY 2 2 4 28 NOTIFICATIONS* 5 15 5 120 PRE-NOTIFICATION DISCUSSION 0 3 2 17 APPEALS 1 0 0 10 COMPETITION ADVISORIES 34 20 26 212 MARKET STUDIES 2 2 2 26 TOTAL (EXCLUDING COMPLAINTS) 54 52 51 597 * Notifications include Notifications for Guidance and Decision, Merger Notifications Phase 1, and Merger Notifications Phase 2. CONSUMER PROTECTION NUMBER OF COMPLAINTS/ 652 QUERIES HANDLED PRELIMINARY ENQUIRIES Since 9 December 2016 37 FY 2018 13 FY 2019 24 329 237 INVESTIGATIONS Since 9 December 2016 12 152 210 FY 2018 0 FY 2019 11 FY15 FY16 FY17 FY18 FY19 1 COMPLETED ADMINISTRATIVE PROFESSIONAL 5 INVESTIGATIONS AND SUPPORT SERVICES SERVICES 1 (EXCLUDING 2 LENIENCY) BY INDUSTRY (FY17-FY19) MANUFACTURING TRANSPORT 13 Competition And Consumer Commission Of Singapore
ENFORCEMENT CCCS enforces competition and consumer protection laws to ensure businesses compete on a level playing field and to protect the interests of consumers.
INVESTIGATIONS ANNUAL REPORT 2019 • 2020 19 April 2019 | SATURDAY, APRIL 20, 2019 | THE STRAITS TIMES | HOME SG VEHICLES CEASES UNFAIR TRADE PRACTICES The SG Vehicles group of companies (“SG Vehicles”) was first placed under the Consumers Association of Singapore’s (“CASE”) Company Alert list in December 2015 and again, in July 2017, due to rising consumer complaints against them despite efforts by CASE to resolve these complaints through The Consumers Association of Singapore asked SG Vehicles to sign a voluntary compliance agreement in July 2017, but it refused. The Competition and Consumer Commission of Singapore filed an injunction later that year. ST FILE PHOTO negotiation and mediation. Court orders car FINDINGS Between January 2015 and November 2017, CASE received importer to stop a total of 92 complaints against SG Vehicles. The complaints cited misrepresentations on the terms and conditions of the unfair trade practices sale agreement, particularly in relation to the delivery dates of motor vehicles and bidding for Certificates of Entitlement This follows application for injunction by following: • Engaging in unfair practices under the Consumer Protection competition watchdog that was filed in 2017 (“COE”). In several cases, consumers were also required to (Fair Trading) Act; • Doing or saying anything that Ng Huiwen would dupe a consumer into make additional payments due to a change in circumstances believing that the purchase price or COE is fixed or guaranteed; Car importer SG Vehicles and its di- • Making any false claim to a beyond their control. rector have been ordered by the court to stop engaging in unfair consumer on the guaranteed delivery date of a motor vehicle; trade practices, after Singapore’s • And taking advantage of a competition watchdog filed an in- consumer if they know that the junction application against them consumer is not reasonably able in December 2017. to understand the character, 92 In July 2017, CASE requested for SG Vehicles to sign a The importer – which is one of the biggest players in the industry nature, language or effect of the transaction. – has already earned two black Voluntary Compliance Agreement to cease its unfair trade marks from the Consumers Associ- ation of Singapore (Case). The court order also requires SG Vehicles to install a prominent sign practices, but SG Vehicles declined to do so. Number of complaints Case received Case received 92 complaints outside its shopfront, stating the against SG Vehicles from January full text of the order for six months against SG Vehicles from January 2015 to November 2017, with the fig- from Thursday. 2015 to November 2017. ure rising despite Case’s initial ef- It should also notify the commis- forts to resolve the complaints sion of any changes related to its through negotiation and mediation. businesses or Ms Tan’s employ- CCCS’s investigation revealed evidence of unfair trade 2,335 Consumers claimed SG Vehicles ment, directorship and partner- had misrepresented the terms and ships statuses. conditions of sale agreements – SG Vehicles will not, however, be practices by SG Vehicles under the CPFTA. mainly the delivery dates of motor vehicles and the bidding for certifi- cates of entitlement (COEs). required to cease its business oper- ations, and all its existing sales Number of consumer complaints agreements made with customers Several consumers said they must be honoured. made to Case from the motoring were required to make additional In 2017, the highest number of industry in 2017. payments due to a change of cir- consumer complaints – 2,335 – ACTIONS TAKEN cumstances beyond their control. Case had asked SG Vehicles to made to Case came from the motor- ing industry. 1,829 sign a voluntary compliance agree- This figure dropped by 20 per CCCS filed an injunction application with the court on 19 ment in July 2017, but it refused to do so. cent to 1,802 last year, with the beauty industry overtaking motor- The Competition and Consumer ing. There were 1,829 complaints December 2017. A Court Order was issued which took effect Number of complaints against firms Commission of Singapore said yes- terday that under the court order, against firms in the beauty indus- try last year, a 31 per cent increase which took effect on Thursday, SG from 2017. on 18 April 2019 prohibiting SG Vehicles from engaging in the beauty industry last year, a 31 per cent increase from 2017. Vehicles and its director Juliet Tan Whye Peck are prohibited from the nghuiwen@sph.com.sg in unfair trade practices, including making false claims to Source: The Straits Times © Singapore Press Holdings Limited. consumers on the guaranteed delivery date of a motor vehicle About 25 scammed Reprinted with permission. public not to give their personal information to strangers or unveri- fied sources and not to provide in- or misleading consumers into believing that the purchase into getting loans when formation that is unnecessary when making a purchase. buying phones online People who suspect they have price or COE are guaranteed, amongst others. received an unknown sum in their account should report it immedi- ately to the bank and the police, and not make transactions with A scam that tricks people into tak- the money. ing out loans when buying a mobile The police also advised the pub- SG Vehicles was also required to install a prominent phone on e-commerce platforms has ensnared about 25 people since lic to check the track record and background of a company or seller November. before making a purchase. sign outside its shopfront(s) stating the full text In some cases, victims were duped into providing their per- “Be wary that fraud artists can ap- pear and disappear, especially on sonal information, such as NRIC e-commerce platforms, so the lack of the Order, for a period of six months from number, or SingPass or bank ac- count details, on the pretext of ap- of a complaint record is no guaran- tee of legitimacy,” said the police. the date of the Order, and to notify CCCS plying for an instalment plan pack- Those with information on FRAUD ALERT age for their phone purchase, said scams can call the police hotline the police yesterday. on 1800-255-0000 or submit the of any changes related to its businesses Be wary that fraud artists can appear and disappear, They later found a sum deposited into their bank account, with the scammers demanding that they details online at www.police. gov.sg/iwitness The public can also call the Na- - such as changes to the premises or especially on e-commerce platforms, so the lack of a pay the “loan amount” back with in- terest. tional Crime Prevention Council’s X Ah Long hotline on In other instances, victims were 1800-924-5664 for information corporate changes, amongst others. complaint record is no offered loans to buy mobile about unlicensed moneylenders. ’’ guarantee of legitimacy. phones. Some would then receive a For anti-scam advice, they can call sum in their bank account, even if the National Crime Prevention SG Vehicles will have to continue they had not agreed to the loan of- fer. They were later asked to make Council’s helpline 1800-722-6688 or go to www.scam on repayments. alert.sg to honour all existing sales THE POLICE, on advising the public to check the track record of a company. The police issued an advisory on the scam yesterday, urging the Ng Huiwen agreements they had made with their consumers. 15 Competition And Consumer Commission Of Singapore
nation Day and was hospitalised. But he still turned up at the nomina- tion centre to file his papers, and was returned unopposed. Such was INVESTIGATIONS his fighting spirit.” ANNUAL REPORT 2019 • 2020 Mr Conceicao was curious, charis- matic and always engaging – quali- 16 August 2019 ‘Limited Apply now period’ CHARCOAL THAI promotion Part-Time Di 1 RESTAURANT ran for at By 2010, 1 in increased inc CEASES UNFAIR least 2 years help these se TRADE PRACTICES Charcoal Thai 1 restaurant has been coordinating h found to be in breach of the con- CCCS started investigating Charcoal Thai 1 in 2018 when sumer protection law for promot- ing meal discounts without specify- This course h it found, as part of its ongoing market monitoring efforts, ing an end date, Singapore’s compe- that no end date to the discount period was stated on tition watchdog said. • Underst The Competition and Consumer its promotional materials published on Charcoal Thai 1’s website, social media page, in-store posters and menu. Commission of Singapore (CCCS) said in a statement yesterday that it • Promoti started investigations into Char- coal Thai 1 last year. • Preparin The promotional materials also stated that the discounts Promotional materials – pub- for meals such as lunch sets and steamboat items were lished on the eatery’s website, social media page, in-store posters and healthca either available for a “limited period only” or “Ending menu – said that discounts for lunch Soon! 50% Discount”, but they continued to be available sets and steamboat items were for a “limited period only” or would be Benefits for minimally two years from February 2016. “ending soon! 50% discount”. But the commission found that Get 5 M the items continued to be available Such claims not only mislead consumers into believing for at least another two years after pace that there was a price benefit and scarcity in the February 2016, when the promo- availability of the promotional prices, but it also provided tions first appeared. Charcoal Thai 1 had breached the We reco Charcoal Thai 1 with an unfair advantage over businesses Consumer Protection (Fair Trad- ing) Act, which states that it is un- work ex who comply with the CPFTA. fair practice for businesses to repre- sent that goods and services are Course ACTIONS TAKEN available at a discounted price for a stated period of time if they know with hea Charcoal Thai 1 has since agreed to cease the unfair or ought to know the goods and ser- practice and not engage in any other unfair practices vices are available for a substan- tially longer period. Course under the CPFTA. In particular, it has undertaken not to make any representations on discounts or promotions in CCCS said such claims not only misled consumers into believing and Per that there was a price benefit and its promotional materials or any other forms of publicity scarcity in the availability of the pro- SkillsFu without specifying the expiry date for those discounts or motional prices, but it also gave the promotions. eatery an unfair advantage over busi- nesses that complied with the Act. Charcoal Thai 1 has since agreed As Charcoal Thai 1 has taken the necessary steps to to stop the unfair practice and not engage in other similar practices. It adequately address CCCS’s concerns, CCCS has closed has also taken steps to address the the investigation. CCCS will, however, continue to monitor commission’s concerns. The consumer watchdog has Co Charcoal Thai 1’s conduct, and reserves the right to closed its investigations into the investigate any breach of the undertaking or any other case, although it added that it would continue to monitor the unfair practices by the restaurant. restaurant’s conduct. Dat CCCS said it reserves the right to investigate any breach of the un- T dertaking or any other unfair prac- tices by Charcoal Thai 1. It reminded businesses not to en- Venue: L gage in any practices that are likely 9W to mislead consumers. Source: The Straits Times © Singapore Press Holdings Ng Huiwen Limited. Reprinted with permission. 16 Competition And Consumer Commission Of Singapore
INVESTIGATIONS ANNUAL REPORT 2019 • 2020 17 January 2020 E-Commerce Retailer Fashion CLICK Interactive Ordered to ME! CEASE UNFAIR TRADE WWW.XXXXXXXXXX PRACTICES AND STOP 60% 60% 60% USING “SUBSCRIPTION TRAPS” Fashion Interactive Pte. Ltd. The Consumers Association of subscription was required in order (“Fashion Interactive”) and its Singapore (“CASE”) had earlier to purchase shoes at the advertised director, Mr Magaud Olivier intervened to help affected price. Hence, consumers were Georges Albert (“Mr Magaud”) consumers obtain refunds for misled into believing that they were were issued an order by the the charges made by Fashion consenting to a one-off purchase. State Courts to cease unfair Interactive to their credit and/ trade practices which had misled or debit cards. However, new Through a Court Order which consumers into signing up for a complaints were lodged regarding took effect from 6 January 2020, recurring membership subscription Fashion Interactive automatically Fashion Interactive is prohibited on its website myglamorous.sg. charging consumers recurring from misleading consumers into monthly membership fees without signing up and/or continuing with ACTIONS TAKEN their knowledge or consent. CASE a subscription service requiring On 28 November 2019, CCCS later issued a Consumer Advisory payment or recurring payment. applied for an injunction against highlighting the complaints against Mr Magaud is also prohibited Fashion Interactive and Mr Magaud Fashion Interactive in January 2019. from abetting the retailer, Fashion to stop them from engaging in an Interactive, in misleading customers unfair trade practice known as a Following a referral from CASE, into doing the same. Under the “subscription trap”. CCCS investigated and affirmed Court Order, Fashion Interactive that Fashion Interactive had must abide by the following for A “subscription trap” not sufficiently disclosed key three years: misleads consumers information to consumers. Mr into signing up for a Magaud had directed the design of • Display the details of the the advertisements and website to declaration and injunction on the recurring subscription focus on the discounts and shoes landing page of its website; by giving the impression for sale, instead of the membership • Notify customers of the that it is a one-off subscription and its recurring declaration and injunction before purchase of goods and/ monthly fees. Moreover, throughout entering into a contract; and or services. If consumers the purchase process, no notice was • Include in every invoice or receipt do not cancel such provided to consumers informing that a declaration and injunction subscriptions, typically them that the membership has been granted against it. within a grace period, they would be liable for recurring charges. The use of “subscription WHAT Retailers should provide clear and accurate information on the price of goods and services in their traps” contravenes the SHOULD advertisements. Key terms and conditions should be Consumer Protection (Fair RETAILERS prominent, accessible and easy to read. Trading) Act (“CPFTA”). DO? 17 Competition And Consumer Commission Of Singapore
INVESTIGATIONS ANNUAL REPORT 2019 • 2020 21 January 2020 Proposed Infringement Decision AGAINST CONTRACTORS FOR BID RIGGING OF QUOTATIONS FOR WILDLIFE RESERVES SINGAPORE On 21 January 2020, CCCS issued a Proposed Infringement Decision (“PID”) against three companies for infringing section 34 of the Competition Act: Shin Yong Construction Pte. Ltd., Geoscapes Pte. Ltd. and Hong Power Engineering Pte. Ltd. (collectively, “the “Parties”). The Parties were found to have participated in anti-competitive agreements by rigging the bids for the provision of building, construction and maintenance services under Invitations To Quote (“ITQ”) and Invitations To Tender (“ITT”) called by Wildlife Reserves Singapore (“WRS”). CCCS commenced its investigation into allegations of bid rigging of civil and electrical works for WRS’s attractions, following a complaint from WRS in April 2016. The investigation revealed that the Parties had exchanged bid information and coordinated their bids for tenders and quotations called by WRS. This was done to create the false impression that independent competitive bids were submitted for the tenders. 18 Competition And Consumer Commission Of Singapore
INVESTIGATIONS ANNUAL REPORT 2019 • 2020 31 March 2020 Proposed Infringement Decision AGAINST THREE WATER FEATURE MAINTENANCE COMPANIES FOR BID RIGGING OF TENDERS On 31 March 2020, CCCS issued CCCS commenced its investigation a Proposed Infringement Decision in September 2017 which revealed CU Water (“PID”) against three companies the presence of agreements and/ Services Pte. Ltd. for infringing section 34 of the or concerted practices on bid Competition Act: CU Water Services rigging of tenders involving (i) Proposed Pte. Ltd. (“CU Water”), Crystalene CU Water and Crystalene, and Infringement Product (S) Pte. Ltd. (“Crystalene”) separately between (ii) CU Water Decision Crystalene Product and Crystal Clear Contractor Pte. and Crystal Clear. (S) Pte. Ltd. Ltd. (“Crystal Clear”) (collectively, “the “Parties”). The companies With cover bidding arrangements provided maintenance and cleaning between the Parties in tenders, services for swimming pools, there was no competitive pressure Crystal Clear spas, fountains and other water on the Parties to submit their best Contractor Pte. Ltd. features. The Parties rigged their offers to customers. As a result, bids in tenders for the provision of customers were unable to obtain maintenance services for swimming best value offers that meet pools, spas, fountains and other their needs. water features to privately-owned developments, including but not limited to condominiums and hotels in Singapore. 19 Competition And Consumer Commission Of Singapore
INVESTIGATIONS ANNUAL REPORT 2019 • 2020 31 March 2020 WISHING WELL BEAUTY CENTRE AND RUBY BEAUTY PTE LTD CEASE UNFAIR TRADE PRACTICES HOME B4 In 2019, CCCS initiated investigations into two beauty dollars - considerably higher than the originally quoted prices to 2 beauty parlours – Wishing Well Beauty Centre (“Wishing Well”) and Ruby the consumer when they were approached earlier by the staff on parlours told Beauty Pte Ltd. (“Ruby Beauty”). the street. Consumers were also led to believe that the packages they to stop unfair FINDINGS Investigations revealed that purchased were transferable with an unlimited validity period, but the trading ways the employees of both beauty printed invoices and appointment National taekwondo athlete Chelse was born with a hole in her heart, h cards stated otherwise. They were found to have misled customers parlours would loiter in the vicinity into paying for services they did not agree to chosen as a role model by global b of Bencoolen Street to entice Jean Iau or take advantage of consumers if the supplier knows that the con- Millennials consumers with a one-time offer of ACTIONS TAKEN Wishing Well Beauty Centre and sumers are not in a position to pro- tect their own interests, or not able Ruby Beauty have breached con- to understand the transaction or Goh Yan Han a discounted facial treatment at $38 Wishing Well and Ruby Beauty sumer protection laws by mislead- ing customers into paying for ser- any matter related to it. It found that Wishing Well and vices they did not agree to. Ruby Beauty had engaged in unfair To be chosen as a role model by and/or mole or skin growth removal (which has since changed its name In a statement yesterday, Compe- tition and Consumer Commission trading practices of charging a price for goods or services that is global brand which had earlie recognised notable women suc service at $5 per removal. to “Sun Beauty”) have since signed of Singapore (CCCS) said that both beauty parlours in Bencoolen Street have signed an agreement to substantially higher than the esti- mate provided, and misleading con- sumers into thinking that the trans- as tennis player Naomi Osaka wa a surprise for Ms Chelsea Ann Sim 24. an undertaking to cease the unfair stop such unfair trading practices. The employees of the parlours actions gave them certain rights. The parlours omitted telling con- Last month, the taekwondo ath lete was one of three national ath would loiter in the Bencoolen sumers material facts, used small letes here selected as role mode When a persuaded consumer practices and not to engage in any Street area to sell consumers one- time offers of discounted facial print in their brochures and in- sisted on payment for goods and ser- by American company Mattel a part of the Barbie Olympic Game treatment and beauty services. vices the consumers did not ask for. Tokyo 2020 Doll Assortmen arrived in the beauty parlour for other unfair practices under the After the customers agreed, the staff would instead perform other Wishing Well Beauty Centre hung up the phone when The launch. Ms Sim, 24, who was featured services such as removing moles or Straits Times called yesterday. The Straits Times’ Generation Gr the service, the staff would not CPFTA. Both beauty parlours have skin growths, or a more expensive facial treatment so as to charge a ST has also reached out to Ruby Beauty for comment. series in March last year, was bor with a hole in her heart. provide the service agreed upon undertaken not to use any other higher fee. By the end of the treatment, cus- tomers would have chalked up a CCCS will continue to monitor them and to take action against any unfair practices. “I was very honoured to be s lected by Barbie. It is a once-in- lifetime opportunity to be reco earlier. Instead, they would perform deceptive or misleading methods much higher bill than initially pro- posed to them. It said that the beauty industry consistently ranked among the top nised by such a big brand, and inspire all the young athletes an The staff would then entice the three industries with the most com- be role models to them,” said M unsolicited services without the in order to entice customers to sign customers to buy a 10-session beauty package, which ranged from plaints received by Consumers As- sociation of Singapore (Case), and Sim, who is a clients and marke executive at accounting firm D a few hundred to a few thousand even took the top spot in 2018. loitte. consumer’s consent in order to up for packages that the customers dollars, which the consumer did not know of or agree to when ap- CCCS is also closely monitoring other businesses in the beauty in- She had been training hard fo the world taekwondo champ proached initially. dustry and reminded them not to onships that was to be held in Den charge a higher price. The staff would not otherwise have agreed They were also falsely told they could transfer these packages to engage in any unfair practices that mislead consumers. mark in May, but has now bee cancelled because of the coron would also avoid revealing the to, in lieu of payment for unsolicited others, and that the packages were valid for an unlimited period, when the printed invoices and appoint- Consumers who come across un- fair practices can call Case on 6100-0315, or go to the Case web- avirus outbreak. Another millennial of Gener tion Grit is Mr Jeremy Lim, 2 price difference until after the treatments. ment cards said otherwise. CCCS said it is unfair for a sup- site. who has brittle bone disease. H was among the recipients of th plier to mislead, make a false claim jeaniau@sph.com.sg Ten Outstanding Young Person commencement of the treatment. Source: The Straits Times © Singapore Press As a result, the consumers would CCCS has closed its investigations 2 men file appeals against High Court de Holdings Limited. Reprinted with permission. have unknowingly chalked up a as both beauty parlours have taken Rei Kurohi law criminalising sex between men. day that they had filed appeals in substantial amount due to the the necessary steps to address Lawyers representing Mr John- son Ong Ming, a disc jockey, and Dr the Court of Appeal. Dr Tan’s lawyer, Mr M. Ravi of Car- unsolicited treatments and/or CCCS’s concerns. CCCS will Two men have filed appeals against Roy Tan, a lesbian, gay, bisexual son Law Chambers, is appealing a High Court decision to dismiss and transgender (LGBT) rights ac- “against the whole of the decision” their legal challenges against the tivist, told The Straits Times yester- issued by Justice See Kee Oon on services provided. continue to monitor their conduct and reserves the In lieu of full payment for the right to investigate and unsolicited treatments and/ take necessary action or services provided, the staff against any breach would pressurise the consumer of their undertaking into purchasing a 10-session or any other unfair beauty package. As a result, the practices. consumer would end up purchasing beauty packages ranging from a few hundred to a few thousand 20 Competition And Consumer Commission Of Sin
COMMITMENTS But Republic must transform its economy at faster pace to meet tech challenges, he says ANNUAL REPORT 2019 • 2020 Danson Cheong His comments come as the Singa- jing, Shanghai and Guangdong prov- TWIN CHALLENGES ship forward in the next five to 10 Deputy Prime China Correspondent pore economy feels the effects of es- ince, including Premier Li Keqiang years, he added. Minister Heng In Shenzhen calating trade tensions between and Vice-Premier Han Zheng. The main thing that Chinese leaders expressed appre- Swee Keat spoke China and the United States. He also co-chaired the Singa- Singapore’s first-quarter growth pore-Shanghai Comprehensive Co- we must do is to ciation for the bilateral cooperation that had taken place over the years, to the Singapore media in Singapore is prepared for the nega- was slower than forecast, prompt- operation Council, a bilateral busi- ensure that we he said, noting that “at every stage, Shenzhen Lift Spare Part Suppliers Provide Commitments to tive consequences of the Sino-US ing the Ministry of Trade and Indus- ness cooperation platform, and vis- we have been able to look at trade war, but it must transform its try to revise its full-year growth ited Chinese firms. transform our projects which are beneficial to yesterday as he wrapped up his economy at an “even faster pace” if forecast downwards. Mr Heng said one thing that economy at an both sides”. visit to China. it is to deal with the fallout, Deputy Since China and the US failed to struck him from his meetings with “So, I think this provides a very He said Beijing Prime Minister Heng Swee Keat reach a trade deal in Washington ear- the Chinese leaders was that they even faster pace good momentum for us to build on. was making said yesterday. lier this month, they have imposed take a long-term view, focusing on because besides the We are already at a very high level preparations for Speaking to Singapore reporters tit-for-tat tariffs on each other’s key areas and priorities. of cooperation,” Mr Heng said. its people to trade war, we are also FACILITATE LIFT MAINTENANCE IN in Shenzhen as he wrapped up his goods worth billions of dollars. “One strong characteristic of the While both countries find new ar- “stay resilient” if visit to China, Mr Heng said that Washington has also blacklisted Chi- Chinese system is that the political going to be faced with eas in which to work together, Sin- the trade war although Singapore could weather nese technology giant Huawei, re- leaders, as well as the business lead- gapore needs to take a strategic with the US the storm, the trade war was “not stricting its dealings with US firms. ers, think in the long term,” he said, very rapid changes view of future developments and escalates in technology. ’’ an issue that can be resolved imme- Asked how the Chinese leaders adding that this opens up many ar- position itself well: Its companies further. diately”, and would have a very neg- were viewing the trade war, Mr eas in which Singapore and China need to build deep capabilities, and PHOTO: MCI ative impact on both the regional Heng said they remained hopeful can cooperate and work together. it must have a strong talent pool ex- and global economies. that it could be resolved in time. Some areas that China is focused posed to developments in China HDB ESTATES “The main thing that we must do “There is a recognition that it is to on developing are the mega eco- and around the world. is to ensure that we transform our no one’s benefit... neither the US nomic zones of the Yangtze River DEPUTY PRIME MINISTER “That is the only way that we can economy at an even faster pace be- nor China, to have this trade war.” Delta and Greater Bay Area, efforts HENG SWEE KEAT add value. We must raise our capa- cause besides the trade war, we are But he added that China was mak- which Mr Heng saw first-hand in bility and continue to be valuable also going to be faced with very ing preparations for its people to Shanghai and Guangdong. and useful,” said Mr Heng, who rapid changes in technology,” he “stay resilient if the trade war esca- He said developments in these later left Shenzhen for Hong Kong, said. “This is of utmost importance, lates further”. two regions as well as in the Belt the last leg of his China visit. and we must focus our minds and Mr Heng’s eight-day visit, which and Road Initiative were areas He is scheduled to fly to Tokyo our energies on this. I hope that cor- ended yesterday, was his first to where both sides could deepen today to attend the 25th Nikkei porate leaders will take this very se- China since becoming Deputy collaboration. Conference. riously – this is also an opportunity Prime Minister earlier this month. Mr Heng also had discussions on to turn adversity into strength.” He met top Chinese leaders in Bei- how to take the bilateral relation- dansonc@sph.com.sg On 28 May 2019, CCCS concluded 2 more suppliers agree There had been claims that some lift manufacturers had refused to supply its investigations into the supply of to sell lift spare parts to vital spare parts to third-party contractors for maintenance work in HDB estates, preventing them from lift spare parts for the maintenance doing a proper job or winning new third-party contractors contracts. ST FILE PHOTO of lifts in Housing & Development Board (“HDB”) estates following Melissa Heng In a phone interview with The Straits Times, Nee Soon Town There are about 24,000 Council chairman and MP for Nee lifts of different brands the acceptance of the voluntary Two more lift parts suppliers have agreed to sell spare parts to third- party lift contractors on a “fair, Soon GRC Louis Ng said it was good that the lift parts suppliers had committed to working with installed in HDB estates across Singapore. Town commitments provided by Chevalier reasonable and non-discriminatory third-party contractors. councils can appoint the basis”, Singapore’s competition He said: “More competition watchdog said yesterday. means better options for consumers lift installers to carry out This will ensure that third-party and better service. This opens things maintenance or get a Singapore Holdings Pte. Ltd. and contractors can obtain spare parts to maintain lifts in HDB estates. Third-party contractors are typi- up for the town councils as well and gives us more options when looking for contractors.” third-party contractor. Fujitec Singapore Corporation Ltd. cally cheaper to hire than the origi- In response to questions from nal lift installers. ST, Dr Teo Ho Pin, coordinating The Competition and Consumer chairman of the People’s Action to award our lift contracts so as to ning new contracts. these... contractors may be pre- and C&W Services Operations. Commission of Singapore (CCCS) Party (PAP) town councils, also obtain value for money in our con- There are about 24,000 lifts of vented from effectively competing Once similar commitments were Both companies will undertake to said yesterday that it had accepted voluntary commitments by Cheva- lier Singapore Holdings and Fujitec welcomed the commitments from the suppliers, saying they were the correct move for fair competition. tracts,” he said. In 2016, the CCCS began investi- gating claims that some lift manu- different brands installed in HDB estates across Singapore. Town councils can appoint the lift install- for contracts to maintain and ser- vice lifts of that particular brand,” said the CCCS. made by Chevalier Singapore Holdings and Fujitec Singapore Corporation, the investigation was sell lift spare parts (with software if Singapore Corporation that fully ad- Dr Teo said PAP town councils facturers had refused to supply ers to carry out maintenance or get One lift company – EM Services – concluded. The five companies dress concerns relating to the sup- adopted a Price Quality Method vital spare parts, such as mother- a third-party contractor. made commitments in 2016, the installed more than 70 per cent of ply of their brands of lift spare parts. Tender evaluation approach when boards, to third-party contractors “If a lift company or distributor year the investigation began, that the lifts in HDB estates, said the The CCCS had previously ac- awarding lift contracts. for maintenance work in Housing does not provide proprietary but addressed the concerns raised. CCCS. applicable) of the relevant brands cepted similar commitments from three other companies. “We evaluate both the prices and performance of the lift contractors Board estates, preventing them from doing a proper job or win- essential lift spare parts to third- party lift maintenance contractors, Last year, the CCCS received com- mitments from BNF Engineering melheng@sph.com.sg to third-party contractors on a fair, Source: The Straits Times © Singapore Press Holdings Limited. Reprinted with permission. Court clears doctor who was suspended for giving inadequate medical leave reasonable and non-discriminatory basis, subject to certain terms and contracts to maintain and service Salma Khalik ganisation for Migration Econom- blood vessels from the palm of the agement. But even if his instruc- “seriously negligent”, nor did he dis- tor to the main thrust of the allega- Senior Health Correspondent ics, which alleged that he had col- hand to sustain the tissue of the fin- tions had been followed, the tri- regard the patient’s interest. tions against him.” luded with the patient’s employer. ger as it healed. bunal said it was not the practice to The court judgment, delivered It also said that while this case The Ministry of Manpower does The worker was warded for one order light duties on the second by Justice Judith Prakash, also took it as the doctor’s duty to ascer- conditions. lifts of a brand. As a result, they A doctor who was suspended for six months by a disciplinary tri- bunal for not giving a worker not require reports of work acci- dents that require fewer than three days of medical leave. night, and Dr Looi left instructions for a day’s medical leave and a week of light duties on discharge. He was post-operative day. But the Court of Three Judges said Dr Looi should not be held ac- pointed out that whether light du- ties are medically appropriate is dis- tinct from whether the patient “ac- tain that light duties were available, “that need not invariably be the way cases are pursued in the future”. It may be prevented from effectively enough time to recover after frac- On Aug 7, 2011, the tip of the mid- to review the patient the next day. countable for what the discharging tually and eventually performed added: “It is difficult to see how a doc- turing a finger has been cleared by dle right finger of Mr Vadamodulu The next morning, the safety offi- doctor did, but for what he himself such activities”. tor’s failure to ascertain the availabil- the Court of Three Judges. Tata Rao, a shipyard welder from cer from the company, Tellus had prescribed. On that, the court The court, in a concluding note, ity of light duties would result in the Both the doctor and the Singa- India in his early 30s, was crushed Oceanic Pro, visited Mr Rao and said giving light duties was a medi- said that given the way the charges giving of such light duties being con- FINDINGS competing for contracts to pore Medical Council (SMC) had appealed against the suspension, with the SMC wanting it to be in- when a steel plate fell on his right hand. He was taken to West Point Hospital, where Dr Looi performed asked for him to be discharged. The resident medical officer discharged him with two days of medical leave – cally appropriate course of action. It found that Dr Looi knew the company had systems in place that ---- were framed, it was not clear if the main charge was that the doctor had not checked if light duties were sidered ‘inadequate medical leave’.” The SMC’s appeal to have the sen- tence increased was dismissed be- maintain lifts of a particular brand creased to two years. the first of a two-stage operation for Aug 7 and 8 – with no light duties. allowed workers to perform simple available, or that the medical leave cause the court found that the doc- In 2016, CCCS started investigating The complaint against or- thopaedic surgeon Looi Kok Poh was made by the Humanitarian Or- in which the injured finger was at- tached to the skin flap at the base of the thumb. This would allow The disciplinary tribunal said Dr Looi, as the primary doctor, was re- sponsible for post-operative man- duties such as tasks in the office or guardhouse that would not jeopar- dise the injury. Thus, he was not given was not enough. It said: “Charges that are brought against a doctor must alert the doc- tor was not guilty. salma@sph.com.sg alleged refusals to supply lift spare if lift companies refuse to supply parts for the maintenance of lifts in essential spare parts of that brand. HDB estates. Over 20,000 lifts of different brands are installed in HDB OPENING UP COMPETITION estates across Singapore, where the FOR MORE OPTIONS majority is maintained by the Original In total, CCCS accepted Equipment Manufacturers (“OEMs”). commitments from five lift Town Councils can appoint OEMs companies – EM Services Pte. or a third-party contractor to carry Ltd., BNF Engineering (S) Pte. Ltd., out maintenance work. In general, C&W Services Operations Pte. there are likely to be cost savings Ltd., Chevalier Singapore Holdings when engaging a third-party lift Pte. Ltd. and Fujitec Singapore maintenance contractor for multiple Corporation Ltd. It is estimated that brands as compared to procuring lift these companies installed more maintenance services from each OEM. than 70% of the lifts in HDB estates in Singapore. Hence, the refusal to provide proprietary but essential lift spare CCCS considered the commitments parts by OEMs to third-party lift to adequately address competition maintenance contractors may concerns in relation to the supply of breach the Competition Act (Cap. different brands of lift spare parts and 50B) for abuse of a dominant has communicated the acceptance position. The inability of third-party to Town Councils. This is to ensure No entry contractors to obtain proprietary that they are better informed when but essential lift spare parts pose procuring lift maintenance services significant obstacles for them as and in reporting potential anti- they try to compete with OEMs for competitive practices. 21 Competition And Consumer Commission Of Singapore
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