Consumer Protection (Fair Trading) Act

Financial products are now governed by the Consumer Protection (Fair Trading) Act.

More details here:
http://app.mti.gov.sg/default.asp?id=84

Read this FAQ:
http://app.mti.gov.sg/default.asp?id=565

1. What constitutes an unfair practice under the Act?

It is an unfair practice for a trader, in relation to a consumer transaction-

> to do or say anything, or omit to do or say anything, if as a result a consumer might reasonably be deceived or misled;

> to make a false claim;

> to take advantage of a consumer if the trader knows or ought reasonably to know that the consumer
++ is not in a position to protect his own interests; or
++ is not reasonably able to understand the character, nature, language or effect of the transaction or any matter related to the transaction; or

> to do any of the 20 unfair practices listed in the Second Schedule of the Act.

The trader should provide the consumer with all relevant and material information so as not to mislead the consumer. The consumer can then make an informed decision. Traders should review their business practices; in particular, what information they provide to consumers and how they convey information.The court, in determining whether or not a trader has engaged in an unfair practice, would consider the reasonableness of the actions of the trader. The court would also take into account, in granting remedies to the consumer, whether the consumer tried to resolve the dispute with the trader first before commencing action.

My comment: Many of the complicated financial products offered in the market will not pass this test of "fair trading".