How to handle disputes regarding online shopping discount gimmicks.

Online shopping. Photo credit: Canstockphoto

Consumers are increasingly shopping on-line, in the comforts of their home, on the sofa or bed and using their laptops or iPads rather than making a trip down to the mall. This is particularly so given the discounts being offered when you shop online.

However it is virtually (pun unintended) impossible to inspect your purchase at the point of transaction. What can you do if the purchase eventually turns out to be defective or not in conformity with the description given?

Consumer Protection in Singapore – the ‘Lemon Law’

The existing law in Singapore has been beefed up with the amendment to the Consumer Protection (Fair Trading) Act, thereby introducing additional consumer rights (the “Lemon Law”) to afford consumers greater protection. These rights may come in handy where the goods purchased do not come with a warranty or have a limited warranty. 

For starters, there is a presumption in most circumstances that purchases which turn out to be defective within 6 months of the purchase, or did not conform to certain specifications right from the outset, are presumed to have been so at the point of purchase. This obviates the requirement for you, as a consumer, to go to great lengths to prove that your purchase turned out to be defective, say, two weeks after you bought it.

In the event, the merchant will be required to repair or replace the goods. However, the cost of returning the goods to the merchant will be in issue. While some online merchants may offer a return or exchange policy, the cost of such return is usually expressed to be borne by you.

If the merchant is non-local, the costs of such returns or exchange may negate any perceived savings from the original purchase. Hence it is advisable to look out for merchants with convenient collection/ service points within Singapore.

So What Avenues of Redress are Available?

In most instances, your online purchase will involve product values that do not merit engaging lawyers in Singapore with a view to instituting legal proceedings against the merchant.

You may still choose to seek redress through filing a claim at the Small Claims Tribunals. The Small Claims Tribunals have jurisdiction to adjudicate claims that do not exceed S$10,000.00 though the monetary limit may be increased to not more than S$20,000.00 with parties’ consent in certain situations.

Bear in mind though, that you cannot and will not be represented by an advocate or solicitor, or an agent (paid or otherwise), should you file a claim at the Small Claims Tribunals; you will be representing yourself in person.

In cases where the merchant has no presence in Singapore, pursuing legal action against such a merchant may ultimately prove futile, leaving you with little or no recourse.

Ultimately, you should always keep in mind the potential service issues associated with purchasing discounted products on-line, which are in addition to not being able to discern the quality and feel of the product at the time of purchase.

Caveat emptor; buyer beware!

Contributed by: Nicholas Ong

Nicholas Ong is an Advocate and Solicitor at Ascentsia Law Corporation. His primary area of practice is in civil and commercial dispute resolution.Feel free to contact him if any dispute should arise between you and your local retailer.