Lemon Law In Singapore: 7 Facts All Consumers Must Know

by 4 December 2024Knowledge & Insights

lemon law singapore

No one likes the frustration of purchasing a defective product. Imagine saving up to buy that new 4K TV, only to find it doesn’t work as advertised. To make matters worse, the merchant is unresponsive and refuses to offer a refund. It’s a situation that can leave you feeling hopeless.

You may think all hope is lost, but not quite. You can use Singapore’s Lemon Law to try to get some recourse from the seller or merchant.

By understanding how the Singapore Lemon Law refund process works and what protections are available to you under this important consumer protection law, you can confidently handle such situations and seek the remedies you deserve.

What Is Lemon Law In Singapore?

Lemon Law is a consumer protection law outlined in the Consumer Protection (Fair Trading) Act (CPFTA) of Singapore.

Under Section 4, it aims to protect consumers against unfair practices when they purchase goods that do not conform to the agreed sales contract. This law allows consumers to make a lemon law claim for a defective product within 6 months of purchase.

Singapore’s Lemon Law has been in effect since 2012, but the concept of “lemons” dates back to the 1960s. Originally, the term referred to vehicles with multiple manufacturing defects that affected their safety, functionality, and value.

Today, it extends to all defective goods, including electronics, furniture, and clothing, that fail to meet satisfactory quality.

Under Singapore’s Lemon Law, it is considered an unfair practice for a supplier, in relation to a consumer transaction, to:

  • Do or say anything, or omit to do or say anything, that might reasonably deceive or mislead a consumer.
  • Make a false claim.
  • Take advantage of a consumer, especially if the supplier knows or ought reasonably to know that the consumer cannot protect their own interests or fully understand the nature of the transaction.

These provisions are designed to protect consumer interests, ensuring that they are not exploited or misled during purchases.

 

What Is A “Defective Product” Under The Lemon Law In Singapore?

What Is A Defective Product Under The Lemon Law In Singapore

According to Singapore’s Consumer Protection Fair Trading Act, a defective product is an item that does not conform to the purchasing agreement at the time of its delivery.

For instance, defective goods:

  • Do not match the advertised product description; or
  • Do not have satisfactory quality; or
  • It cannot be used for the purpose advertised and informed to the buyer before they purchase the goods

Singapore’s lemon law also applies to secondhand products. However, “satisfactory quality” depends on how old the product was when it was delivered.

For instance, a secondhand laptop is of “satisfactory quality” if its performance is similar to another secondhand laptop of the same model and specifications rather than a brand new one.

 

What Does The Lemon Law Cover?

The Lemon Law covers a wide range of general consumer products purchased in Singapore, such as apparel, electronics, furniture, and motor vehicles. This includes both new and secondhand goods, with the law taking into account the age of the product and the price paid at the time of delivery.

The Lemon Law also applies to discounted products labelled as “non-refundable” or “non-exchangeable,” meaning merchants cannot avoid their legal obligations by simply labelling goods in this way.

However, there are limits to what the Lemon Law covers. It does not apply to houses, land, rental or leased goods, or services. Additionally, the law does not cover business-to-business transactions or consumer-to-consumer transactions, such as those on platforms like Facebook Marketplace.

In essence, the Lemon Law ensures that products meet a standard of satisfactory quality and are fit for their particular purpose. If a defect existed during delivery or arose shortly after, consumers can seek redress through repair, replacement, or a refund.

 

Who Does The Lemon Law Apply To?

Who Does The Lemon Law Apply To

According to the lemon law, you must be dealing with the merchant as a consumer or a private individual. This means you’re not buying the product for your business, and the merchant is selling it as part of their business.

So, the lemon law does not apply in the following conditions:

  • Business to Business (B2B) purchases – For instance, if you purchase kitchen equipment for your restaurant, the transaction will not be covered by the lemon law, as it is a B2B transaction.
  • Consumer to Consumer (C2C) purchases – Similarly, items purchased from online marketplaces, like Carousell, Shopee, or Lazada, may not be covered, especially if the merchant doesn’t manage their business on these platforms. Instead, they will be considered consumer to consumer transactions.

 

Does The Lemon Law Apply To All Defective Products?

Buying an effective product does not automatically mean the lemon law will apply to you, even if you bought it as a consumer.

Here are some instances wherein the lemon law will not cover your purchase:

  • The product was faulty because of natural wear and tear.
  • The merchant informed you of the product’s defect beforehand, yet you still purchased it.
  • The defect existed before purchasing, yet you still bought the product.
  • You discovered the product was not fit for use for a particular purpose you were thinking of, but you failed to communicate this particular use to the seller before the transaction.
  • You caused damage to the product through misuse, improper care or storage, or unauthorised repair.

The lemon law is applicable to all consumer goods found defective and unable to live up to the standards advertised by the merchant. However, not all goods are guaranteed coverage by the lemon law. It does not cover transactions on:

  • Real estate property
  • Land
  • Rental goods which are not covered by a hire-purchase agreement
  • Services

 

What Can You Do If You Bought A Defective Product?

According to the law, consumers have the right to get the merchant to:

  • Consumers have the right to ask the seller to repair or replace the faulty product within a reasonable time and at no additional cost. This remedy must be provided promptly and without causing undue inconvenience. If the product is under warranty, repairs or replacements may be arranged through the warranty, either by the seller or the manufacturer.
  • If the defective product cannot be repaired or replaced, or if these options are unreasonable due to high costs, consumers can seek a refund. You may choose a partial refund, allowing you to keep the defective product, or a full refund, which usually requires returning the item. This option is particularly useful if the faulty product is beyond repair or does not meet the expectations set in the sales contract.
  • Under Singapore’s Lemon Law, the seller cannot contract out of their obligations. Even if the manufacturer or supplier provides a separate warranty, the seller remains the primary party responsible for addressing lemon law claims. However, sellers may seek recourse from their suppliers or manufacturers under the Sale of Goods Act if necessary.
  • To avoid disputes, it is important for businesses to stipulate the condition of their goods in the sales contract. This helps clarify consumer expectations from the beginning and allows both parties to determine whether the product is defective based on the contract’s description. In cases where a product does not meet satisfactory quality, the contract serves as a reference point for resolving the issue.
  • Consumers should also be aware that improper use or inappropriate storage of the product may void their rights under the Lemon Law. It is important to handle the product according to its intended purpose to avoid complications when seeking recourse.

 

What Can You Do If The Seller Does Not Honour The Lemon Law?

What Can You Do If The Seller Does Not Honour The Lemon Law

If a seller does not honour the Lemon Law in Singapore, you still have several options to seek recourse and protect your consumer rights. Here’s what you can do:

Negotiate With The Seller

As a consumer, your first step should be to communicate the issue directly with the seller. Negotiating your demands is often quicker and more favourable than pursuing formal claims.

Clearly explain the defect that arose in the product and refer to the Lemon Law, which protects consumer interests. In many cases, sellers may prefer to resolve the matter amicably to avoid additional costs or legal actions.

Request Help From CASE

If there is a negotiation failure, you can ask for help from the Consumers Association of Singapore (CASE). CASE is a dedicated organisation that handles complaints and protects consumer interests in Singapore.

They protect consumer interests and assist consumers with filing claims against unfair practices done by Singapore-based businesses.

File A Small Claims Action

You can also consider filing a small claims action in the Small Claims Tribunal (SCT). Further, your claims must not exceed $20,000 (or $30,000 if you and the merchant agree on bringing the claim to the SCT.

Before initiating a claim with the SCT, it’s important to determine your desired outcome—whether it’s a refund, price reduction, replacement, or repair. Begin by gathering crucial evidence to support your claim.

This evidence might include photos of the faulty product, proof of purchase, the warranty agreement, and documentation of any defective components.

Once your evidence is compiled, contact the seller or dealer to inform them of the defects. If the seller is uncooperative or refuses to meet your requests, you can escalate the matter by filing a small claims action.

The SCT is an accessible legal avenue for disputes involving claims up to $20,000 (or up to $30,000 if both parties agree). Alternatively, you can file a complaint with CASE if your claim does not exceed $10,000.

File A Complaint With Enterprise Singapore

Enterprise Singapore oversees the Consumer Product Safety Office (CPSO), which ensures consumer products supplied in Singapore are safe for use.

The CPSO can order the seller to cease its sale and provision, face a $2,000 fine, receive a 12-month jail term, or both.

Sue The Seller

If there is no other recourse, you may consider suing the merchant who sold you the defective product.

You can claim up to $20,000 (0r $30,000 if both parties agree to take the case to the SCT). You may also sue in the State Courts or High Courts for higher claims.

 

Conclusion About The Singapore Lemon Law

Singapore’s lemon law protects consumers who have purchased defective items. It also outlines possible legal remedies, the scope of application, consumer rights, and many more.

Although the law has wide coverage, issues stemming from selling and purchasing defective items still occur from time to time.

If you feel you’ve bought a defective product and the seller refuses to refund, repair, or replace it for you, we strongly encourage you to get in touch with our professional lawyers.

Tembusu Law is a law firm in Singapore specialising in Corporate, Litigation, Bankruptcy, Family, Criminal Law, and many others. Get your free 30-minute consultation now and allow one of our criminal lawyers in Singapore or divorce lawyers in Singapore to discuss the details of your case.

 

Frequently Asked Questions About The Singapore Lemon Law

Is There A Time Limit For Invoking The Lemon Law?

Yes. You can invoke the lemon law only within 6 months of you purchasing the product. This also means that the lemon law supersedes warranties less than 6 months long.

What Are Some Examples Of Defective Products?

Manufacturing defects can result in faulty products with:

  • Improperly attached parts
  • Incorrectly installed electrical circuits
  • Improperly manufactured material
  • Missing features
  • Faulty components

Can Retailers Be Held Liable For Defective Products In Singapore?

Yes. If the retailer advertises an item for sale, it implies that they’ve ensured the product’s safety and useability. They may not have manufactured or distributed the defective product, but they may still be held liable for injuries or monetary losses caused by selling it.

Is No Refund Policy Legal In Singapore?

No. Singapore’s lemon law covers consumer claims for repair, replacement, or refund of defective products within 6 months of their purchase or delivery.

About the author

About the author

Jonathan Wong

Jonathan is the Founder and Managing Director of Tembusu Law. He is also the founder of LawGuide Singapore, a prominent legaltech startup which successfully created and launched Singapore’s first legal chatbot in 2017.

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