In more detail

TLM sells long-term maintenance service packages for alkaline water systems via door-to-door sales. When consumers sign up for a package, they would receive a water dispenser, water filtration system and periodic water filter replacements. In the service agreement of the maintenance package, it states that TLM is required to repair the water dispenser or filtration system if there are any defects.

Since January 2020, there were numerous consumer complaints lodged against TLM. The complaints generally involved instances where TLM was unresponsive to repeated service requests or when TLM did not show up for appointments to replace or repair faulty products.

Due to the high number of complaints received, the Consumers Association of Singapore (CASE) issued two company alerts on TLM to warn consumers about TLM's unfair practices in February 2021 and April 2022. CASE also asked TLM to enter into a voluntary compliance agreement, but TLM did not sign this. CASE then referred the case to the CCCS for investigation under the Consumer Protection (Fair Trading) Act (CPFTA) in November 2022.

After the CCCS' investigations, it applied to the State Courts to make findings that TLM engaged in unfair trading practices, including the following:

• TLM falsely claimed that TLM or its products were accredited and Thomson Medical Centre was one of its customers
• TLM misrepresented that its water dispenser was free for a limited period of time
• TLM misled consumers that it would repair or replace faulty products or provide a change of water filters when requested under the service package, or misled consumers by giving false excuses about its delay or inability to do so
• TLM accepted payments for its maintenance service packages which included a 1-year warranty for its "tankless" water dispensers when it knew or ought to have known that it would be unable to provide such repair or replacement services within the warranty period
• TLM misled consumers that alkaline and/or filtered water can prevent or improve the condition of diseases such as cancer, diabetes, kidney disorders, etc.

CCCS also applied for an injunction against TLM's director to restrain him from knowingly abetting, aiding, permitting or procuring TLM to engage in the abovementioned alleged unfair practices.

This case exemplifies the CCCS' strict stance against companies that persistently engage in unfair trading practices in violation of the CPFTA despite repeated warnings issued. Companies should ensure that its trading practices remain in compliance with the CPFTA.

Contravention of the CPFTA may result in the CCCS applying to the courts for a declaration that the errant company is engaging in unfair trading practices and for an injunction restraining the company and its director(s) from doing so. The court may also issue accompanying orders, such as requiring the errant organisation to notify its consumers about the declaration or injunction before entering into contracts with the consumers, and to include a statement about the declaration or injunction in every invoice or receipt. Failure to comply with the court's orders may result in an offence of contempt of court.

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