The Consumer Protection (Fair Trading) Act (CPFTA) strengthens consumer rights in Singapore, including the right to cancel certain contracts within a fixed period. This right provides consumers with a “cooling-off” window to reconsider purchases.
1. Which Contracts Can Be Cancelled?
Consumers may cancel:
- Direct sales contracts (e.g., unsolicited home visits).
- Timeshare or long-term holiday product contracts.
Excluded contracts: property, business-use goods/services, and transactions under S$50.
2. How to Cancel a Contract
Consumers must deliver a notice of cancellation by:
- Hand delivery.
- Pre-paid post.
- Facsimile to a designated number.
The notice must reference the contract, identify the supplier, and include the consumer’s details.
3. Cancellation Period
- 5 business days (excluding weekends and public holidays).
- Starts from contract date or when required information notice is provided.
- During this time, suppliers cannot demand payment.
Conclusion
The CPFTA protects consumers against high-pressure sales and unfair practices. Understanding these rights helps expatriates and locals alike make informed decisions. Advomi provides legal advice on consumer rights, contract disputes, and remedies under Singapore law.
