<TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR>Aug 5, 2009
CASE ACCREDITATION
</TR><!-- headline one : start --><TR>Rogue businesses can exploit loopholes
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->WE REFER to the Forum Online letter, 'Explain auditing process for granting CaseTrust accreditation' (July 24).
The accreditation system is based on the principle of voluntary industry self-regulation. This allows industries to grow while providing a mechanism to protect consumers against unfriendly business practices.
CaseTrust, introduced in 1999, has an established and proven track record. More than 500 companies in eight industries are currently accredited. Partners with CaseTrust include the National Association of Travel Agents Singapore, Singapore Retailers Association, Spring Singapore, Singapore Tourism Board, Infocomm Development Authority, Building and Construction Authority, Economic Development Board and the Ministry of Manpower.
Businesses have to pass a comprehensive checklist for an application accreditation grant. Upon application, the business' history of consumer complaints, registration with the Accounting and Corporate Regulatory Authority of Singapore or other government agencies will be checked.
For the CaseTrust for Education scheme, applicants are assessed on a list of 40 criteria, including clear fee policies, well-defined student redress practices and systems. A student protection scheme must be in place and standard student contracts must be signed with students.
Interim and renewal assessments are conducted on the third and fourth year respectively. Applicants with borderline results are assessed again in the second year after getting the trust mark.
CaseTrust also conducts random mystery checks. Complaints to the Consumers Association of Singapore (Case) against accredited companies are taken seriously and investigated. When an accredited business is found to have breached the criteria, disciplinary actions are taken.
For every new industry that CaseTrust accredits, we refine the criteria in consultation with industry stakeholders to address common consumer pitfalls.
For example, in drawing up the CaseTrust for the motoring industry, we require accredited dealers to take up an insurance bond capped at $50,000 to protect customers' fees and deposits paid in the event of an unresolved dispute.
Despite best efforts and intentions, voluntary industry self-regulation will not work if rogue businesses are determined to exploit the loopholes. For sectors ridden with complaints, such as timeshare, real estate and private education services, Case is glad that the Government will be tightening the regulatory requirements to weed out the black sheep.
There is a limit to what voluntary industry self-regulation can achieve but it will never be as effective as a strong government regulatory regime.
Yeo Guat Kwang
President
Consumers Association of Singapore
CASE ACCREDITATION
</TR><!-- headline one : start --><TR>Rogue businesses can exploit loopholes
</TR><!-- headline one : end --><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->WE REFER to the Forum Online letter, 'Explain auditing process for granting CaseTrust accreditation' (July 24).
The accreditation system is based on the principle of voluntary industry self-regulation. This allows industries to grow while providing a mechanism to protect consumers against unfriendly business practices.
CaseTrust, introduced in 1999, has an established and proven track record. More than 500 companies in eight industries are currently accredited. Partners with CaseTrust include the National Association of Travel Agents Singapore, Singapore Retailers Association, Spring Singapore, Singapore Tourism Board, Infocomm Development Authority, Building and Construction Authority, Economic Development Board and the Ministry of Manpower.
Businesses have to pass a comprehensive checklist for an application accreditation grant. Upon application, the business' history of consumer complaints, registration with the Accounting and Corporate Regulatory Authority of Singapore or other government agencies will be checked.
For the CaseTrust for Education scheme, applicants are assessed on a list of 40 criteria, including clear fee policies, well-defined student redress practices and systems. A student protection scheme must be in place and standard student contracts must be signed with students.
Interim and renewal assessments are conducted on the third and fourth year respectively. Applicants with borderline results are assessed again in the second year after getting the trust mark.
CaseTrust also conducts random mystery checks. Complaints to the Consumers Association of Singapore (Case) against accredited companies are taken seriously and investigated. When an accredited business is found to have breached the criteria, disciplinary actions are taken.
For every new industry that CaseTrust accredits, we refine the criteria in consultation with industry stakeholders to address common consumer pitfalls.
For example, in drawing up the CaseTrust for the motoring industry, we require accredited dealers to take up an insurance bond capped at $50,000 to protect customers' fees and deposits paid in the event of an unresolved dispute.
Despite best efforts and intentions, voluntary industry self-regulation will not work if rogue businesses are determined to exploit the loopholes. For sectors ridden with complaints, such as timeshare, real estate and private education services, Case is glad that the Government will be tightening the regulatory requirements to weed out the black sheep.
There is a limit to what voluntary industry self-regulation can achieve but it will never be as effective as a strong government regulatory regime.
Yeo Guat Kwang
President
Consumers Association of Singapore
