Singapore Law Blog

The Consumer Association of Singapore (CASE) is taking out injunction proceedings against Orion’s Belt Network, a timeshare company that also provides timeshare termination services, for repeatedly breaching the Consumer Protection (Fair Trading) Act (CPFTA). This is the first time ever CASE is taking injunction proceedings against a company, as authorised under the CPFTA where CASE is empowered to protect consumers against unfair practices.

Early this year, CASE became concerned that Orion’s Belt Network, which had been in business only since January 2005, had received similar complaints against it within a short span of time. The company would offer to terminate timeshare contracts on behalf of consumers, for a fee. Subsequently, the consumers would find out that their contracts had not been terminated or that they could have terminated their own contracts in writing.

After receiving the seventh filed complaint against Orion’s Belt Network, CASE invited the company to sign a Voluntary Compliance Agreement in March this year. By signing the agreement, the company would:

• Admit to carrying out unfair trading practices
• Compensate consumers who have filed complaints with CASE
• Promise not to engage in unfair trading practices
• Agree to details of the agreement to be made public

Orion’s Belt Network delayed the signing of the agreement by asking for time to look into the filed complaints. However, the company pursued the complainants for payment instead of addressing the issues. CASE also continued to receive filed complaints against Orion’s Belt Network.

From July 2005 to August 2006, CASE received 14 filed complaints against Orion’s Belt Network for:

• Making misleading claims
• Exerting undue pressure on consumers
• Failing to comply with the three-day cooling off period

On 21 September, CASE issued a final reminder to Orion’s Belt Network to sign the Voluntary Compliance Agreement. Orion’s Belt Network did not respond by the deadline of 9.00am, September 25. CASE is taking immediate action against them.