The programme with the Singapore Vehicle Traders Association (SVTA), named the CaseTrust-SVTA joint accreditation scheme, was launched yesterday on the second day of a two-day Fair Trading & You Carnival held at Plaza Singapura.

Administered by the Consumers Association of Singapore (Case), the scheme is an extension of the existing CaseTrust Accreditation Scheme, launched in 1999, which has recognised sectors from private schools to online retail stores.

So far, 49 car retailers have applied to be on the new scheme.

Another result of the scheme is the launch of the new Motor Industry Disputes Resolution Centre at the SVTA office in Ubi, which allows anyone using the services of an accredited car retailer to avail themselves of mediation and other dispute resolution services if the need arises.

'With this scheme, consumers can easily differentiate which are the reliable vehicle dealers simply by spotting the CaseTrust-SVTA logo at the showroom,' said Case president Yeo Guat Kwang. 'This way, disputes are prevented before they even occur.'

This is how the accreditation scheme works: Companies apply for accreditation by filling up a form and sending it to Case. The latter will then evaluate each firm in terms of factors such as cancellation and refund policies, whether the information given to its customers is accurate, dispute resolution procedures, and whether its staff are knowledgeable about the company's practices. Accreditation will cost each company, which will receive a trust mark valid for four years, an average of $905 to $2,987 a year, depending on its size.

Currently, 500 business have signed on under the existing accreditation scheme, up from just 300 two years ago. Car retailers say the new CaseTrust-SVTA programme is a positive move by the industry.

'It is a great thing,' said the owner of Think One Automobile & Trading, Mr Neo Tiam Ting, 39. 'It will weed out those doing seedy business and giving us a bad name. It's also very timely, considering the flak the industry has got lately.'

Recently, the industry suffered a credibility blow in the wake of police reports lodged in February against a 'car dealer' who allegedly took thousands of dollars from customers without delivering the cars. Complaints to Case have also been increasing. Last year, the consumer watchdog received 1,709 complaints against motor vehicle businesses, up from 1,562 in 2007.

Read the full story in Monday's edition of The Straits Times.