The company cannot charge you for it later unless you had agreed in writing to make payment. Also, a company must remind you that the free trial period is ending before it can bill you.
This is one of five major changes to be introduced in the law that protects consumers from unscrupulous businesses.
The revisions to give more teeth to the Consumer Protection (Fair Trading) Act will be introduced by June this year, Parliament heard yesterday.
The other changes highlighted by Minister of State (Trade and Industry) Lee Yi Shyan are:
The Act will cover deals up to $30,000, above the current $20,000 ceiling.
Mr Lee gave a preview of the changes in his reply to Mr Yeo Guat Kwang (Aljunied GRC) and Mr Lim Biow Chuan (Marine Parade GRC).
They had asked for an update on the review to the Act, which came into effect in March 2004.
The review began in late 2006, led by a task force of officials from Case and the Trade and Industry Ministry. A public consultation was also conducted last October.
Proposals are now being finalised, said Mr Lee.
On complaints against the timeshare industry, Mr Lee said the new Act will allow consumers to cancel their contracts within a five-day cooling-off period, instead of the current three days.
Also, his ministry is exploring whether the Small Claims Tribunal can hear certain straightforward cases, so that their disputes can be resolved more swiftly and cheaply.
A 'lemon law' is under study too, Mr Lee added.
This will give consumers protection against products with latent defects, known colloquially as 'lemons'.
But Mr Lee was also quick to caution against rushing to regulate any industry that shows the first signs of consumer disputes.
He said 'over-regulation can also stifle new and innovative businesses'.
Mr Yeo, who is Case's president, told The Straits Times he is very pleased with the changes.
Childcare teacher Rita Lee, 51, said: 'The changes give consumers more peace of mind when buying things.
'It will also help keep retailers on their toes.'
sueann@sph.com.sg
