SINGAPORE - The cancellation of a promised event, or one that fails to deliver as promised, can leave a bitter taste in the mouths of its attendees, especially if they have already paid for it.

Over the past three weeks, events that fell below expectations have hit the headlines and spawned memes both here and abroad.

On Feb 21, an event that billed itself as Singapore’s first sky lantern festival failed to take off with any flying lanterns or food sold, leaving disgruntled revellers demanding refunds.

In Glasgow, children and fans of fictional chocolatier Willy Wonka were shocked to be ushered into a sparsely decorated warehouse on Feb 24 and 25, instead of the sugary immersive experience promised by the organiser’s artificial intelligence-generated ad.

The Straits Times speaks to lawyers to find out what consumers can do in such situations.

Q: What recourse do I have when an event organiser does not deliver the event as promised?

A: If an organiser does not provide a refund after failing to deliver an event, consumers can file a complaint with the Consumers Association of Singapore (Case), or a claim with the Small Claims Tribunals, which resolves claims of up to $30,000. The latter option allows disputes between consumers and suppliers to be addressed in a quicker and less expensive way than a civil trial.

Case provides free advice to those who contact the association via its hotline on 6277-5100, by e-mail or by making an appointment to walk into its office in Ghim Moh.

If consumers want Case to follow up on their dispute, they must become a member – to establish a relationship between the consumer and Case – so that the organisation can represent them in talks with the retailer. A nominal fee is collected to cover the administrative costs of following up on their dispute.

According to Case’s website, its mediation process resolves about 70 per cent of disputes.

However, some disappointed attendees of the sky lantern festival, like product manager Ong Xiu Yan, are reluctant to pay such fees.

Ms Ong said she was unwilling to pay more money – a membership fee of $27.25 and administrative charges – because Case cannot guarantee that she will get the $100 she paid for two tickets to the festival back.

The 38-year-old said: “I feel the organisers are capitalising on loopholes, and how they can get away with it without legal implications.

“If that’s the case, essentially many could have come up with bogus events, and used terms and conditions or unforeseen circumstances to get away with the money.”

Under the Unfair Contract Terms Act, businesses are not allowed to put up disclaimers to avoid liability for breaching their contracts, said Farallon Law managing director Nicolas Tang.

Lawyer Thaddeus Oh said two or more consumers with claims against the same event organiser can combine their complaints into a single claim at the Small Claims Tribunals to save on costs.

For a claim that is valued at up to $5,000, a person has to pay $10 for filing fees. For claims worth more than $5,000 but not more than $10,000, the fee increases to $20. When claiming amounts above $20,000, a person is required to pay 1 per cent of the amount claimed.

Mr Oh, a senior associate in the dispute resolution team at law firm Withers KhattarWong, added that the total value of the claims made by consumers represented by one party must not exceed $20,000, or $30,000 if the organiser agrees to it.

The tribunals also have the right to order that the claims be heard separately, rather than combined, he added.

Mr Tang suggested that the costs for aggrieved consumers can be reduced with a system that allows those with claims against a common entity to pool their resources and register their cases together so hearings and enforcement actions can be done collectively instead of individually.

Legal fees can then be shared, he added.

More information about how to file a claim at the tribunals can be found at this website.

Q: I am happy with none of the options offered by the organisers. Must I accept any?

A: Consumers will lose the right to a refund if they accept the alternatives proposed by an event organiser that has failed to deliver as promised.

Farallon’s Mr Tang said in such instances, the dispute between the parties will be treated as settled and the consumer cannot decide later to make a claim for the original breach of contract.

“That is why some consumers will refuse the initial offer of compensation offered by the business, so that the consumer still has the right to file a claim later on, within six years from the date of the breach,” added Mr Tang, who specialises in arbitration and mediation.

Q: Will winning a case at the Small Claims Tribunals guarantee that I get my money back?

A: While there are laws to protect consumers, the process of getting a refund can still be difficult.

Even if consumers win a case in the tribunals, enforcement of the decision can be costly.

Mr Tang said: “Consumers will usually need to engage a law firm to enforce the (tribunals’) order, and the cost of enforcement is much larger than the price of the event ticket.”

In a scenario where the event organiser refuses to pay, the consumer would have to execute or enforce the order in the civil courts, which would require the consumer to spend more money and time chasing down what could possibly end up being a bad debt, said Mr Oh.

He added: “This weakness is not unique to consumers; even litigants in High Court cases have to consider the issue of recoverability when pursuing their claims.”

Civil cases are heard in the High Court when the claim amount exceeds $250,000, or in the cases of claims for road traffic accidents or personal injuries from industrial accidents, when the sum claimed crosses $500,000.

Q: How can consumers be better protected from events that fail to deliver?

A: Mr Oh suggested that ticketing agencies could hold on to the revenue from selling tickets on behalf of an organiser until an event is over.

For instance, ticketing agency Sistic typically transfers ticket proceeds to the event organiser’s bank account within 10 working days of the successful completion of an event.

However, refund policies vary among ticketing websites.

Eventbrite allows organisers to set a no-refund policy. Meanwhile, Ticketmaster permits refunds if an event is cancelled. If the event is rescheduled, Ticketmaster can cancel the ticket order, subject to the event organiser’s discretion, and issue a refund.

In 2014, Mountbatten MP Lim Biow Chuan mooted the idea in Parliament that the Government could consider regulating concerts and events to ensure that ticket charges paid for by consumers are secured if the event is cancelled.

Responding to Mr Lim, then Acting Minister for Culture, Community and Youth Lawrence Wong said the preferred approach is to push more on industry self-regulation and to raise consumer awareness, as most concert tickets are sold via Sistic, which has the practice of holding on to sales revenue.

Q: How can consumers tell whether event organisers are unlikely to deliver as promised?

A: Mr Tang advised consumers to do their research before purchasing or ordering anything, especially when such transactions are done electronically.

He said: “The track record of the organisers and their business, and the terms and conditions of sale, should be examined carefully before they enter into any contract or part with their money.”