Nail Palace Entities and their Managing Director Found Guilty of Contempt of Court

On the application of the Competition and Consumer Commission of Singapore ("CCCS"), a District Court has found Nail Palace (BPP) Pte. Ltd., Nail Palace (SM) Pte. Ltd. (collectively, the “NP Entities”), and the managing director of the NP Entities, Kaiden Cheng Kai Teng (“Kaiden Cheng”) guilty of contempt of court for failing to comply with court orders that were obtained by CCCS in relation to unfair trade practices under the Consumer Protection (Fair Trading) Act 2003 (“CPFTA”). The NP Entities were fined $15,000 each, while Kaiden Cheng was sentenced to four months’ imprisonment.

This is the first time that CCCS has instituted contempt proceedings against an errant business and its manager for breaching such court orders, and the first time that the CCCS has obtained a substantial fine and imprisonment sentence against the parties that had infringed the CPFTA. The Court’s decision to fine the NP Entities and impose a custodial sentence on Kaiden Cheng signals its disapproval of errant suppliers that flagrantly disregard court orders.

Please refer to the media release for more details.