CCCS Secures Court Orders Against Immigration Consultancy Businesses for Misleading Practices

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1.    The Competition and Consumer Commission of Singapore (“CCCS”) has obtained court orders against several immigration consultancy businesses. At the centre of the case is Cheng Yong Teck (“Cheng”) the mastermind behind the unfair trade practices carried on by Paul Immigrations¹, VED Immigrations² and SAVA Immigrations³. The unfair trade practices involved misleading consumers on the urgent need to apply for Singapore Permanent Residency (“PR”) and to guarantee success of applications made through these businesses.

2.    Investigations by CCCS first commenced against Paul Immigrations after the Consumers Association of Singapore (“CASE”) received multiple consumer complaints in relation to its sales tactics.⁴ The focus of the investigations shifted to VED Immigrations, after CCCS found that Cheng had ceased Paul Immigrations’ operations but resumed similar practices through VED Immigrations. Cheng was subsequently found to be operating through a third business, SAVA Immigrations.

CCCS’s Findings

3.    The websites of Paul Immigrations, VED Immigrations and SAVA Immigrations featured forms where potential customers could check their chances of getting PR.⁵ However, instead of receiving results online after filling the form, potential customers would receive calls inviting them for "free consultations". During these consultation sessions, sales staff would make unsubstantiated claims about rapidly changing PR rules and intense competition from other applicants, to try to persuade customers to apply as soon as possible. The sales staff would then make baseless guarantees of PR application approval if customers engaged their services.⁶ CCCS found no reasonable basis for the businesses to make such claims or guarantees, except to close the deals. Affected customers paid up to $10,000 for such services.

4.    The investigation revealed that Cheng was responsible for directing the operations of these businesses⁷ and was deliberate in implementing the misleading practices. When Paul Immigrations was investigated by CCCS, Cheng continued to operate through other businesses to evade detection.⁸ Cheng personally wrote scripts on what staff members needed to do and say to prospective customers, monitored their sales tactics through closed-circuit television footage and implemented a punishment-and-reward system to ensure that his staff members followed his methods.  

Court Order

5.    The District Court has ordered Cheng and the relevant businesses to:

• Cease the unfair trade practices;

• Publish details of the court orders on online platforms used for marketing their services and in major newspapers in Singapore;

• Inform all potential customers about the court orders before contracting with them; and

• Notify CCCS about any change to business structures, and to Cheng’s employment, control or ownership of his businesses.⁹

6.    This case marks CCCS's first court action against a person who used new business entities to evade detection of unfair trade practices.

7.    “In this case, the businesses exploited consumers’ insecurities and unfamiliarity with Singapore’s immigration system, misleading them into paying substantial sums of money for immigration consultancy services. The mastermind attempted to evade detection by closing the initial business while continuing the same practices through other businesses. CCCS has taken court action in this case and will not hesitate to do so in similar cases,” said CCCS’s Chief Executive, Mr. Alvin Koh.

8.    Members of the public can report cases of unfair trade practices to CASE at 6277 5100 (Mondays to Fridays, 9am to 5pm) or https://crdcomplaints.azurewebsites.net/.

– End –

Encl: Annex A – Ray Immigrations website, operated by VED Immigrations

Encl: Annex B – Court Order

About the Competition and Consumer Commission of Singapore

The Competition and Consumer Commission of Singapore (“CCCS”) is a statutory board of the Ministry of Trade and Industry. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

CCCS administers and enforces the Competition Act 2004 and the Consumer Protection (Fair Trading) Act 2003, to guard against anti-competitive activities and unfair trade practices. Additionally, CCCS ensures that businesses observe fair trade measurement practices by administering the Weights and Measures Act 1975, and ensures the supply of safe consumer goods by enforcing and implementing the Consumer Protection (Trade Descriptions and Safety Requirements) Act 1975 and its associated Regulations.

For more information, please visit www.cccs.gov.sg.

¹ Paul Immigrations Pte. Ltd., which operated through its now defunct website at https://www.paulmmigrations.sg.

² VED Immigrations Pte. Ltd., which operated under the business name “Ray Immigrations” and through its now defunct website at https://www.rayimmigrations.sg.

³ SAVA Immigrations Pte. Ltd., which operated through its now defunct website at https://www.savaimmigrations.sg.

⁴ CASE continued to receive complaints against Paul Immigrations even after the business had signed an agreement with CASE to stop such practices.

⁵ See Annex A for screenshots of the website operated by VED Immigrations.

⁶ The Immigration and Checkpoints Authority (“ICA”) has previously issued an advisory relating to applications for long-term immigration facilities through commercial entities or consultants, stating that ICA does not support nor endorse the services offered by such entities or consultants. The ICA’s advisory can be accessed at https://www.ica.gov.sg/public-education/apply-long-term-immigration-facilities-through-commercial-entities.

⁷ For example, Cheng had operated VED Immigrations under the alias “James Loh”.

⁸ The registered shareholders and directors of VED Immigrations and SAVA Immigrations are Cheng’s family members.

⁹ See Annex B for the court order.