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This is a result of information asymmetry given that the repair advisors are in a more knowledgeable position regarding the available and required services, and clients act upon their advice. Thus, there is an opportunity for advisors attempting to increase their own commission to recommend more than necessary services.
Based on the Consumer Protection (Fair Trading) Act in Singapore, it is unlawful for a trader to "do or say anything, or omit to do or say anything, if as a result a consumer might reasonably be deceived or misled." The incentive pay compensation scheme has resulted in service advisors "systematically misleading customers and charging them for unnecessary repairs", and this is a breach of the Act...
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