[ad_1]
SINGAPORE: Three retail establishments have voluntarily agreed to stop using misleading language in their ads, the Singapore Competition and Consumers Commission (CCCS) said on Friday (October 16).
The operators of ABC Bargain Center, ABC Express and Valu $ said they would not use phrases like “close of sale” and “direct sale” in their ads.
READ: Competition regulator publishes price transparency guidelines; will come into force in November
“Ads in that language give the impression that the reason for the discounted price is due to the imminent closure of the business and that the discounted price would only be available for a limited period of time,” said CCCS.
In 2019, the three retail operators approached the competition regulator to discuss certain advertisements at their outlets.
Before the meeting, the phrases – “sale close” and “immediate sale” – were continuously displayed at their outlets with no end date, CCCS said.
“CCCS is of the opinion that such advertisements may mislead consumers into believing that there is a price benefit, and the benefit would only be available for a limited period,” he said.
Ads that mislead consumers are an unfair practice that violates the Consumer Protection (Fair Trade) Act (CPFTA).
All three retailers have agreed to remove some or all mentions of the word “direct selling” from their outlets.
They also agreed not to advertise any products as discounted only for a limited period of time unless the retail outlet actually goes out of business, CCCS said.
Retailers also cannot advertise discounted products when there is no genuine price benefit or advantage.
CCCS CLOSELY FOLLOWS OTHER BUSINESSES WITH SIMILAR PRACTICES
Certain retail outlets that operate such as ABC Bargain Center and Valu $ are operated by franchisees, CCCS said.
“The parties have undertaken to make all reasonable efforts to notify and
ensure that all franchised points of sale comply with the aforementioned obligations, “he added.
READ: Consumer price comparison app to be rolled out in Singapore
Retailers are also committed to cooperating with the competition agency on an ongoing basis to ensure agreed obligations are met and ensure continued compliance with the CPFTA.
CCCS added that by accepting voluntary commitments from retailers, it has signaled their cooperation in ensuring that their advertising practices comply with the CPFTA.
“However, CCCS reserves the right to investigate any breach of commitments or any other unfair practice on the part of the parties,” the regulator said.
CCCS added that it was closely monitoring other companies that engage in similar unfair practices.
