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SINGAPORE – Residents who recently visited the ABC Bargain Center, ValuDollar or ABC Express outlets will have noticed that the seemingly permanent “sales closing” and “fire sales” signs are nowhere to be seen.
On Friday (October 16), the Competition and Consumers Commission of Singapore (CCCS) said that the owners and operators of the three retail outlets have voluntarily stopped using these ads as of September 30.
In a statement, CCCS said that ads in that language give the impression that discounts are being offered because the business is closing and that bargains will only be made for a short time.
In September last year, The Straits Times reported that an ABC Bargain Center outlet in Potong Pasir proclaimed it had a “closed sale” for a period of nearly two years.
Noting that such ads were continuously displayed without reference to an end date at the three retailers’ outlets, CCCS said they could mislead consumers into believing that there is a price benefit available for a limited period.
Misleading consumers in this way constitutes an unfair practice that violates the Consumer Protection (Fair Trade) Act (CPFTA), the consumer watchdog said.
Retailers have voluntarily pledged to remove all advertisements proclaiming a “clearance sale” at their outlets.
If they know or should know that their products will continue to be available for a substantially longer period than advertised, they will also not advertise them as available at a discount for a limited period of time, unless the store is actually closing.
Where there is no genuine benefit or price advantage underlying the advertisement, retailers will not advertise their discounted products either.
In addition, they must ensure that their franchisees are also aware of the advertising obligations.
Retailers have also agreed to cooperate with CCCS on an ongoing basis to ensure that advertising obligations are met and that they comply with the CPFTA.
CCCS said it is closely monitoring other companies that engage in similar unfair practices.
The commission also urged all companies to review their business practices to comply with the CPFTA.
On November 1, the CCCS guidelines on price transparency will take effect. They provide more clarity on what constitutes a violation of consumer protection laws and set out the factors and circumstances that the commission may consider when evaluating whether advertised prices and related practices are potentially misleading.
Under the CPFTA, the CCCS is empowered to investigate errant businesses and file a request for a court order against them. If they do not end the unfair practice, they can be held in contempt of court, which carries a fine of up to $ 10,000, up to one year in prison, or both.
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