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SINGAPORE: Starting in November, retailers will not be able to bypass mandatory fees, falsely promote “free” items, or conduct misleading price comparisons and discount offers when advertising goods or services, based on a set of price transparency guidelines published by the Commission. Competition and Consumers. Singapore (CCCS).
These guidelines are intended to establish the CCCS’s interpretation of the Consumer Protection (Fair Trade) Act (CPFTA) in relation to price advertising and other pricing practices, the Commission noted.
“Transparent and accurate pricing enables consumers to make informed purchasing decisions that are essential for a well-functioning market,” CCCS said in a press release on Monday (September 7).
“The guidelines examine common pricing practices that can mislead consumers and violate the CPFTA, and include actions that suppliers must take to ensure that prices and accompanying terms and conditions are accurate and clearly communicated.” said.
The Commission added that the guidelines, which apply to both physical and online retail stores, also set out practices that suppliers are encouraged to adopt to minimize potential disputes with consumers.
READ: Consumer price comparison app to be rolled out in Singapore
CLEAR AND PROMINENT TERMS AND CONDITIONS
The guidelines emerge after a public consultation exercise, which elicited responses from 17 individuals, as well as nine organizations and companies.
They cover four areas, including “trickle pricing” – the practice of advertising products or services at prices lower than what consumers would actually have to pay.
This would include cases where additional fees, taxes, and charges are only disclosed during the transaction process.
“When such charges cannot be reasonably calculated in advance, suppliers must clearly and prominently disclose the existence of such charges along with the principal price. The disclosure must also include any subsequent fees that a supplier or any third party may impose on a consumer, ”he said.
The Commission gave the example of “trickle-down” of optional charges through the use of pre-checked boxes that enroll consumers in an additional or recurring payment in small print, as well as cases in which such terms are hidden by a pop-up box.
These key terms and conditions should be stated “clearly and prominently” and not in fine print, which could lead to consumers losing important information.
“Using design elements such as pop-ups and flickering banners that hide, reduce prominence, and compete for attention with pre-marked boxes divert consumers’ attention and increase the likelihood that consumers will lose material information,” said CCCS.
The Commission recommended that, for the sake of transparency, retailers should adopt an approach that draws consumers’ attention to optional add-ons and requires consumers to express their consent by actively checking the boxes.
They must also provide a detailed final price list, reflecting all mandatory and optional charges to consumers before they make payment.
This should also allow them to opt out of these charges without having to restart their transaction.
READ: Competition regulator cites concerns about price transparency in the online travel booking sector
Another area covered by the guidelines is discounts.
The Commission said retailers should use a “good faith old price” when offering discounts or making comparisons with previous prices to avoid misleading consumers about potential savings.
He gave the example of a retailer pricing an item at $ 30, which normally costs $ 50, which offers consumers a discount of $ 20.
However, the retailer advertises a S $ 70 price benefit by temporarily pricing the item at S $ 100 for one day, indicating that this is the regular price of the item.
The “usual price” presented by retailers should not be one that they have never offered, or one that was offered only for a “negligible period of time” before offering the discount, CCCS said.
“Doing so could mislead consumers about the amount of savings they can achieve and receive a higher price benefit than actually exists,” he added.
Such false or misleading price comparisons could potentially violate the CPFTA, the Commission said.
The guidelines also cover price comparisons, with the CCCS indicating that comparisons made to other retailers’ prices should not be false or misleading, adding that retailers should conduct their own research, including comparing prices of goods and services. Similar.
The use of the word “free” is also covered in the guidelines, and the Commission outlines the terms and conditions, or the deferred charges must be presented clearly and prominently.
Suppliers should ensure that the price of a product or service is not increased to cover the cost of a free gift or trial, CCCS said, adding that incidental costs, such as shipping, should also be clearly stated.
“Suppliers must ensure that their prices are accurately represented and clearly and prominently communicated so that consumers can make informed decisions and buy with confidence. Suppliers can win too, as fair business practices can go a long way toward building a strong reputation as a trusted merchant, ”said CCCS CEO Sia Aik Kor.
“In short, the guidelines help build a credible market,” he added.
ADDITIONAL STATUTORY POWERS
Speaking to reporters during a virtual press conference on Monday, CCCS Senior Assistant Director of Consumer Protection Davina Wong said that as the first points of contact for consumer complaints, the Singapore Consumers Association ( CASE) and the Singapore Tourism Board (STB) would reach out for errant retailers and help clarify points in the CPFTA if necessary.
Those who persist in errant practices will face warnings or even court injunctions, he added.
Ms. Wong acknowledged that there are challenges in enforcing the rules for foreign-based providers.
However, he pointed to the agreements CASE has signed with other jurisdictions as a possible avenue for consumers to seek redress in such cases, adding that the Commission can learn from other regulators internationally on how these problems can be resolved.
The Commission’s deputy executive director for legal affairs, compliance and consumer protection, Lee Cheow Han, noted that CCCS has been responsible for the Act for more than two years and has found space for it to review its administration.
The CCCS took over the management of the CPFTA from the now defunct SPRING Singapore in April 2018.
Mr. Lee added that he is reviewing the possibility of acquiring additional legal powers to allow for better and more effective enforcement of the law.
“One of the areas that we are looking at is the possibility of having this power to impose economic sanctions,” he said.
“There are other areas that I cannot reveal at this time because it is a work in progress, but we are definitely looking at some other possibilities to increase our legal powers.”
