Tag: CCCS

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has issued a warning to foodpanda for its misleading advertisement in a recent advertising campaign for its “Pandapro” subscription service.

According to a note from the CCCS, the Pandapro advertisement promoted ‘Unlimited Free Delivery on All Restaurants’ for the subscription service which ran from 1 July to 30 September 2024. This was displayed across multiple platforms including Foodpanda’s Instagram page, its in-app marketing, billboards and signages at public areas such as bus stops.

Following this, the commission stated that they commenced an investigation following a complaint on the advertisement. According to the complaint, the promotion promised “unlimited free delivery on all restaurants” for Pandapro subscribers. 

For CCCS, given that the ad is without any qualifiers, it could mislead consumers into thinking that Pandapro subscribers would enjoy free delivery on all restaurants available on Foodpanda. In fact, in respect of food delivery fees, Pandapro subscribers only received a $3 discount for all restaurants, or a discount of up to $6 for selected restaurants. 

Contrary to the advertised ‘free delivery on all restaurants, CCCS found that over 40% of food delivery transactions made by Pandapro subscribers on all restaurants over the advertising period required a residual delivery fee to be paid after the discounts were applied.

Alvin Koh, chief executive at CCCS, said, “When a business offers ‘free’ services to entice the consumer to try a service, it is not unreasonable for an average consumer to understand “free” to mean that nothing will be charged. It is crucial that businesses ensure that their claims are accurate. Transparent pricing is crucial for consumers to make informed purchases and to allow all businesses to compete fairly.”

Following this, CCCS has asked foodpanda to provide a full refund of subscription fees to customers who subscribed to Pandapro during the advertising period. It has also asked foodpanda to provide clarification to customers who had subscribed to Pandapro during the advertising period and the public on the terms of the Pandapro subscription.

Lastly, CCCS has asked foodpanda to review its existing and future marketing materials for Pandapro subscription to ensure compliance with Singapore’s fair trading laws.

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has granted conditional approval of the proposed commercial cooperation after accepting commitments from Singapore Airlines (SIA) and Garuda Indonesia. It is worth noting that the partnership was already in plan back in 2023 and an MoU back in 2021.

According to CCCS, the parties submitted that the proposed cooperation between SIA and Garuda will lead to enhanced air travel product for Singapore to Indonesia services, as well as expanded virtual networks of the airlines, thereby providing an increased number of service offerings to passengers;

Moreover, the partnership aims to promote more competitive fares; have significant benefits to corporate account customersm create benefits for members of both airlines’ Frequent Flyer Programme; as well as improved connectivity for both Singapore and Indonesia, with consequential benefits to both countries’ aviation industry and tourism.

Part of the approval process was how CCCS conducted a market testing exercise from 13 to 26 June to assess whether the proposed commitments would sufficiently address the competition concerns arising from the proposed cooperation. Most relevant stakeholders did not raise any concerns with the proposed commitments.

Alvin Koh, chief executive at CCCS said, “Airline alliances are an important part of the aviation industry bringing significant benefits to the Singapore economy as well as overseas markets. We look forward to working closely with our businesses and stakeholders to deliver positive, prompt and impactful outcomes that matter. Full cooperation from businesses throughout the process, providing complete, concise and relevant information will facilitate the timely completion of CCCS’s review.”