Singapore – Following an investigation conducted by the Competition and Consumer Commission of Singapore over its marketing practices, water purifier brand Sterra has released an apology over its false and misleading marketing practices, more specifically an ad posted in February 2024 that misled consumers into thinking that Singapore tap water is unsafe for consumption without using their water purifier.

“Moving forward, we are committed not to publish false or misleading ads, including those in relation to the quality of Singapore tap water. We value our customers and will continue to work on providing the best for them,” the company said.

It has also thanked CCCS and PUB–the country’s water supply government agency–for alerting them of consumer concerns about their advertising.

CCCS notes that three models of air purifiers sold by Sterra were made in Singapore when they were in fact made in China. Moreover, two models of Sterra’s water purifiers were marketed as “Korean” when they were neither sourced from nor manufactured in Korea, but were in fact manufactured in China; and that the ‘usual’ (i.e. pre-discount) prices that Sterra claimed for comparison with its discounted price were not genuine previous prices and, in fact, never offered to any customer.

Following this, CCCS has ordered Sterra as well to stop its unfair trade practices and put in place an internal compliance policy to ensure that its marketing materials comply with fair trading laws.

It has also stated that Sterra must cooperate with the Advertising Standards Authority of Singapore (ASAS) and Singapore public agencies including PUB to resolve all complaints by consumers and publish clarifications in relation to any advertisements that are found to be misleading by ASAS or the public agencies.

Moreover, Sterra’s directors, Lim Liangzhi and Lim Wei Hou, have similarly given personal undertakings to CCCS that they will not engage in any unfair trade practice, or facilitate Sterra to do so in future.

Alvin Koh, chief executive at CCCS said, “CCCS takes a firm stance against businesses that make false or misleading claims in their marketing. Such practices hinder the ability of consumers to make informed decisions, which is essential for well-functioning markets. They also erode consumer trust and undermines the ability of honest businesses to compete on a level playing field.”

This is not the first time CCCS has called out a water filtration brand for misleading advertising practices. In March this year, the commission ordered water filtration brand Purexygen to remove its misleading claims and review its own marketing practices amidst public outcry on the brand’s claims that its water filters were tested by testing bodies in the sales kit.

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has released a Statement of Decision (SDP), noting that the acquisition of Trans-cab by ride-hailing giant Grab is likely to result in a substantial lessening of competition in the market for the supply of ride-hail platform services to drivers and passengers in Singapore.

According to the commission, it has found that the proposed acquisition is likely to entrench and strengthen Grab’s already dominant position in the ride-hail platform market to the detriment of drivers and passengers.

It has also noted that that Grab’s plans to acquire Trans-cab, which is one of the largest fleets (taxi or private-hire car) not owned by or in partnership with any ride-hail platform in Singapore, to increase the availability of drivers on its ride-hail platform comes at a time when rival ride-hail platforms are facing driver supply shortages.

“There are also various strategies which may be employed by Grab to induce Trans-cab drivers to increase their usage of Grab’s ride-hail platform. The Proposed Acquisition is thus expected to result in a greater degree of “stickiness” of Trans-cab drivers to Grab’s ride-hail platform and a potential reduction in usage of rival ride-hail platforms. Consequently, rival ride-hail platforms’ access to Trans-cab drivers post-merger is likely to be significantly restricted,” the commission said in a press statement.

CCCS also notes that if competition constraints on Grab from rival ride-hail platforms are weakened, drivers and passengers could face higher prices and fewer choices for ride-hail platform services. 

Grab has also recognised that through the proposed acquisition, it will likely be able to significantly save on the incentives that it would have to pay to drivers as compared to if it employed alternative means to increase driver supply.

Nonetheless, CCCS is welcoming both parties to address the competition concerns raised before the commission makes its final decision about the merger.

Grab first announced its interest to acquire Trans-cab via its GrabRentals arm in July 2023, with initial feedback from the public regarding the merger happening a month later. Initial concerns about the merger have already been manifested by the agency since last year, considering it will make Grab becoming the dominant ride-hailing company in Singapore, discouraging competition.

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.”

Singapore – The Competition and Consumer Commission of Singapore (CCCS) has ordered water filtration brand Purexygen to remove its misleading claims and review its own marketing practices amidst public outcry on the brand’s claims that its water filters were tested by testing bodies in the sales kit, and were used by its salespersons in their sales pitches to consumers.

In a statement by the CCCS, the competition watchdog had mentioned that it had issued warnings to Purexygen and its directors regarding the unfair practices. CCCS will take action if Purexygen or their directors breach the undertakings or engage in any other unfair practices.

Moreover, CCCS said that following their investigation, Purexygen has taken active steps to make changes to their business practices to ensure compliance with the Consumer Protection (Fair Trading) Act 2003 (CPFTA).

Some of these changes include the removal of false claims from Purexygen’s sales kit, misleading promotion listings on Carousell, and misleading claims on the health benefits of alkaline or filtered water from its website, Facebook and Instagram pages, and providing the outstanding sets of water filters to the consumer.

Sia Aik Kor, chief executive at CCCS, said, “Suppliers in the water filtration system industry are reminded to review their marketing materials to ensure that any claims made to consumers are clear, accurate and substantiated. Suppliers should also review their business practices from time to time to ensure that such practices do not amount to unfair practices. Under the CPFTA, CCCS can seek court orders against errant suppliers who persist in unfair practices.”

Purexygen came under fire after it made misleading claims on the health benefits of alkaline or filtered water on Purexygen’s website, Facebook and Instagram pages including claims that alkaline or filtered water can help prevent health conditions such as osteoporosis, acid reflux, blood pressure conditions and diabetes.

Moreover, public outcry also noted that the brand misrepresented its water faucet and water dispenser were free for a limited time in listings on Carousell, when the price benefit or advantage did not exist as the water faucet and water dispenser are provided to all Purexygen customers free of charge at all times.

Singapore – The Competition and Consumer Commission of Singapore has stated that the proposed Grab and Trans-cab raises competition mergers following its Phase 1 review. The competition initially opened public feedback on the merger around August this year.

According to the commission, they need to review the competition effects of the proposed acquisition in greater detail.

They added that the greater amount of feedback they received from notes on concerns on the effect of Grab’s ownership of the Trans-cab fleet on Trans-cab drivers’ usage of rival ride-hail platforms, and may raise barriers to expansion and entry for Grab’s rival ride-hail platforms, given the importance of scale in the ride-hail platform industry.

“At this stage, the parties may offer commitments to address the potential competition concerns of the proposed Acquisition raised by CCCS. Otherwise, CCCS will proceed to a more in-depth phase 2 review of the proposed acquisition upon CCCS’s receipt of the relevant documents from the parties. commitments may also be offered at any time during a phase 2 review,” they stated.

Grab announced that it is acquiring Trans-cab back in July this year, stating back then that the acquisition will cover Trans-cab’s taxi and car rental business, maintenance workshop, and fuel pump operations.