The Competition and Consumer Commission of Singapore (“CCCS”), which oversees consumer protection and anti-competition practices in Singapore, has published a set of guidelines on how suppliers should transparently and accurately price their products so as not to mislead consumers.
Overview of Singapore’s consumer protection laws
The Consumer Protection (Fair Trading) Act (“CPFTA”) is Singapore’s main consumer protection legislation, which is administered by the CCCS.
Under section 4 of the CPFTA, suppliers are prohibited from “unfair practices”, which include acts where a supplier:
Guidelines on Price Transparency
The Guidelines on Price Transparency (“Guidelines”) outline how CCCS would enforce the CPFTA in relation to a supplier's pricing practices. It highlights infringing conduct and specifies measures that suppliers should take to ensure their pricing practices are not misleading and in compliance with consumer protection law.
The Guidelines will be effective from 1 November 2020 and will apply to all suppliers, whether operating online or in physical stores.
Some key points in the Guidelines are available here.
Conclusion
The Guidelines follow from CCCS’s findings from a market study it conducted on the online travel booking industry in Singapore, which highlighted consumer protection concerns in the areas above. Prior to the release of the Guidelines, CCCS had also investigated a local eatery in 2019 for its misleading marketing practices. The eatery promoted that their discounted meals were available “for a limited period only” or would be “Ending Soon! 50% Discount” when they continued to be available for at least 2 more years.
The Guidelines are useful in outlining the ‘dos’ and ‘don’ts’ for suppliers when they implement their pricing strategies. Suppliers will need to be cautious when pricing their products, and should review their current pricing or marketing structure to ensure they comply with the Guidelines.
This article is produced by our Singapore office, Bird & Bird ATMD LLP, and does not constitute legal advice. It is intended to provide general information only. Please contact our lawyers if you have any specific queries.