The Competition and Consumer Commission of Singapore (CCCS) has issued a warning to Delivery Hero ( Singapore ) Pte. Ltd., operating as Foodpanda, over false advertising for its Pandapro registration service.
The advertising, run during the period of 1 July to 30 September 2024, erroneously promoted “unlimited free shipping on all eateries”, leading to common problems and a subsequent research by the CCCS.
The ad appeared on several systems, including Instagram, in-app campaigns, and public posters.
When customers sign up for Pandapro, CCCS discovered that the word “unlimited free supply” could lead to falsehoods for customers.
In reality, subscribers received only a$ 3 discount on all restaurants or up to$ 6 on selected restaurants. After deals were applied, customers had to pay a residual shipping fee for more than 40 % of deliveries made during the marketing period.
CCCS analysis and results
CCCS began an exploration into the advertising claims after receiving a problem in August 2024.
The adverts failed to state that more charges does use, according to the investigation. Foodpanda acknowledged the concerns raised and agreed to take preventative activities, including:
- Customers who purchased subscriptions during the promotion time will receive full refunds of the fees.
- Clarifying the Pandapro membership terms for both clients and the general public.
- To confirm compliance with Singapore’s honest trading rules, reviewing both current and future marketing materials.
Although CCCS issued a warning at the conclusion of the case, it urged Foodpanda to take tougher protection measures if similar problems arise in upcoming advertisements.
Advice for businesses regarding promotion language
CCCS emphasised the importance of clarity when using words like “free” in advertisements. Images of$ 0 or “free” must be correct, with any semifinals or additional charges stated strongly. A vague caveat, like as “terms and problems apply”, is frequently inadequate.
It is not ridiculous for consumers to know that a company is offering “free” services in order to attract customers, according to CCCS CEO Alvin Koh.
He added that appropriate and factual statements are essential for making informed consumer choices and ensuring fair business rivals.
The Advertising Standards Authority of Singapore ( ASAS ) is urged by CCCS to report false advertising or unfair business practices to the organization. Complaints can be lodged online at https ://asas .org .sg/feedback/online-complaint or via phone at 6461 1888.
