foodpanda to Refund Users Who Subscribed to pandapro From 1 Jul to 30 Sep Due To Misleading Ad

By
Champa Ha
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Sometimes you can accidentally fall prey to a misleading ad.

It can happen due to a myriad of reasons. Overzealous copywriters, for one. Maybe a misdirect from Marketing. Maybe misleading language, or maybe the design of the ad was not clear enough to display the Terms and Conditions.

That might be some of the reasons why food delivery platform foodpanda has been issued a warning regarding an advert that misleads viewers on their new pandapro subscription service.

This warning was issued by the Competition and Consumer Commission of Singapore (CCCS), which was announced in a press release dated 20 Nov.

In the statement, CCCS has said that while the foodpanda ad promised “unlimited free delivery on all restaurants” for pandapro subscribers, more than 40% of their transactions still involved a residual delivery fee.

CCCS found that subscribers of pandapro only received a S$3 discount on their food delivery fees for all restaurants.

Selected restaurants received a discount of $6.

40% of food delivery transactions that were made by pandapro subscribers during the time period required a residual delivery fee that was paid after the discounts were applied.

The ad was released and displayed across multiple platforms from 1 Jul to 30 Sep. Thís included foodpanda’s app, their social media pages, and public signs.

CCCS was alerted to the misleading ad about pandapro after a complaint was received in August this year.

“Without any qualifiers, it could mislead consumers into thinking that pandapro subscribers would enjoy free delivery on all restaurants available on foodpanda,” CCCS said.

What foodpanda Said

foodpanda, following the investigation, has acknowledged CCCS’ concern and will be providing a full refund of subscription fees to subscribers who signed up for pandapro from 1 Jul to 30 Sep.

foodpanda will also be clarifying to subscribers and members of the public on the terms behind the pandapro subscription, said CCCS.

The platform will be reviewing existing and future marketing materials so that the subscription will ensure compliance with Singapore’s fair trading laws.

A spokesperson for foodpanda has shared that the company has “taken steps to improve our communication and ensure that all future campaigns are clear.” The spokesperson added that they remain committed to listening to their customers and delivering the best possible service.

The commission, in the press release, is reminding businesses that they must ensure that there is no false or misleading representation about the price of its goods or services when advertising something as “S$0” or “free”.

Any qualifiers, exclusions or incidental costs must be stated prominently together with the “S$0” or “free” claim, CCCS added.

Generic disclaimers such as “terms and conditions apply”, CCCS reiterated, are not usually sufficient.

“When a business offers ‘free’ services to entice the consumer, it is not unreasonable for an average customer to understand that a ‘free’ service means that nothing will be charged,” explained Alvin Koh, Chief Executive at CCCS.

“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,” Koh added.

Members of the public that see similar cases of unfair trade practices in ad should contact the Advertising Standards Authority of Singapore (ASAS) at https://asas.org.sg/feedback/online-complaint.

Alternatively, they can be contacted at 6461 1888.

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Champa Ha