Singapore: Closed CCCS investigation into Expedia Singapore concerning alleged false claims on validity period of "Daily Deals" promotions

On 12 November 2020, the Competition and Consumer Commission of Singapore (CCCS) closed the investigation into BEX Travel Asia Pte. Ltd., the operator of the Expedia Singapore website, for allegedly engaging in unfair practices under the Consumer Protection Fair Trading Act 2003 (CPFTA). The investigation was launched as a result of the CCCS market monitoring effort. The investigation addressed the "Daily Deals" promotions offered by BEX on the Expedia Singapore website and through electronic direct mailers to consumers who were subscribed to BEX's mailing lists. The daily deals were advertised as "Hot deals for 24 hours only!" that were to expire at 11:59 pm each day. The CCCS' investigation determined that there were at least 55 "Daily Deals" where the promotional prices remained the same even after 11.59 pm, contrary to the presentation that the deals would expire. CCCS concluded that false claims mislead consumers into believing that there is a price benefit which is only available for a limited period, therefore creating pressure and a sense of urgency for consumers to make an immediate purchase, which was considered an unfair practice under section 4(b) of the CPFTA. The result of the investigation is a warning issued to BREX for its breaches. BREX further proposed to comply with the CPFTA and to take steps to cease any unfair practices, to prevent conduct described in section 4(b) of the CPFTA from arising in relation to communication to consumers and promotions, to ensure that promotions are not communicated to the consumer as being available for a limited period event though the promotion is expected to remain available and to co-operate with CCCS to ensure that it complies with the CPFTA.