Singapore: Issued ruling in CCCS investigation into Fashion Interactive for allegedly applying unfair trading practices by using "Subscription Traps"

On 6 January 2020, the State Courts order concerning a CCCS investigation into Fashion Interactive for allegedly applying unfair trading practices was issued. The Competition and Consumer Commission of Singapore (CCCS) applied to the State Court on 28 November 2019 to obtain an injunction against Fashion Interactive and its director to stop them from engaging in unfair practices called "subscription traps" on its e-commerce platform. A "subscription trap" is a practice by sellers to mislead consumers into signing up for a subscription by giving them the impression that they are only entering into a one-time purchase relationship. If consumers fail to cancel subscriptions, they will have recurring charges. CCCS' investigation concluded that Fashion Interactive did not sufficiently disclose information to consumers and thus misled them into entering into a subscription agreement with recurring monthly fees. The State Courts ruled that Fashion Interactive engaged in unfair trade practices violating the Consumer Protection (Fair Trading) Act. Consequently, they have been ordered to stop these practices starting from 6 January 2020.