Singapore-based electronics and home appliances retailers Courts and Prism+ are facing legal actions taken by the country’s consumer watchdog over website features that mislead customers.
The Competition and Consumer Commission of Singapore (CCS) has found that Courts and Prism+ violated trading laws by either charging consumers for products they never selected or using certain website features that create false urgency in purchase.
Citing an investigation, the CCS said that Courts’ website had automatically added certain items to consumers’ carts without seeking their consent during certain promotions. The practice puts consumers at risk of unknowingly paying for the unsolicited items.
For example, an Acer vacuum cleaner was added to a consumer’s cart after that consumer selected an Apple iPad for purchase.
Despite receiving customer complaints early last year, the retailer made no changes until CCS intervened in June.
In a separate investigation, CCS identified multiple design features on Prism+’s website that pressure consumers into hasty purchases.
These features include fake countdown timers about product discounts that reset after reaching zero, misleading stock indicators falsely stating that products were ‘running low’, and inflated discounts.
According to CCS, such conducts of Courts and Prism+ are considered unfair trade practices under Singapore’s fair trading laws.
Courts has given an undertaking to cease this practice immediately, make changes to its website, and refund affected customers. Prism+ has also rectified its website issues and provided an undertaking that it will not engage in any unfair trade practices.
In a statement provided to Inside Retail, a Courts spokesperson said that the issue resulted from legacy marketing practices that were aligned with promotions in the chain’s physical stores. As part of these promotions, consumers were offered the option to purchase an additional item at a discounted rate after their purchase of an item.
After being made aware of the matter, the company has worked closely with the CCS and fully rectified the issue since September.
“We have also reviewed our website thoroughly to ensure all information are accurately displayed, so as to deliver a transparent shopping experience for customers and to minimise confusion,” the spokesperson said.
“We regret the impact this incident may have had on our customers and are fully committed to enhancing our consumer protection policies to prevent similar occurrences in the future.”
Further reading: Why Australian retailers are being fined for misleading promotions
