Consumer competition watchdog issues warning to bedding company over misleading marketing practices
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Hotel Bed Company have been warned for using logos and Trustpilot ratings in a manner that misleads consumers.
PHOTO: SCREENGRAB FROM HOTEL BED COMPANY'S WEBSITE
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SINGAPORE – The operators of Hotel Bed Company have been warned by the Competition and Consumer Commission of Singapore (CCS) for using logos and Trustpilot ratings in a manner that misleads consumers.
The consumer competition watchdog launched its investigations in March after receiving a complaint about misleading marketing practices by mattress sellers here, said the CCS in a release on Nov 20.
Its investigation revealed that Hotel Bed Company, which supplies mattresses, sofa beds, bedsheets and pillows to hotels in Singapore, displayed logos on its website and online platforms with statements such as “Hotelier Standard For Excellence” and “Hospitality Standards”.
The CCS said these statements created the false impression that they were official industry standards, even though no such official standard exists.
Additionally, a 4½-star Trustpilot rating was displayed on the company’s website and online platforms. Trustpilot is an online review platform where consumers can share reviews and ratings of businesses.
CCS said it discovered that there was no active account for Hotel Bed Company on Trustpilot.
The watchdog added that the displayed rating was based primarily on reviews that the business had written itself.
The logos were created and first displayed on the company’s platforms by its former owner, H&S. It also displayed the Trustpilot rating based on an account that was inactive.
In January, H&S sold the brand to its present owner, Adcasa.
CCS said that Adcasa did not check the accuracy of the logos and Trustpilot rating after acquiring the brand and continued to display them.
CCS said it issued warnings to H&S for initiating the conduct and to Adcasa for continuing the conduct after acquiring the business.
It added that Adcasa has agreed to remove the misleading logos and the Trustpilot rating.
The consumer competition watchdog said: “This case highlights broader concerns about misleading marketing practices for mattresses in Singapore
“Specifically that certain businesses may market their mattresses as ‘hospitality’, ‘hotel’ or ‘orthopaedic’ grade that may give consumers the false impression that they meet certain official standards when they do not.”
It encouraged consumers to consider these marketing claims with care and to ask the businesses concerned for more information if needed.
Consumers can ask businesses for the specific standards the product meets, supporting documents of such claims and warranty or guarantee that the business can offer regarding the claimed standard.
They are also encouraged to compare prices across different retailers and time periods, test products in-store where possible and carefully review warranty and return policies.
CCS chief executive Alvin Koh said: “CCS has recently released a guide on quality-related claims which I hope consumers can familiarise themselves with so they are better aware about false marketing claims and misleading representations.
“Consumers can then avoid buying products that do not meet their needs.”
The Straits Times has contacted Hotel Bed Company for more information.
