Case, CCCS warn of misleading claims by some overseas sellers

Consumers have been warned to take precautions when making online purchases after reports have surfaced of online overseas retailers misleading consumers into buying products.

Some common tactics include advertisements claiming the retailer has a presence in Singapore. The URL of the retailer's website could also deliberately contain the abbreviation "sg" to give that impression.

In a joint advisory yesterday, the Consumers Association of Singapore (Case) and the Competition and Consumer Commission of Singapore (CCCS) said that from January last year to Aug 2 this year, Case received 52 complaints related to transactions involving overseas sellers.

The advisory said: "Attempts to get a refund of money paid to such online retailers may be difficult as they may not have any presence in Singapore. Consumers are advised to adopt certain precautions in order to minimise the risk of falling prey to some of these tactics."

Errant retailers may also include claims about a product in their advertisements or websites, including those related to the product's quality, country of origin or the accreditation it received.

"The product eventually delivered may turn out to be different," said Case and CCCS.

Other tactics used include seemingly large discounts where retailers advertise extremely low prices, citing reasons such as warehouse clearance, when these discounts may not be genuine.

The advisory comes amid an e-commerce boom, with online sales here hitting an estimated US$8 billion (S$10.75 billion) this year, according to a report by Facebook and management consultancy Bain & Company.

The report, released on Tuesday, also said e-commerce sales in Singapore are expected to grow to US$10 billion by the end of 2026.

Case and CCCS said in their advisory that some overseas sellers may attempt to mislead consumers by giving them fictitious contact information to seek refunds. The sellers may also claim to have products recognised by accredited bodies.

Case and CCCS said buyers should check against the accreditation a product is said to have received, for example, by verifying the authenticity against official sources like the website of the organisation that purportedly issued the award.

Consumers can also verify if the retailer is based in Singapore through the BizFile+ portal maintained by the Accounting and Corporate Regulatory Authority.

Escrow payments should also be opted for, where possible. This is when a third party releases the money to the retailer only after certain conditions are met.

When making a purchase, a padlock symbol on the address bar would indicate that the connection is encrypted.

Mr Samuel Tan, head of the Smart e-Commerce Centre at Temasek Polytechnic, said consumers are usually attracted to the marketing and illustration of these online offers. He said: "The 'fear of missing out' mentality will kick in, especially when there is limited quantity and tight deadlines."

Ms Megan Ong, director of Nanyang Polytechnic's Singapore Institute of Retail Studies, has this advice for consumers: "Make it difficult for these retailers to continue their practices, write bad reviews backed up with proof, and send complaints to the online platforms that hosted them."