Foodpanda warned for ‘misleading’ ad touting free delivery on all restaurants for subscribers
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The watchdog has issued a warning to Foodpanda for the unqualified, misleading adverts.
PHOTO: ST FILE
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SINGAPORE - Popular food delivery app foodpanda will fully refund users who subscribed to its Pandapro service between July 1 and Sept 30, after the competition watchdog deemed its advertisements during this period misleading.
Foodpanda’s campaign promised “unlimited free delivery on all restaurants” for users who purchased a Pandapro subscription, said the Competition and Consumer Commission of Singapore (CCCS) on Nov 20.
The plan was marketed as starting from $4.99 a month, with the first month to cost just a dollar.
However, subscribers received only a $3 discount for all restaurant delivery fees, or a discount of up to $6 for selected eateries, the commission said.
Following a complaint about the ad, CCCS’ investigation found that Pandapro subscribers still had to pay a delivery fee for more than 40 per cent of food delivery orders placed during the campaign period.
The watchdog has issued a warning to foodpanda for the unqualified, misleading advertisements, it said. These ran on foodpanda’s social media, on billboards, at bus stops and as a pop-up in the app.
CCCS said: “Without any qualifiers, (the ads) could mislead consumers into thinking that Pandapro subscribers would enjoy free delivery on all restaurants available on foodpanda.”
When making absolute claims like “free”, any qualifier, exclusion and incidental costs must be stated prominently, and a generic disclaimer like “terms and conditions apply” is not usually sufficient, it added.
The watchdog has issued a warning to Foodpanda for the unqualified, misleading adverts, it said.
PHOTOS: COMPETITION AND CONSUMER COMMISSION SINGAPORE
A foodpanda spokesperson said the terms and conditions attached to free delivery for Pandapro subscribers could have been communicated more clearly.
The brand is contacting all affected new Pandapro subscribers to offer refunds, “no questions asked”, and to better lay out the campaign’s terms, the company added.
It said: “We have since taken steps to improve our communication and ensure that all future campaigns are clear.”
CCCS chief executive Alvin Koh said it is not unreasonable for an average consumer to understand “free” to mean nothing will be charged.
“Transparent pricing is crucial for consumers to make informed purchases and to allow all businesses to compete fairly,” he said.
The commission has since closed the case against foodpanda.
To report unfair trade practices in advertisements, call 6461-1888 or visit
