SINGAPORE:

Foodpanda, the popular food delivery service, has landed itself in hot water after being warned for a misleading advertisement related to its Pandapro subscription service. The Competition and Consumer Commission of Singapore (CCCS) issued a stern statement on November 20, highlighting concerns over a marketing campaign promising “unlimited free delivery on all restaurants.”

The eye-catching ad campaign, which ran from July 1 to September 30, was prominently featured across various platforms including Foodpanda's Instagram, in-app marketing, billboards, and public signage, including bus stops. However, following a complaint received in August, the CCCS initiated an investigation into the legitimacy of these claims.

The commission pointed out that without clear qualifiers, the ad could mislead consumers into believing that all restaurants available on Foodpanda would provide free delivery to Pandapro subscribers. In reality, subscribers were only entitled to discounts on delivery fees—S$3 for all restaurants and up to S$6 for selected ones—leaving many puzzled and disappointed when delivery fees still applied during their orders. Alarmingly, it was revealed that over 40% of transactions by Pandapro members during the campaign resulted in additional delivery fees despite the promised discounts.

Responding to the backlash, Foodpanda has acknowledged the CCCS's concerns and committed to providing full refunds to customers who subscribed to the service during the misleading advertising period. Moreover, the company pledged to clarify the subscription terms to all affected customers and the general public to prevent further confusion.

In an effort to comply with Singapore’s fair trading laws, Foodpanda will also reassess its marketing materials for the Pandapro service to ensure that future advertisements are transparent and truthful. The CCCS warned Foodpanda's parent company, Delivery Hero, that they would not shy away from implementing stricter enforcement actions if the company continues to engage in misleading advertisements.

In an official statement, Foodpanda admitted, "We acknowledge that the terms and conditions required for Pandapro subscribers to enjoy free delivery could have been communicated more clearly." The company is actively reaching out to all new subscribers who joined during the advertising period, offering refunds without requiring any explanation from the customers.

The CCCS emphasized the importance of honesty in marketing, stating that any representation claiming a service is “free” must not mislead consumers. They stressed that businesses should provide clear and direct information alongside promotional claims about pricing. Alvin Koh, the CCCS chief executive, voiced concerns about transparency in pricing and consumer trust, insisting that "accurate claims are critical for consumers to make informed purchases."

Support for the CCCS’s crackdown on misleading advertisements has also come from the Consumers Association of Singapore (CASE), whose president Melvin Yong encouraged anyone encountering deceptive advertising to report it to the Advertising Standards Authority of Singapore for review.

Foodpanda's current predicament serves as a wake-up call for delivery services and other businesses to exercise caution in their marketing strategies. Will this incident lead to stricter regulations for online food delivery services? Only time will tell, but for now, customers have been left questioning the integrity of promotional offers that seem too good to be true!