SINGAPORE - Food Delivery Service in Hot Water

In a significant move, popular food delivery service Foodpanda is compelled to fully refund users who subscribed to its Pandapro service between July 1 and September 30. This decision comes after the Competition and Consumer Commission of Singapore (CCCS) criticized the company's advertisements as misleading.

Promotional Campaign Advertised As 'Free'

Foodpanda's promotional campaign boasted of "unlimited free delivery on all restaurants" for those who purchased a Pandapro subscription, which was advertised as starting at an attractive price of $4.99 per month, with the first month costing just $1. However, in reality, subscribers only received a meager $3 discount on delivery fees for most restaurants, and a maximum discount of $6 on select eateries.

Investigation Reveals Misleading Practices

An investigation led by the CCCS revealed that more than 40% of food orders made by Pandapro subscribers during the promotional period still incurred delivery costs, contradicting the promised “free delivery” claim. Following consumer complaints, the CCCS acted swiftly, warning Foodpanda about the misleading nature of its advertisements that plastered social media, billboards, and even pop-up notifications within the app.

CCCS's Take on the Situation

According to CCCS, the lack of qualifiers in the ads could easily mislead consumers into believing they would enjoy completely free delivery across the platform. CCCS highlighted that when companies make absolute claims like "free," they must clearly outline any exclusions or additional charges, warning that simple disclaimers like "terms and conditions apply" often fall short.

Foodpanda's Response and Future Commitments

In response, a Foodpanda spokesperson acknowledged the oversight, stating that the terms associated with free delivery should have been communicated more effectively. The company has since reached out to all affected Pandapro subscribers to offer refunds without any strings attached and has committed to clearer communications in future marketing efforts.

Importance of Transparent Pricing

Emphasizing the importance of transparent pricing, CCCS Chief Executive Alvin Koh underscored that it is entirely reasonable for consumers to interpret "free" as meaning no charges would apply. He added, "Transparent pricing is crucial for consumers to make informed purchases and to ensure fair competition among businesses."

Conclusion and Reporting Unfair Practices

As the dust settles on this incident, the CCCS has formally closed the case against Foodpanda. This episode serves as a reminder to all businesses about the necessity of clear and honest advertising practices. For anyone concerned about unfair trade practices, the CCCS encourages them to report it by calling 6461-1888 or visiting their online complaint page.

Stay Updated!

Stay tuned for more updates on consumer rights and fair advertising practices, and learn how such incidents may shape the future of your favorite delivery services!