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Product Regulation & Liability

Singapore: CCCS issues warning to furniture retailer for posting fake five-star reviews

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In brief

On 21 June 2024, the Competition and Consumer Commission of Singapore (CCCS) issued a warning to a furniture retailer for publishing fake five-star product reviews on its website. Upon receiving complaints from customers, the CCCS launched an investigation and concluded that the retailer and two of its related companies posted the reviews. This constituted an unfair practice under the Consumer Protection (Fair Trading) Act 2003 (CPFTA).

The retailer has since admitted to posting said reviews, removed them from their website, and given an undertaking to CCCS to, amongst others, stop posting fake reviews and remove any more such reviews on its websites.

In more detail

Details of the incident

The fake reviews were posted between November 2022 and August 2023, and the CCCS began its investigation in October 2023 after receiving complaints from the retailer’s customers that reviews containing their initials and photos of the furniture in their homes were published on the retailer’s website without their knowledge. The CCCS found that fake five-star reviews on the retailer’s website appear to have been made by at least seven customers. The CCS found that only the retailer and its related companies had access to the relevant customers’ information and were in possession of the photographs used in the reviews.

The CCCS noted that posting fake reviews would constitute an unfair practice under the CPFTA as consumers may, as a result, be deceived or misled into thinking that the reviews were genuine.

To address the CCCS’ concerns, the retailer and its related entities provided undertakings to the CCCS to, amongst others, stop posting fake reviews, set up a feedback channel for customers to report fake reviews, and to remove reviews verified by CCCS or themselves to be fake. The retailer’s owners have also undertaken to the CCCS not to engage in any unfair practice under the CPFTA and not to cause any of the aforesaid entities to do so in future.

CCCS’ remarks

In the wake of this investigation, CCCS has stated that it will make fake or fabricated reviews an enforcement priority in the next few months, in view of the important role online reviews play in customers’ purchasing decisions.

Key takeaways

This case demonstrates CCCS’ continuing strict enforcement against errant companies for engaging in unfair practices in contravention of the CPFTA. If necessary, the CCCS can seek declarations and court injunctions against errant businesses. The court may also issue accompanying orders, such as requiring the business to notify its consumers about the declaration or injunction before entering into contracts with its consumers and include a statement about the declaration or injunction in every invoice or receipt. Failure to comply with the court’s order may result in an offence of contempt of court.

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Andy Leck is the head of the Intellectual Property and Technology (IPTech) Practice Group and a member of the Dispute Resolution Practice Group in Singapore. He is a core member of Baker McKenzie's regional IP practice and also leads the Myanmar IP Practice Group. Andy is recognised by reputable global industry and legal publications as a leader in his field. He was named on "The A-List: Singapore's Top 100 lawyers" by Asia Business Law Journal 2018. In addition, Chambers Asia Pacific notes that Andy is "a well-known IP practitioner who is highlighted for his record of handling major trade mark litigation, as well as commercial exploitation of IP rights in the media and technology sectors. He's been in the industry for a long time and has always been held in high regard. He is known to be very fair and is someone you would like to be in the trenches with you during negotiations." Furthermore, Asian Legal Business acknowledges Andy as a leading practitioner in his field and notes that he “always gives good, quick advice, [is] client-focused and has strong technical knowledge for his areas of practice.” Andy was appointed by the Intellectual Property Office of Singapore (IPOS) as an IP Adjudicator to hear disputes at IPOS for a two-year term from April 2021. He has been an appointed member of the Singapore Copyright Tribunal since May 2010 and a mediator with the WIPO Arbitration and Mediation Center. He is also appointed as a Notary Public & Commissioner for Oaths in Singapore. He previously served on the International Trademark Association’s Board of Directors and was a member of the executive committee.

Author

Ren Jun Lim is a principal with Baker McKenzie Wong & Leow. He represents local and international clients in both contentious and non-contentious intellectual property matters. He also advises on a full range of healthcare, as well as consumer goods-related legal and regulatory issues. Ren Jun co-leads Baker McKenzie Wong & Leow's Healthcare as well as Consumer Goods & Retail industry groups. He sits on the Law Society of Singapore IP Committee and on the Executive Committee of the Association of Information Security Professionals. He is also a member of the Vaccines Working Group, Singapore Association of Pharmaceutical Industries, a member of the International Trademark Association, as well as a member of the Regulatory Affairs Professionals Association. Ren Jun is ranked in the Silver tier for Individuals: Enforcement and Litigation and Individuals: Prosecution and Strategy, and a recommended lawyer for Individuals: Transactions by WTR 1000, 2020. He is also listed in Asia IP's Best 50 IP Expert, 2020, recognised as a Rising Star by Managing IP: IP Stars, 2019 and one of Singapore's 70 most influential lawyers aged 40 and under by Singapore Business Review, 2016. Ren Jun was acknowledged by WTR 1000 as a "trademark connoisseur who boasts supplementary knowledge of regulatory issues in the consumer products industry." He was also commended by clients for being "very responsive to enquiries and with a keen eye for detail, he is extremely hands-on. His meticulous and in-depth approach to strategising is key to the excellent outcomes we enjoy."

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