Food delivery platform Foodpanda has been warned for a misleading advertisement for its Pandapro subscription service, stated the Competition and Consumer Commission of Singapore (CCCS) on Wednesday. The advertisement claimed to offer “unlimited free delivery on all restaurants” and was featured on various platforms including Foodpanda’s Instagram page, in-app marketing, billboards, and public areas such as bus stops.
CCCS initiated an investigation in August after receiving a complaint about the ad. The commission expressed concern about the misleading nature of the promotion, stating, “Without any qualifiers, it could mislead consumers into thinking that Pandapro subscribers would enjoy free delivery on all restaurants available on Foodpanda.”
According to the CCCS, Pandapro subscribers would only receive a discount of S$3 on delivery fees for all restaurants, with the discount going up to S$6 for selected restaurants. It was revealed that over 40% of food delivery transactions made by Pandapro subscribers during the ad campaign period required an additional delivery fee despite the promised free delivery.
Following CCCS’s findings, Foodpanda has agreed to provide a full refund of subscription fees to customers who subscribed to Pandapro during the advertising period and offer clarification on the terms of its subscription. Foodpanda will also review its marketing materials to ensure compliance with fair trading laws in Singapore. Although CCCS issued a warning to Foodpanda’s parent company, Delivery Hero, it emphasized that stronger enforcement actions can be taken if misleading advertisements persist.
In response to inquiries, Foodpanda admitted that there could have been clearer communication regarding the terms and conditions for Pandapro subscribers. The company has taken steps to enhance communication and clarity for future campaigns, saying, “We have since taken steps to improve our communication and ensure that all future campaigns are clear.”
CCCS highlighted the importance of accurate representation of pricing and free services in advertising, emphasizing that any claims of free goods or services must be clearly and unambiguously stated. According to CCCS chief executive Alvin Koh, businesses must ensure transparency in pricing to enable consumers to make informed decisions and ensure fair competition in the market.
The Consumers Association of Singapore (CASE) supported CCCS’s actions against misleading advertisements, urging consumers to report such cases to the Advertising Standards Authority of Singapore.
