Update at 1420 Hrs: Channel NewsAsia reported that both M1 and StarHub have accepted Singtel's apology. An M1 spokesman said that it accepts Singtel's apology, and "will not be taking further action", while StarHub CEO Tan Tong Hai said: "We note and accept Singtel Group CEO’s apology".
If you think the whole "Xiaxue Gushcloud exposé 2" is just another bloggers' spat between a few self-engrossed and immature "influencers", think again.
The whole saga that involves ethics violation in the online advertising industry has led to an apology by the Singtel Group CEO, an investigation by the authorities, the termination of a Singtel staff, the irreparable brand damage to blogger advertising network Gushcloud and possible legal action by StarHub.
We recap the six days that culminated in the apology by the Singtel CEO.
Day 1 (Mar. 14)
1. Blogger Xiaxue came out with Gushcloud exposé 2
Xiaxue, a blogger from rival blogger network Nuffnang, shared the second part of her big Gushcloud exposé, “The Big Gushcloud Exposé 2" and revealed that Gushcloud provided instructions to their bloggers to slime telcos M1 and StarHub as part of their blogging services to promote Singtel’s new mobile plan for youths in June 2014.
Incidentally, it was Nuffnang's 8th birthday on the same day Xiaxue shared the exposé.
2. Gushcloud provided a brief reply but focused on 7 August being a public holiday instead.
Day 2 (Mar. 15)
3. Telco Singtel said it did not issue brief to smear its competitors
Singtel said it was not their "practice to run negative campaigns against any individual or organization".
4. Gushcloud-affiliated sites downplayed saga.
Must Share News, a website co-owned by Gushcloud, questions Xiaxue’s motives for her exposé, downplays saga.
Vulcan Post, a so-called technology portal that received a six-figure funding from Gushcloud, did not mention the exposé even though it covered the first exposé extensively.
Day 3 (Mar. 16)
5. M1 and StarHub requested Infocomm Development Authority (IDA) to look into Gushcloud bloggers’ smear campaign
M1 Spokesperson: "We will also request IDA to look into this pursuant to the Telecom Competition Code, and will explore further action if necessary.”
StarHub Spokesperson: "We are deeply disturbed by the tactics employed and the possible damage to our brand".
6. IDA replied
IDA Spokesperson: "Operators should abide by the Singapore Code of Advertising Practice when conducting marketing activities".
Day 4 (Mar. 17)
7. Both Singtel and Gushcloud apologised for shoddy marketing practices
Johan Buse, VP of Consumer Marketing, Singtel: "Further investigations have revealed that our staff who worked with Gushcloud on the marketing campaign in June last year did not adhere to Singtel’s marketing standards...We apologise for this isolated incident".
Vincent Ha, CEO, Gushcloud: "[W]e have let our influencers and our client down with the way the campaign turned out and we are sorry. It goes against the management’s belief to use the Internet for spreading negative messages about anybody or organisation".
IDA Spokesperson: "IDA is investigating the matter".
Day 5 (Mar. 18)
8. Gushcloud bloggers apologised for posting negative comments
Blogger Xavier Ong, 20, apologised to "anyone affected for posting negative comments towards M1 (while on a SingTel campaign) and not explicitly stating or revealing that I was on a campaign with SingTel". But he said that he did not "lie".
Eunice Annabel Lim, 21, also apologised. She said, " I admit my mistake, apologise and strive to do better next time". She added that she didn't think what she did was wrong and that "the techniques used in the campaign were wrong".
Day 6 (Mar. 19)
9. Starhub explored taking legal action against Singtel
The Straits Times reported that StarHub is assessing their legal options, while M1 said that it "will explore further action if necessary".
10. Singtel Group CEO apologised
Singtel CEO says sorry to M1 & StarHub and fires Gushcloud
Chua Sock Koong, Singtel group CEO, said “We regret that a Singtel employee who worked on this campaign did not adhere to our professional standards and values. We have since terminated the services of the agency and the employee is no longer with us...The senior management and I apologise, in particular to M1 and Starhub, that our actions in this incident did not live up to our high standards and values."
Gushcloud CEO Vincent Ha told TODAY that "as the client's agency, we should have known better".
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