Stores in Singapore with "closing down sales" that never seem to end, will likely come to an end.

This is because it potentially breaches the Consumer Protection (Fair Trading) Act, which states that it is an “unfair practice to represent that goods or services are available at a discounted price for a stated period of time if the supplier knows or ought to know that the goods and services will continue to be so available for a substantially longer period”.

Developing guidelines for price transparency

On Sept. 2, The Straits Times reported that the Competition and Consumer Commission of Singapore (CCCS) is developing a set of guidelines on price transparency.

These guidelines will regulate practices on discounts, offers and price comparisons, effectively putting an end to the closing down sale gimmick.

More details will be released in the next few months.

Complaint against ABC Bargain Centre

Earlier in August this year, an eatery in Singapore was investigated for having a "limited time" discount without any end date.

The eatery was subsequently asked to stop the unfair practice.

The Consumers Association of Singapore also reportedly received a complaint during the period of January 2017 to June 2019 that the ABC Bargain Centre was making "misleading claims".

In response to ST queries, Naraindas Gangaram, the owner of Radha Exports, which founded the ABC Bargain Centre, said their stores no longer use the "closing down" signs.

Naraindas also explained that the "Fire sale! Everything must go!" signs suggested that the items are being sold at huge discounts.

However, he said that he is prepared to make changes if the CCCS requires it.

Top photo composite image, photos by Rachel Ng.

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