From Sep. 30, 2020, the owners and operators of ABC Bargain Centre, Valu$ and ABC Express retail outlets have voluntarily stopped using "Closing Down Sale" and "Fire Sale" advertisements.

In a statement from the Competition and Consumer Commission of Singapore (CCCS) on Oct. 16, they promised to:

• Remove any and all advertisements containing the word “Fire Sale” at the retail outlets.
• Not advertise any products as being available at a discounted price for a limited period of time at the retail outlets if the owners know the products will be available for a longer time, unless the outlet in question is genuinely ceasing operations.
• Not advertise products as being available at a discounted price at the retail outlets, where no genuine price benefit or advantage underlying the advertisement exists.

Certain retail outlets are operated by franchisees, so the owners pledged to notify them to make sure they comply with the above-mentioned obligations.

Potentially misleading for customers

CCCS said that advertisements bearing such language convey the impression that the reason for the discounted price is due to impending closure of the business, and that the discounted price would only be available for a limited time.

This, CCCS said, could mislead customers into believing that there is a price benefit within a limited time.

It added: "Advertisements which mislead consumers constitute an unfair practice in breach of the Consumer Protection (Fair Trading) Act (Cap. 52A) (“CPFTA”)."

CCCS also said: "In accepting the parties’ voluntary undertakings, CCCS has noted the parties’ cooperation to ensure that its advertising practices comply with the CPFTA. However, CCCS reserves the right to investigate any breach of the undertakings or any other unfair practices by the parties."

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