Sterra said China-made water purifier was ‘Korean’, offered false discounts, apologises after CCCS probe

UPDATE on Aug. 30 at 2:58pm: The article has been updated with a statement from PUB.

Sterra Tech Pte. Ltd has issued a public apology and provided an undertaking to the Competition and Consumer Commission of Singapore (CCCS) that it will cease making false and misleading claims on the quality of Singapore’s tap water, as well as other claims relating to its air and water purifiers, according to a press release issued by CCCS on Aug. 30, 2024. 

Sterra is a Singaporean brand, known for its air and water purifiers.

Sterra ad used beach water to mislead about Singapore's tap water safety: CCCS

CCCS said that it initiated the investigation under its fair trading laws after it received complaints on an online advertisement run by Sterra in February 2024, which falsely claimed that Singapore’s tap water is unsafe for direct consumption.

CCCS said that while the advertisement claimed to show a microscopic view of Singapore’s tap water, it was in fact showing footage of beach water to mislead the viewer into forming the impression that Singapore’s tap water contains harmful microorganisms like bacteria and algae.

The advertisement also falsely claimed that footage of clean water seen under a microscope was filtered by a Sterra water purifier when it was, in fact, footage of bottled water. 

PUB had previously issued an advisory to Sterra in response to the advertisement, noting its "misleading claims".

The advertisement was initially flagged up by Clarence Sim, a PhD student at the Genomics and Ecology of EuKaryotes (GEEK) Lab at Nanyang Technological University's Asian School of the Environment, who posted an Instagram video on Feb. 1, debunking claims made in Sterra's Facebook advertisement.

CCCS in its press release noted its appreciation for Sim, who called out Sterra’s misleading advertisement.

"While CCCS will continue to monitor the industry, consumers must also remain vigilant and conduct their own research before making any purchasing decision," CCCS said.

Tap water in Singapore is safe to drink: PUB

PUB also issued a statement on Facebook on Aug. 30:

"PUB will not condone any false or misleading claims made by companies like Sterra to promote their products. Such claims could impact public confidence in Singapore’s drinking water."

PUB noted that Sterra had attempted to mislead the public into thinking that Singapore's tap water contains harmful micro-organisms such as bacteria and algae.

Misleading labels & false discounts

CCCS, upon further investigations, discovered several other false and misleading claims made by Sterra on its website between February 2023 and March 2024.

These include misleading labels and false discounts.

Here are the false claims highlighted by CCCS:

• False country of manufacture claims: Three models of air purifier sold by Sterra claimed to be made in Singapore were in fact made in China
• Misleading "Korean" labelling: Two models of Sterra's water purifiers were marketed as Korean when they were neither sourced from nor manufactured in Korea, but were in fact manufactured in China
• False discounts: The "usual", so-called pre-discount prices listed by Sterra for comparison with the product's discounted prices were not genuine previous prices and, in fact, never offered to any customer.

Sterra apologises

Following the investigation, Sterra gave an unequivocal apology and provided an undertaking to CCCS that it will, amongst others:

• Stop its unfair trade practices and put in place an internal compliance policy to ensure that its marketing materials comply with fair trading laws
• Put up a public apology in relation to its Advertisement on its website and social media channels for 30 days
• Cooperate with the Advertising Standards Authority of Singapore (ASAS) and Singapore public agencies including PUB, Singapore’s National Water Agency to resolve all complaints by consumers and publish clarifications in relation to any advertisements that are found to be misleading by ASAS or the public agencies.

Sterra also posted the following apology to its website:

"Following the outcome of investigations conducted by the Competition and Consumer Commission of Singapore (CCCS), Sterra apologises for a Facebook advertisement published in February 2024 that misled cosumers into thinking that Singapore tap water is unsafe for consumption without using our water purifier.

Moving forward, we are committed not to publish false or misleading ads, including those in relation to the quality of Singapore tap water. We value our customers and will continue to work on providing the best for them.

We thank the CCCS and national water agency PUB for alerting us of their concerns and the opportunity to make things right."

Sterra’s directors, Lim Liangzhi and Lim Wei Hou, also gave personal undertakings to CCCS that they will not engage in any unfair trade practice, or facilitate Sterra to do so in future.

CCCS’s Chief Executive, Alvin Koh, said:

"CCCS takes a firm stance against businesses that make false or misleading claims in their marketing.

Such practices hinder the ability of consumers to make informed decisions, which is essential for well-functioning markets.

They also erode consumer trust and undermines the ability of honest businesses to compete on a level playing field."

Top photo from Sterra.