CCS takes action against PRISM+ for website features creating false urgency, inflated 'discounts'

The Competition and Consumer Commission of Singapore (CCS) has taken action against PRISM+, a Singapore-based electronics retailer, for using website design features that mislead consumers.

This include using fake countdown timers and misleading stock indicators to pressure consumers into purchases.

For instance, they would indicate "In Stock: Running Low" on certain product pages despite substantial inventory still being available, according to a media release by CCS.

“False urgency” by PRISM+

CCS said they identified multiple design features on PRISM+’s website that have the effect of "creating false urgency in order to pressure consumers into hasty purchases".

The problematic features include fake countdown timers such as messages stating “Popular items are selling fast! Purchase within the next [timer] minutes to secure stock and avoid losing out” that appeared on checkout pages.

However, these timers served no technical function, were not linked to any of PRISM+’s inventory systems and simply reset after reaching zero without affecting the checkout process, CCS said.

The website also had misleading stock indicators like "In Stock: Running Low".

For one product, this indicator was displayed even though monthly sales figures represented only 7 per cent of PRISM+’s total available stock, CCS noted.

In response, PRISM+ explained to CCS that the indicator “In Stock: Running Low” is used for any product with inventory levels above 100 units.

However, this threshold was not clearly disclosed to consumers, CCS said.

There were also unsubstantiated shortage claims and statements on the website like “While other brands are all out-of-stock due to supply chain disruption…”, and “There’s an industry-wide shortage and all brands are sold out completely…”.

CCS said PRISM+ could not substantiate such statements and claimed that statements were made in the context of the Covid-19 pandemic when questioned.

In addition, CCS found that there were inflated discounts on the website.

For example, ten products had their discounts against the strikethrough price listed as “up to 67% off”.

However, CCS found that the maximum discount of 67 per cent was unachievable for these ten products as the actual discounts provided did not amount to 67 per cent of the undiscounted price of the products.

For one product, the discount only amounted to 38 per ent of the strikethrough price.

PRISM+ attributed this to technical errors during investigations.

The retailer has rectified these website issues and provided an undertaking to CCS that it will not engage in any unfair trade practices, CCS stated.

Advice to businesses

CCS said it is an unfair trade practice for businesses to charge for the supply of unsolicited products, or to make false or misleading claims to pressure consumers into making purchases under Singapore’s fair trading laws.

"Businesses should ensure that consumers agree to the purchase of any product and provide clear disclosure of the price and nature of any add-ons before checkout," they said.

Any statements made about products, including those on stock availability or price discounts, should be "truthful and factually accurate", they added.

"Countdown timers should only reflect genuine timelines given to consumers, while stock indicators should be genuine and reasonable," CCS said.

Tips for consumers

CCS also advised consumers to review their shopping cart for unexpected items, verify that payment amounts match intended purchases, and question the authenticity of urgency claims before making impulse purchases.

Consumers can refer to the CCS website for information on identifying and protecting themselves against various false and misleading website design features.

"CCS remains committed to ensuring fair, transparent and honest business practices in the digital space, enabling genuine competition amongst suppliers while empowering consumers to make informed decisions.”

Members of the public who would like to report cases of unfair trade practices by errant businesses may contact CASE at 6277 5100 (Mondays to Fridays, 9am to 5pm) or via https://crdcomplaints.azurewebsites.net/.

Statement from Prism+

In a statement, Prism+ said they acknowledged CCS findings regarding "a small number of legacy marketing practices" on their website.

"These included genuine unintentional errors in our internal stock metafields, legacy COVID-period shortage messaging that was not updated, and website-level discount claims that were not always aligned with specific product offers," they said.

Upon receiving the outreach from CCS, Prism+ said they "cooperated fully to respond, review, and amend" their website in line with CCS's guidance.

Prism+ said all required corrections were made swiftly within days and strengthened safeguards have since been implemented.

In addition, no recent customers have been affected by this, they said.

"Since May 2025, all prices and discounts displayed on our website accurately reflect the offers available (see Appendix A for example), and real-time stock availability is based on current inventory levels," they said.

They added:

"We are aligned with CCS and ASAS guidance and are fully committed to fair consumer practices.

Today, PRISM+ is focused on responsible stewardship of e-commerce in Singapore while delivering quality products at great value. We regret any concern caused to customers in the past and have strengthened our internal processes to uphold the highest standards of transparency.

Our customers deserve absolute clarity, and we take that responsibility seriously as a Singapore brand serving Singaporeans."

Top photos from Prism+/Facebook