MPs question if interactive pressure tactics during livestreams considered unfair trade practices

MPs Shawn Loh and Alex Yeo raised questions on the validity of pressure tactics during livestreams.

Loh asked the Minister for Trade and Industry (Energy and Industry) whether the Competition and Consumer Commission of Singapore (CCS) could review whether interactive pressure tactics during live-stream broadcasts, such as manipulated real-time stock counters, flash countdowns, and automated social proof notifications, fall under actionable dark patterns and unfair trade practices under the Consumer Protection (Fair Trading) Act 2003.

Yeo also asked whether, given the time-compressed decision-making for consumers during livestreams, enforcement actions, similar to those against online retailers using misleading features, will be used against these types of livestream sellers.

He also asked if there will be further consumer protection measures, such as extending a mandatory cooling-off period.

In his written reply, Minister for Trade and Industry (Energy and Industry) Tan See Leng said it is unfair practice for a business to make false or misleading representations, or exert undue pressure on a consumer to enter into any transaction in both physical and online settings, including livestream broadcasts.

He said the usage of urgency cues by livestream sellers is not, by itself, an unfair practice.

Tan noted in his reply that features such as stock counters, countdown timers and social proof notifications may serve legitimate commercial purposes by informing consumers about stock availability, time-limited promotions or purchasing activity.

Whether a particular feature is an unfair practice depends on the specific facts and circumstances, including whether the urgency is genuine and whether the information presented is false or misleading.

Consumers who have encountered potential unfair practices in livestream commerce should approach the Consumers Association of Singapore (CASE) for assistance.

Tan said the government will also work with CASE to raise consumer awareness of unfair practices and help them to make more informed decisions.

He also said that businesses and marketers, including livestreamers, should take note and abide by the Singapore Code of Advertising Practice, issued by the Advertising Standards Authority of Singapore (ASAS) under CASE.