ABC Bargain Centre, Valu$ and ABC Express outlets to cease “Closing Down Sale” and “Fire Sale” advertisements
Singapore , 16 October 2020
The owners and operators (the “Parties”) of “ABC Bargain Centre”, “Valu$”, and “ABC Express” retail outlets (collectively known as the “Retail Outlets”) have voluntarily undertaken to cease the use of “Closing Down Sale” and “Fire Sale” advertisements at all Retail Outlets, as of 30 September 2020.
The Parties approached the Competition and Consumer Commission of Singapore (“CCCS”) in 2019 to discuss certain advertisements in the Retail Outlets. Prior to approaching CCCS, advertisements bearing the language “Closing Down Sale” and “Fire Sale” were displayed at the Retail Outlets. 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 period of time. As the “Closing Down Sale” and “Fire Sale” advertisements were displayed continuously at the Retail Outlets without any end date, CCCS is of the view that such advertisements can mislead consumers into believing that there is a price benefit, and the benefit would only be available for a limited period. Advertisements which mislead consumers constitute an unfair practice in breach of the Consumer Protection (Fair Trading) Act (Cap. 52A).
The Parties have voluntarily undertaken to:
(a) Remove any and all advertisements containing the word “Fire Sale” at the Retail Outlets;
(b) Not advertise any products as being available at a discounted price for a limited period of time at the Retail Outlets, where the Parties know or ought to know that the products will continue to be so available for a substantially longer period, unless the Retail Outlet in question is genuinely ceasing operations; and
(c) 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.
For the undertaking and more information, please visit <>https://www.cccs.gov.sg/media-and-consultation/newsroom/media-releases/abc-bargain-centre-closing-down-sale.