E-Commerce Retailer Fashion Interactive Ordered to Cease Unfair Trade Practices and Stop Using “Subscription Traps”
Singapore , 17 January 2020
The State Courts have declared that Fashion Interactive Pte. Ltd. (“Fashion Interactive”), an e-commerce retailer selling shoes on its website (myglamorous.sg), and its director, Mr. Magaud Olivier Georges Albert (“Mr. Magaud”) have engaged in unfair trade practices under the Consumer Protection (Fair Trading) Act (Cap 52A) ( “CPFTA”), and ordered them to cease such practices. The Court Order takes effect from 6 January 2020.
The Competition and Consumer Commission of Singapore (“CCCS”) applied to the State Courts on 28 November 2019 to obtain an injunction against Fashion Interactive and its director, Mr. Magaud to stop them from engaging in an unfair practice known as a “subscription trap” on its shoes e-commerce website, myglamourous.sg.
A “subscription trap” is a practice by suppliers to mislead consumers into signing up for a recurring subscription by giving consumers the impression that they are only making a one-off purchase of goods and/or services. If consumers do not cancel such subscriptions, typically within a grace period, they would be liable for recurring charges.
The Court Order prohibits Fashion Interactive, whether by its directors, agents, employees or otherwise, from misleading consumers into signing up and/or continuing with a subscription service requiring payment or recurring payment. In addition, the Court Order prohibits Mr. Magaud from abetting Fashion Interactive in misleading the consumers into signing up and/or continuing with a subscription service requiring payment or recurring payment relating to online transactions or services, when it had appeared to the consumer that he was purchasing goods or products rather than services or recurring services.
For the Court Order and more information, please visit www.cccs.gov.sg/media-and-consultation/newsroom/media-releases/fashion-interactive-court-order-17-jan-2020.
