Loft Home Furnishing Caught Posting Fake Customer Reviews

21 June 2024

1. An investigation by the Competition and Consumer Commission of Singapore (“CCCS”) revealed that Loft Home Furnishing Pte. Ltd. (“Loft Home Furnishing”) had published fake 5-star reviews of products on its website at https://lofthome.com (“Website”) between November 2022 and August 2023.

2. In October 2023, CCCS commenced an investigation under the Consumer Protection (Fair Trading) Act 2003 (“CPFTA”) against Loft Home Furnishing, after receiving complaints from its customers. The complainants alleged that reviews containing their initials were posted on the Website without their knowledge. The reviews gave glowing recommendations on the quality of the purchased furniture, and contained actual photos of the furniture displayed in the customers’ homes. During the investigation, CCCS found fake 5-star reviews on the Website that appeared to be made by at least seven customers.

3. CCCS concluded that Loft Home Furnishing and two of its related businesses, Loft Home Furniture and Loft Industries Pte. Ltd. (collectively referred to as the “Loft Home Entities”), were responsible for posting the fake 5-star reviews. Investigations revealed that only they had access to the customers’ information and were in possession of the photos used in the reviews.

4. The posting of a fake review by a business in relation to a consumer transaction is an unfair trade practice as consumers might be deceived or misled into thinking that the review was genuine. Loft Home Furnishing has also admitted to have engaged in such an unfair trade practice.

5. Following CCCS’s investigation, the Loft Home Entities have given an undertaking to CCCS that they will, amongst other things:

(a) Stop posting fake reviews;

(b) Set up a feedback channel for customers to report any fake reviews on the Website or any other website that may be owned or operated by Loft Home Entities;

(c) Inform and invite previous customers who made purchases between November 2022 and August 2023, and future customers who are asked to leave a review, to report any fake reviews made on the Website in respect of their purchases; and

(d) Remove reviews which have been verified by either CCCS or themselves to be fake.

6. Sui Luyang and Wang Lei, who own the Loft Home Entities, have similarly given undertakings to CCCS that they will not engage in any unfair trade practice under the CPFTA, or cause any of the Loft Home Entities to do so in future.

7. In closing the case, CCCS has accepted the undertakings and issued warnings to the Loft Home Entities, and its business owners, regarding the fake reviews. CCCS will take action if Loft Home Entities or its business owners breach the undertakings or engage in any unfair trade practice. Loft Home Furnishing has since removed the fake reviews identified during the investigation.

Advice to Consumers

8. Consumers are advised to always exercise caution when relying on reviews to make their transactions. Consumers can use a set of tips developed by CCCS, provided in the enclosed infographic, to spot fake reviews and avoid being misled.

9. “Today, online reviews play an important role in helping consumers make purchasing decisions. These reviews can shape customers’ perception of a brand and its products, and when businesses fabricate reviews to make themselves look good, consumers may be misled into making purchases. CCCS will make this an area of enforcement priority in the coming months, and will continue to take action against businesses who engage in such unscrupulous acts”, said CCCS’s Chief Executive, Mr. Alvin Koh.

10. Consumers who encounter unfair practices under the CPFTA can approach CASE for assistance. For more information, please visit www.case.org.sg or call 6277 5100.

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Encl. Infographic: Consumer Tips for Online Reviews

About the Competition and Consumer Commission of Singapore

The Competition and Consumer Commission of Singapore (“CCCS”) is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Competition Act 2004 which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act 2003 or (“CPFTA”) which protects consumers against unfair trade practices in Singapore. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

For more information, please visit www.cccs.gov.sg.