ABC Bargain Centre, Valu$ and ABC Express outlets to cease “Closing Down Sale” and “Fire Sale” advertisements

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 from 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) (“CPFTA”).

In accepting the Parties’ voluntary undertakings, CCCS has noted the Parties’ co-operation to ensure that its advertising practices comply with the CPFTA. However, CCCS reserves the right to investigate any breach of the undertakings or any other unfair practices by the Parties.

Please refer to the media release for more information.

Resources:

Infographic Closing Down and Fire Sale Ads