The Singapore Government is cracking down on retailers for a more equitable playing field for sellers across the board with the release of new rules.
These tougher guidelines cover drip pricing, price comparisons, discounts and improper use of terms like free that can be misleading.
The new rules have been laid down by the Competition and Consumer Commission of Singapore (CCCS) to educate retailers on right pricing strategies.
Coming into effect on 1 November, the regulatory body will apply the Consumer Protection (Fair Trading) Act, to make price transparency compulsory.
Retailers will have to disclose the break-up of the total price, including taxes, surcharge, service fees, etc., and provide an ‘opt-in’ approach for any add-ons that carry a price.
Discounts should also be clearly stated with any time limits and should demonstrate an actual drop from a previous selling price of the item.
Free items should carry the price of SG $ 0 and consumers should be notified before the end of any free-trial period, any subsequent fees or cancellation procedure.
Price comparisons with competing retailers should be accurate and based on genuine research.
“Suppliers should ensure that their prices are represented accurately and communicated clearly and prominently so that consumers can make informed choices and shop confidently. Suppliers also stand to gain as fair-trading practices can go a long way in building a solid reputation as a trusted trader,” said Sia Aik Kor, CEO CCCS.