In brief
On 18 May 2026, the Competition and Consumer Commission of Singapore (CCS) reported taking action against three online retailers of lifestyle goods, mattresses and apparel after finding that they used misleading website design features that pressured consumers into purchasing.
Following investigations, the retailers provided formal undertakings to CCS to cease these website features and committed to avoid unfair trade practices in the future.
Recommended actions
Businesses should ensure that they do not use misleading or false website features to influence consumers’ purchasing decisions. Businesses are to note that they cannot disclaim responsibility to consumers regardless of whether they purchased third-party templates or designed the websites themselves.
This case demonstrates Singapore’s continued strict enforcement against cases of unfair trade practices and false or misleading advertisements. CCS is empowered under the Consumer Protection (Fair Trading) Act 2003 to investigate the use of misleading or false quality-related claims that may amount to unfair practices, and may initiate court proceedings to restrict businesses from continuing such unfair practices or to make a declaration that the company is engaging in an unfair practice, and enter into a voluntary compliance agreement with the company, where the company would agree not to engage in the unfair practice, among other terms.
In more detail
CCS’ investigations revealed that there were multiple misleading website features used to pressure consumers into making quick purchase decisions. These included:
- Fake numbers and fabricated countdown timers
- Continuing sales disguised as time-limited
- False scarcity
The first retailer’s website featured the claim “XX people are looking at this product right now”. However, the first retailer used randomly generated numbers of website visitors to give shoppers the illusion of high demand. Similar claims were made on the second retailer’s website.
The second retailer’s website also displayed misleading countdown timers, “Hurry! Your order is reserved for xx:xx minutes”, implying that purchases had to be completed before the time expired. However, these messages had no impact on product availability. There were also time-limited sales featured on the website, but the supposed flash sales continued for nearly two years.
CCS was alerted to the third retailer’s misleading practices by a European regulator. The third retailer featured “Almost sold out” warnings on products to suggest scarcity, but it operated on a made-to-order procurement model and maintained minimal inventory. These scarcity labels were applied for promotional effect, along with displaying discounted prices against higher “original” prices that were never actually offered.
The CCS stressed that businesses cannot disclaim responsibility even if their website designs are purchased third-party templates.
All three companies have provided formal undertakings to CCS, ceased their misleading practices, and are committed to avoiding unfair trade practices in the future.
* * * * *
© 2026 Baker & McKenzie. Wong & Leow. All rights reserved. Baker & McKenzie. Wong & Leow is incorporated with limited liability and is a member firm of Baker & McKenzie International, a global law firm with member law firms around the world. In accordance with the common terminology used in professional service organizations, reference to a "principal" means a person who is a partner, or equivalent, in such a law firm. Similarly, reference to an "office" means an office of any such law firm. This may qualify as "Attorney Advertising" requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome.