CCCS warns Foodpanda for misleading advertising of Pandapro subscription service

The Competition and Consumer Commission of Singapore (CCCS) has issued a warning to Delivery Hero (Singapore) Pte. Ltd., operating as Foodpanda, over misleading advertisements for its Pandapro subscription service.

The ads, which ran between 1 July and 30 September 2024, falsely promoted “unlimited free delivery on all restaurants,” causing confusion among consumers. In reality, the Pandapro subscription only provided a $3 discount on all restaurants or up to $6 on select restaurants, with over 40% of transactions still requiring a residual delivery fee.

The CCCS launched an investigation after receiving complaints in August 2024 and found that the advertisements failed to clearly disclose that additional charges may apply. Foodpanda acknowledged the issues and committed to issuing refunds to affected customers, revising marketing materials, and ensuring clearer communication in the future.

While the CCCS concluded the investigation with a warning, it emphasized the importance of transparency in advertising, especially regarding terms like “free” or “$0.”

The commission cautioned Foodpanda that future violations could lead to stricter actions. The CCCS also urged the public to report misleading ads to the Advertising Standards Authority of Singapore (ASAS).

Read more at: https://www.theonlinecitizen.com/2024/11/20/cccs-warns-foodpanda-for-misleading-advertising-of-pandapro-subscription-service/

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