The State Courts of Singapore has ordered online retailer Fashion Interactive to stop engaging in unfair trade practices.
The order follows a Competition and Consumer Commission of Singapore (CCCS) appeal for an injunction against the e-commerce retailer.
During its investigations, CCCS found that Fashion Interactive was engaging in a ‘subscription trap’ practice on its website, myglamourous.sg.
Under this, consumers are reportedly misled and asked to sign up for a membership subscription that recurs.
Consumers are left with no information that the purchase at the advertised price cannot move ahead without first subscribing to the membership with recurring monthly fees.
Additionally, the post-purchase email sent to customers also did not contain information of the membership subscription and its recurring monthly fees.
The Consumers Association of Singapore (CASE) who previously interfered to help affected consumers has issued a Consumer Advisory in January 2019 after receiving additional complaints with the same issue.
CCCS said the court order requires Fashion Interactive to ‘notify CCCS of any changes related to its business, including changes to its internet addresses or name and if it establishes a website or mobile application for consumer transactions. In addition, Magaud must notify CCCS of the status of his employment, directorship and partnership.’
The retailer is also required to display the declaration and injunction details on the website’s landing page, as well as notify customers of the declaration and injunction before entering a contact.