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How much can you trust the claims on the products you buy every day? Singapore's Competition and Consumer Commission (CCS) thinks it's time businesses are held accountable. CCS has issued a new Guide on Quality-RelatedClaims to curb misleading marketing practices and help businesses communicate more transparently with its customers.
The guide sets out five principles for all product and service claims: they should be true, clear, meaningful, supported by material information, and backed by credible evidence. In essence, businesses must be able to prove what they promise. It is intended to help businesses comply with fair trading laws while strengthening public trust.
The move comes after a series of enforcement actions against companies found to have misled consumers. These included Sterra Tech, which overstated the benefits of its water filters, and Nail Palace, whose managing director was jailed in 2024, the first such case in Singapore, after the salon chain ignored court orders related to false advertising. Hair salon HairFun also came under scrutiny earlier this year after they admitted to misleading elderly customers into purchasing expensive packages.
The new Guide built on a 2023 NUS Business School study, which found that over half of environmental claims on e-commerce sites were vague, highlighted the ever growing issue of greenwashing.
What this means: Businesses now face clearer expectations and potential consequences if their claims are misleading as they not only trigger enforcement by CSS but also pose risk to brand reputation. False statements about product quality, environmental credentials, or benefits may undermine brand goodwill, and trade dress protections, and could even lead to legal claims under passing off or unfair competition laws. Companies must substantiate statements, avoid exaggerations, and provide material information upfront. For consumers, the guide means better protection and more confidence in the claims they see; whether about product quality, environmental impact, or health benefits.
CCS also encouraged consumers to stay alert and ask questions about the claims they see. If something seems misleading or suspicious, they can report it to the Consumers Association of Singapore (CASE) or the Advertising Standards Authority of Singapore (ASAS)
As consumer awareness rises and regulatory scrutiny sharpens, this guide serves as a timely reminder: transparency and truth remain the cornerstones of sustainable business practice.
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