SINGAPORE, Nov 20 — The Competition and Consumer Commission of Singapore (CCCS) has issued a warning to food delivery platform Foodpanda, operated by Delivery Hero, for misleading advertising related to its Pandapro subscription service, The New Paper reported today.

The advertisement, which ran from July 1 to September 30, promoted the service with the claim of "unlimited free delivery on all restaurants.”

This message was widely circulated across multiple platforms, including Foodpanda’s Instagram page, in-app marketing, and billboards at public locations such as bus stops.

According to The New Paper, the CCCS launched an investigation in August into the ad after receiving a complaint.

The watchdog found that the advertisement failed to clarify key details about the offer.

It added businesses must ensure any claims of "free” services are clear and not misleading.

While the ad implied that Pandapro subscribers would receive free delivery from all restaurants, the reality was that subscribers only received a S$3 (RM10) discount on delivery for all restaurants, or a discount of up to S$6 for selected restaurants.

Moreover, CCCS found that more than 40 per cent of food delivery transactions made by Pandapro subscribers still required a residual delivery fee to be paid after the discounts were applied. This was in direct contradiction to the advertisement’s claim of "free delivery on all restaurants."

The New Paper also said today that Foodpanda had agreed to fully refund the subscription fees of customers who subscribed to Pandapro during the promotional period.

In a statement to Malay Mail, a Foodpanda spokesman said it was committed to clarifying the terms of the service to existing subscribers and reviewing its current and future marketing materials to ensure compliance with Singapore’s fair trading laws.

"At Foodpanda, we do our best to create a transparent and positive experience for all our customers. From July 1 to September 30, 2024, we ran a campaign that promoted enhanced benefits to our Pandapro subscription plan. We acknowledge that the terms and conditions required for pandapro subscribers to enjoy free delivery could have been communicated more clearly.

"Following customer feedback and an inquiry from the Competition and Consumer Commission of Singapore that the benefits advertised did not meet their expectations, we are reaching out to all new customers who subscribed to pandapro during the campaign period to offer refunds on a no-questions-asked basis, and to better illustrate the campaign's terms.

"We have since taken steps to improve our communication and ensure that all future campaigns are clear. We remain committed to listening to our customers and delivering the best possible service,” the spokesman said.