MPs question if interactive pressure tactics during livestreams considered unfair trade practices
Tan See Leng said the usage of urgency cues by livestream sellers is not, by itself, an unfair practice.
Democratic representatives Shawn Loh and Alex Yeo questioned whether interactive pressure tactics employed during live-stream broadcasts, like manipulated real-time stock counters, countdown timers, and automated social proof notifications, constitute unfair trade practices under Singapore's Consumer Protection (Fair Trading) Act 2003.
Loh inquired if the Competition and Consumer Commission of Singapore (CCS) could examine if these features fall under "dark patterns" and whether enforcement actions similar to those against online retailers using misleading tactics would be taken against livestream sellers. Yeo also asked if there would be additional consumer safeguards, such as extended cooling-off periods, for consumers facing time-pressure decisions during livestreams.
In his written response, Trade and Industry (Energy and Industry) Minister Tan See Leng clarified that it is inappropriate for a business to provide false or misleading information or to apply excessive pressure on consumers when making transactions, both offline and online. He noted that the use of urgency cues by livestream sellers does not inherently constitute an unfair practice.
However, Tan emphasized that the legitimacy of features like stock counters, countdown timers, and social proof notifications lies in their specific use case. Whether a particular feature constitutes an unfair practice depends on the particulars, such as the genuineness of the urgency and the accuracy of the information presented.
For consumers who believe they have encountered unfair practices in livestream commerce, Tan advised reaching out to the Consumers Association of Singapore (CASE) for assistance. The government pledged to collaborate with CASE in raising consumer awareness about unfair practices and aiding them in making well-informed decisions.
Additionally, Tan highlighted that businesses and marketers, including livestreamers, should adhere to the Singapore Code of Advertising Practice published by the Advertising Standards Authority of Singapore (ASAS) under CASE.
Written by urgent.news from Mothership's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
