Travel platform Agoda has made changes to certain design features on its website and app following concerns raised by the Competition and Consumer Commission of Singapore (CCCS).
The competition watchdog expressed that the accommodation search and booking features on the platform might have led customers to be misled.
CCCS highlighted five particular issues and the steps taken by Agoda to address them in a news release on June 16.
Initially, Agoda's "Best Match" search results were presented in a manner that implied they were solely based on search criteria like travel dates or guest ratings.
However, these results also considered the platform's potential earnings.
CCCS noted that Agoda has now replaced the "Best Match" label with "Our Picks" to accurately reflect that these results are Agoda's recommendations.
The platform also showcases an "Agoda Preferred" badge on selected properties to indicate their longstanding relationship with Agoda and meeting specific criteria, making them "trusted and verified".
CCCS pointed out that Agoda did not sufficiently disclose the criteria and the fact that businesses pay Agoda for this badge.
Agoda has updated the explainer to clearly state that these properties pay additional commission to Agoda.
According to CCCS, the default ranking of search results on Agoda's site could mislead consumers into thinking it's solely based on their search parameters when accommodation providers can pay to enhance their visibility.
Following feedback from the competition watchdog, Agoda has revised the explainer to clarify that the specific placements of accommodations are influenced by factors including payments to Agoda.
Moreover, accommodations labeled "cheapest x-star stay" were not always the most affordable when search results were sorted by price for the same star-rating.
CCCS cautioned that consumers might incorrectly assume a labeled accommodation is the cheapest option available when it may not be.
Agoda has removed the confusing label to prevent misunderstandings.
Lastly, Agoda's website used to display a five-minute countdown timer as customers entered their details, which could actually be extended up to 20 minutes by clicking the "I need more time" button.
CCCS was concerned that the initial time limit could create a false sense of urgency for consumers to complete the booking.
The website has now standardized the countdown timer to match the mobile app's time limit, extending it from five to 20 minutes.
This change allows consumers more time to finalize their bookings or explore other options.
AsiaOne has reached out to Agoda for further details.
Important information should be 'presented upfront'
CCCS mentioned that utilizing user interface features that might mislead or deceive consumers could be deemed unfair trade practices under Singapore's fair trading laws, potentially leading to enforcement action by the commission.
Businesses are urged to design their user interfaces in a clear and neutral manner to enable consumers to make well-informed choices.
CCCS emphasized the need for essential information, especially regarding pricing, to be presented upfront without being hidden in fine print.
CCCS CEO Alvin Koh highlighted these efforts as part of improving the online commerce space to protect consumers from undue pressure during transactions, problematic website features, or misleading practices.
He also mentioned that CCCS will educate consumers on identifying misleading practices in the future.
In a Facebook post on June 16, Consumers Association of Singapore (Case) president Melvin Yong expressed support for CCCS raising concerns about potentially misleading features on Agoda's Singapore website.
He encouraged consumers to choose CaseTrust-accredited businesses for a safer online shopping experience.
"I encourage all consumers to patronise CaseTrust-accredited businesses, for greater peace of mind when online shopping," he said.