CCCS Warns Loft Home Furnishing for Fake Reviews

Singapore's Loft Home Furnishing has been issued a warning by the Competition and Consumer Commission of Singapore (CCCS) for engaging in deceptive practices on its website. The warning comes after the discovery of fake five-star product reviews that were found to be fraudulent. These reviews, which praised the quality of furniture and included photos of the items in customers' homes, were determined to be misleading.

CCCS uncovered that at least seven fake reviews were posted between November 2022 and August 2023 by Loft Home Furnishing and its affiliated businesses. Following customer complaints, investigations revealed that only the businesses had access to customer information and the photos used in the fake reviews. Loft Home Furnishing has taken steps to remove the identified fake reviews from its website, which previously featured over 13,000 customer reviews, predominantly five-star ratings.

CCCS emphasized the seriousness of posting fake reviews as an unfair trade practice that can mislead consumers. The agency focused its investigation on recent suspicious reviews on the retailer's website due to resource constraints. Loft Home Furnishing and its related businesses have committed to discontinuing the practice of posting fake reviews and have agreed to delete any confirmed fraudulent reviews. Customers who made purchases during the specified period and future customers will be urged to report any fake reviews associated with their purchases.

The owners of the Loft Home Entities have assured CCCS that they will refrain from participating in unfair trade practices. CCCS will oversee the businesses to ensure adherence to these commitments and may take further action if necessary.

President of the Consumers Association of Singapore (CASE), Melvin Yong, has voiced support for CCCS' enforcement actions, underlining the significance of genuine reviews for informed consumer decisions. He highlighted the global concern regarding fake reviews and indicated that CASE will collaborate with relevant government agencies to explore measures addressing this issue.

It is crucial for businesses to maintain transparency and integrity in their practices, especially when it comes to customer reviews. Consumers rely on honest feedback to make informed decisions, and the prevalence of fake reviews undermines this trust. By cracking down on deceptive practices, authorities like CCCS are working to protect consumers and uphold fair competition in the marketplace.