Consumer Alerts - January 2007:
Paying money to claim prizes or free gifts? (Published in C@sebites Issue 95, 9 January 2007)
“Congratulations, you have a won a prize in our lucky draw…” If you get a phonecall or letter starting with this line, would your first instinct be to thank your lucky stars or to arch an eyebrow in cynicism?
We think it’s better to err on the side of caution. CASE has received some complaints about companies that ask you to pay a sum of money when collecting free gifts or prizes.
Here’s our advice to consumers:
If you are told you have won a lucky draw, be sure to find out how what lucky draw and how you were entered into the draw.
If you are told of a lucky draw with a retailer that you don’t remember patronising, press for more details.
Be on alert if you are told that you have to listen to a sales presentation or pay a fee for receiving the prizes.
Lastly, here is what we always say: If a deal sounds too good to be true, it probably is!
Cheap airline tickets, but don’t forget the tax and surcharges! (Published in C@sebites Issue 96, 26 January 2007)
The rise of budget airlines may be welcomed by Singaporeans who have wanderlust but the slew of advertisements featuring low-priced airline tickets leave many unclear of the exact price they will end up paying for their tickets.
On top of the ticket price, consumers also have to pay admin and insurance charges, taxes and fuel surcharges. The taxes and surcharges could add up to be substantially more than the ticket price.
For instance, Tiger Airways is offering a $9.99 one-way ticket from Singapore to Padang for passengers who fly from 1-31 May 2007. If you buy a $9.99 ticket for 1 May 2007, the taxes come up to $54.25, putting the total cost to consumers as $64.24.
Another example, Air Asia is offering a Chinese New Year special deal - $28.88 for a one-way ticket from Singapore to Bangkok for passengers who fly from 1 Feb – 31 Mar 2007. If you buy a $28.88 ticket for 1 Feb 2007, the taxes come up to $52, putting the total cost to consumers as $80.88.
At the time of writing, Jetstar Asia is offering a “1 to buy, 2 to fly” promotion where two passengers will fly for half price if they travel together from 24 Jan – 31 Mar. From the ads, it is not clear if the ‘half price’ is inclusive or exclusive of applicable taxes and surcharges.
Note: Price survey of the above examples was carried out on 24 January 2007.
Should retailers be allowed to advertise products of a certain pricing without mentioning the associated costs? The Advertising Standards Authority of Singapore (ASAS), which is an advisory council to CASE, has something to say.
ASAS recently issued a media advisory stating that all advertisements should fully disclose the end prices to consumers. In the advisory, ASAS said: “In particular, airline ads which do not state the prices of associated (e.g. security and airport taxes, insurance and administrative charges, and fuel surcharges, etc.) purchases are objectionable under SCAP.”
Seen a misleading ad? Find an ad objectionable? Write in to asas@case.org.sg, with a description or, if possible, a copy of the ad.