Agoda modifies 'problematic features' on website and app after competition watchdog raises concerns
SINGAPORE: Online travel agency Agoda has made changes to its Singapore website and mobile application due to concerns about its "problematic features" raised by the Competition and Consumer Commission of Singapore (CCCS).
The features were related to Agoda's accommodation search and booking services that may have misled consumers.
On Monday (Jun 16), the commission said: "Agoda has since voluntarily provided an undertaking and cooperated with CCCS to make changes to its website and mobile application to ensure that consumers get accurate and adequate information to consider before they make their purchases."
THE PROBLEMATIC FEATURES
CCCS said in its news release that some of the misleading features included the use of countdown timers and the presentation and ranking of search results.
It listed five of them and what Agoda did to rectify them.
1. Agoda presented certain search results as 'Best Match', suggesting that such rankings were the most compatible results for its users based solely on their search criteria such as travel dates or the ratings of items listed. However, Agoda's search results from its algorithm also took into account its potential earnings when generating these results.
The "best match" label has been replaced with "our picks", which highlights that these results are recommended by Agoda.
2. The "Agoda Preferred" badge appeared alongside certain properties listed, indicating that these listings have "a long-standing relationship with Agoda and meet specific criteria", making them "trusted and verified". However, Agoda did not provide enough information about the criteria and failed to mention that businesses pay Agoda extra for this badge.
It has since updated its explanation to clarify that these properties do indeed pay more commission to get the badge.
3. The default ranking of search results could have led consumers to mistakenly believe that the listings were ordered solely based on their search criteria. However, as stated in Agoda's terms of use, accommodation providers can increase their visibility by paying Agoda through its 'Preferred Partner Program' or by sponsoring the listings.
Agoda has modified its explainer statement to clarify that the specific placement of these accommodations is influenced by various factors, including payments made to Agoda.
4. Accommodations with the "cheapest x-star stay label" were not always the lowest-priced options when the search results are sorted by price for the same star-rating. Consumers may mistakenly believe that a labelled accommodation is the cheapest choice available when it may not be. \
The 'cheapest x-stay' label has been removed to avoid confusion.
5. Consumers using Agoda's website had a five-minute countdown timer while entering their details to finalise their accommodation booking. However, this could be extended to up to 20 minutes by clicking the 'I need more time' button. The original five-minute time limit could create a false sense of urgency, prompting consumers to rush to confirm their booking.
The website's countdown timer has now been standardised to match the mobile app's time limit, increasing it from five to 20 minutes.
In response to competition watchdog's' concerns, Agoda said: 'We appreciate the CCCS's guidance and have taken proactive steps to enhance transparency on our platforms.
"We've already proactively implemented several improvements and we continue to enhance the user experience."
CNA has asked if the changes applied were just for Singapore users or also included its users elsewhere.
INFORMATION SHOULD BE "UPFRONT"
In getting Agoda to take remedial action, CCCS said that user interface features rolled out by businesses may mislead or deceive consumers and these can be considered unfair trade practices under Singapore's fair trading laws. This means that these businesses may face enforcement action by the commission.
Businesses should therefore design user interface to present options clearly and neutrally to consumers so that consumers may make well-informed choices.
"Important and material information, particularly those relating to pricing, should be presented upfront and not be hidden in fine print," it added.
"Statements regarding the practices and policies of a business should be clear and easily understood."
CCCS' chief executive officer Alvin Koh said: "This is part of a series of actions we will take to improve the online commerce environment, where consumers may face undue pressure to complete their transactions, problematic website features or even 'dark patterns' such as misleading messages, and manipulative user interfaces.
"In the coming months, CCCS will make it a point to educate consumers on identifying these misleading practices and how consumers can better protect themselves.'
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