Furniture shop gets warning after customers complain it used their initials in fake 5-star reviews
Rhea Yasmine
The Straits Times
June 21, 2024
Furniture company Loft Home Furnishing has been given a warning after it was found to have published fake five-star reviews of its products on its website.
The fake reviews were posted between November 2022 and August 2023.
On June 21, the Competition and Consumer Commission of Singapore (CCCS) said it had started a probe into the company after receiving complaints from customers about reviews that used their initials, and were posted on the firm's website without their knowledge.
CCCS said: "The reviews gave glowing recommendations on the quality of the purchased furniture and contained actual photos of the furniture displayed in the customers' homes."
At least seven "customers" were found to have made fake five-star reviews, it added.
The firm and two related businesses - Loft Home Furniture and Loft Industries - were found to be responsible for the fake reviews.
"Investigations revealed that only they had access to the customers' information and were in possession of the photos used in the reviews," said CCCS.
It is an unfair trade practice for businesses to post a fake review in relation to a consumer transaction, said CCCS, as consumers might be misled into thinking that the review is genuine.
"Loft Home Furnishing has also admitted to have engaged in such an unfair trade practice," it added.
Following the investigations, Loft Home Furnishing and the two related businesses have promised to stop posting fake reviews and remove reviews which have been verified as fake. Reviews identified as fake during the investigation have since been taken down.
Customers who made purchases between November 2022 and August 2023, and future customers who are asked to leave a review will be invited to report any fake reviews linked to their purchases.
The businesses also agreed to set up a feedback channel for customers to report fake reviews found on any of their websites, the CCCS said.
The owners of the businesses - Sui Luyang and Wang Lei - have also given undertakings that they will not engage in unfair trade practices under the Consumer Protection (Fair Trading) Act 2003 (CPFTA), or cause any of the businesses to do so in the future.
Action will be taken against Loft Home Furnishing and the related businesses if they do so, said CCCS.
It has advised consumers to exercise caution when reading reviews before making a purchase.
They should read a selection of reviews with different ratings and check several websites to gauge the reliability of reviews.
They should also be wary of overly positive reviews, and those that use generic buzzwords or are posted under similar names using similar language.
CCCS chief executive Alvin Koh said: "Today, online reviews play an important role in helping consumers make purchasing decisions. These reviews can shape customers' perception of a brand and its products, and when businesses fabricate reviews to make themselves look good, consumers may be misled into making purchases.
"CCCS will make this an area of enforcement priority in the coming months, and will continue to take action against businesses who engage in such unscrupulous acts."
Consumers who encounter unfair practices under the CPFTA can approach the Consumers Association of Singapore (Case) for assistance, said CCCS.
In a Facebook post on June 21, Case president Melvin Yong said the association supports CCCS' enforcement actions. "We must hold businesses accountable for unfair trade practices," he added.
He noted that the issue of fake reviews is a growing concern globally.
"Various jurisdictions, such as the United States, are contemplating new rules to target fake reviews. Case will study this in our new term of (the) central committee, and engage the relevant government agencies to deter such unfair practices," he said.
