Competition watchdog raises concerns over problematic features on Agoda website and app

New Paper

6 hours ago

Several design changes were made to travel platform Agoda's website and mobile application after the Competition and Consumer Commission of Singapore (CCCS) raised concerns on some problematic features.
The issues are related to its accommodation search and booking features, which CCCS was concerned that they would mislead customers.
'Best Match' search results
CCCS found Agoda's "Best Match" search results presented in a way which suggest that the rankings were most compatible based solely on the search criteria, such as travel dates and guest ratings.
But Agoda's search results also factor in the money the platform would earn.
Agoda has since replaced the "Best Match" label with "Our Picks" to better reflect that the results are the platform's recommendations.
'Agoda Preferred' badge
This badge appeared on selected properties accompanied by an explainer which said: "Agoda Preferred recommends trusted and verified properties that have a long-standing relationship with Agoda and meet certain criteria."
CCCS said it was concerned that this blurb did not adequately explain the criteria for properties to receive the badge, which include paying Agoda more.
Agoda has since revised the explainer to disclose more clearly that these properties pay additional commission to the platform, the watchdog added.
Default 'ranking' of search results
The way accommodation search results are ranked could potentially mislead consumers into believing that the listings were ordered based solely on their search parameters.
But accommodation providers could actually boost their visibility by paying Agoda as part of a "preferred partner programme" or by sponsoring their own listings.
In response to CCCS' concerns, Agoda has revised the explainer to clarify that the specific placements of these accommodations are influenced by other factors, including paying fees to Agoda.
'Cheapest x-star stay' label
Accommodations presented with this label were not always the lowest-priced options when the search results are sorted by price for the same star-rating, CCCS said.
It added that it was concerned that this label may have suggested to consumers that the labelled accommodation is the cheapest option available when it may not actually be.
To avoid confusing customers, Agoda has removed the label altogether.
Time limit to complete booking
Agoda website customers were shown a five-minute countdown timer as they were inputting details needed to complete their bookings.
This time could actually be extended by up to 20 minutes by clicking the "I need more time" button.
CCCS said it was worried that this would create a false sense of urgency for consumers to quickly complete the booking.
Agoda has since standardised the website's countdown timer to align with that of its mobile application, which is 20 minutes.
This provides more time for consumers to complete the booking process, or shop around for better options.
Using interface features that may mislead or even deceive consumers can be considered unfair trade practices under Singapore's fair trading laws, CCCS said, adding that this could lead to enforcement action by the commission.
Instead, businesses should design their user interface to present options in a clear and neutral manner to consumers to make well-informed choices.
"Important and material information, particularly those relating to pricing, should be presented upfront and not be hidden in fine print," CCCS warned. Statements regarding the practices and policies of a business should also be clear and easily understood.
CCCS chief executive Alvin Koh said the exchange with Agoda was part of a series of actions the watchdog will take to improve the online commerce space.
Particularly, 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," he said.
Anyone who would like to report cases of unfair trade practices by errant businesses may contact the Consumers Association of Singapore at 6277 5100 on weekdays, from 9am to 5pm, or via the Case website.