Consumer watchdog calls out Agoda over ‘misleading’ website and app features

Agoda’s website and mobile app in Singapore has come under scrutiny by the Competition and Consumer Commission of Singapore (CCCS) for design elements that could mislead consumers.

One of the issues involved Agoda’s “best match” label, which suggested search results were ranked purely based on how well they fit the consumer’s criteria, such as travel dates or guest ratings. However, CCCS found Agoda’s algorithm also factored in the commission Agoda would earn, compromising transparency.

Another concern focused on the “Agoda preferred” badge, which appeared on selected properties alongside a note stating these were “trusted and verified” partners. CCCS pointed out that this explainer did not clearly disclose that the properties pay higher commissions to Agoda.

Don't miss: foodpanda warned over 'misleading' free delivery ad for pandapro

CCCS also flagged how search results were default-ranked in a way that might lead consumers to believe the order reflected their search preferences alone. In reality, listings could be boosted through Agoda’s “preferred partner program” or sponsored placements.

Furthermore, the “Cheapest x-star stay” label was found to be potentially misleading as it did not always highlight the lowest-priced option within the same star rating. Agoda has removed this label to avoid consumer confusion.

The use of countdown timers during booking was also under scrutiny. Agoda’s website initially displayed a five-minute timer to complete bookings, which could be extended to 20 minutes by clicking a button.

CCCS was concerned the short timer could create a false sense of urgency, pressuring consumers to rush their decisions.

CCCS reminded businesses that user interface designs that mislead or deceive consumers may be considered unfair trade practices under Singapore’s fair-trading laws, potentially leading to enforcement actions. It urged companies to present options clearly and neutrally, with pricing and material information upfront and easy to understand.

Following investigations, the digital travel platform has since voluntarily provided an undertaking and cooperated to make changes ensuring users receive accurate and clear information before booking accommodations following investigations.

This includes replacing the “best match” label with “our picks” to better reflect that the rankings are influenced by Agoda’s commercial interests, revising wording to explicitly reveal paid relationships and updating disclaimers to clarify that visibility can be influenced by payment.

It has also removed the "Cheapest x-star stay" label to avoid consumer confusion and standardised a 20-minute timer across both website and app to provide users more time to complete their bookings or shop around.

"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." said Alvin Koh, chief executive of CCCS.

In a separate case, wellness tech firm OSIM pledged to boost transparency after CCCS raised concerns about its product endorsements, standards, suitability disclosures, and pricing.

Since then, OSIM has taken steps to address these issues and agreed to implement internal compliance policies to ensure adherence to Singapore’s fair-trading laws.

Related articles:
Grab Singapore's Trans-cab acquisition may violate competition law, says CCCS
AirAsia accepts MalaysiaNow's apology over misleading articles
Sterra's brand reputation murky over false ads and misleading claims