CCCS flags Agoda’s ‘problematic’ website and app features that could mislead Singapore consumers

SINGAPORE: The Competition and Consumer Commission of Singapore (CCCS) has raised concerns over Agoda’s “problematic” website and mobile app features, saying it could mislead Singapore consumers.

One concern the commission pointed out was Agoda’s use of the “Best Match” search results. While the results suggested listings were based “solely” on a user’s search criteria, CCCS found the rankings were also influenced by how much Agoda would earn from the properties.

The default ranking of search results was also flagged, as Agoda’s Terms of Use states that accommodation providers could boost their visibility by paying Agoda as part of a “Preferred Partner” programme or by sponsoring their own listings.

Another feature flagged was the “Agoda Preferred” badge shown on some listings as “trusted and verified properties” that have a long-standing relationship with the platform and “meet certain criteria”. CCCS pointed out that Agoda does not clearly explain what these criteria are. It also did not disclose that businesses have to pay Agoda more to get the badge.

In addition, accommodations with the “cheapest x-star stay” label were not actually the lowest-priced option when search results were sorted by price for the same star rating, misleading users who are looking for the cheapest option available.

CCCS also expressed concern that the five-minute countdown timer that appears during the booking process could create a false sense of urgency for users.

“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,” CCCS said.

The “Best Match” label was replaced with “Our Picks” to better reflect the platform’s recommendations. It also now clearly discloses that “Agoda Preferred” properties pay an additional commission.

In addition, Agoda has extended its website countdown timer to 20 minutes, matching the app, and removed its “cheapest x-star stay” label to avoid confusing consumers. /TISG

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