Foodpanda warns of ‘misleading’ ad promoting free delivery at all restaurants

SINGAPORE – Popular food delivery app Foodpanda will issue full refunds to users who subscribed to its paid Pandapro service between July 1 and September 30 after the competition watchdog found its advertising during the period misleading.

According to a statement made by the Competition and Consumer Commission (CCCS) on November 20, Foodpanda’s campaign promised “unlimited free delivery at all restaurants” to users who purchased a Pandapro subscription. The plan was marketed starting at $4.99 per month, and the first month only cost one dollar.

But subscribers only get a $3 discount on all restaurant delivery fees or up to $6 off at select restaurants, the commission noted.

Following a complaint about the ad, CCCS’s investigation revealed that Pandapro subscribers still had to pay delivery fees on more than 40 percent of food delivery orders placed during the campaign period.

It was stated that the watchdog issued a warning to Foodpanda due to unqualified and misleading advertisements. These ads appeared on Foodpanda’s social media, on billboards, at bus stops, and as pop-ups on the app.

“Without any qualifiers, (the ads) may mislead consumers into thinking that Pandapro subscribers will enjoy free delivery at all restaurants available on Foodpanda,” CCCS said.

He added that when making absolute claims such as “free”, any qualifiers, exclusions and incidental costs must be prominently stated, and a general disclaimer such as “terms and conditions apply” is often not sufficient.