Huawei smartphone promotion under investigation, Latest Singapore News - The New Paper

Huawei smartphone promotion under investigation

This article is more than 12 months old

Three organisations are investigating whether tech giant Huawei breached consumer protection laws and advertising guidelines in its promotion of a smartphone deal that led to chaotic scenes at stores across the island on Friday last week.

This comes as Huawei said yesterday that it will give out $100 vouchers to about 5,000 people who registered but failed to buy the Huawei Y6 Pro at a promotional price of $54.

The Advertising Standards Authority of Singapore told The Straits Times yesterday that it is assessing if the company had complied with the Singapore Code of Advertising Practice guidelines on the availability of products and bait advertising. It has received 10 complaints on the promotion.

The Consumers Association of Singapore (Case) contacted the Competition and Consumer Commission of Singapore (CCCS) on Monday to discuss potential action against Huawei, after Case president Lim Biow Chuan described its advertisement as misleading for not making clear that stocks were limited.

The CCCS said yesterday that it is looking into if Huawei had breached the Consumer Protection (Fair Trading) Act.

The promotion, which slashed the price of the Huawei Y6 Pro 2019 from $198 to $54 for Singaporeans and permanent residents above the age of 50, was cut short when the 27 stores selling the phone sold out almost immediately.

Police had to be called in at several outlets to manage the angry crowds, as some customers were told that outlets had as few as 20 units available.

According to advertising guidelines, advertisers should ensure adequate supply of products to meet foreseeable demand generated by an advertisement or promotion, and make clear any limitations of the product's availability.