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.

The Competition and Consumer Commission of Singapore (CCCS) said on Nov 20 that Foodpanda’s campaign promises “unlimited free delivery at all restaurants” to users who purchase a Pandapro subscription. The plan was marketed starting at $4.99 per month. It only costs a 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 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.