Purexygen, directors warned for unfair marketing practices
Water filtration company Purexygen and its directors have been issued warnings by the Competition and Consumer Commission Singapore (CCCS), for unfair practices such as making misleading claims on the health benefits of filtered water.
In a statement on March 21, the CCCS said it is reviewing the marketing practices, accreditation, certification, and health benefit claims made by water filtration system suppliers, as part of its ongoing market monitoring of the industry.
The commission investigated Purexygen - a company that supplies water dispensers, alkaline water filtration systems, and maintenance system packages to consumers - under the Consumer Protection (Fair Trading) Act (CPFTA), and found that the company had engaged in “unfair practices” between September 2021 and November 2023.
During this period, the company had made misleading claims on the health benefits of alkaline or filtered water on its website and social media pages, such as how they can help prevent osteoporosis, acid reflux, blood pressure conditions, and diabetes.
The company had also told customers that its water faucet and water dispenser were free for a limited time, in its Carousell listings, even though both items are provided to all of Purexygen’s customers for free at all times, and gave false excuses on its “persistent delay” in providing a customer with the water filters bought.
The company also falsely claimed, in sales kits used to pitch to customers, that its water filters had been tested by testing bodies, said CCCS.
The commission added that Purexygen had stated in its service agreements that the sums paid for the activation fee and maintenance service package under direct sales contracts were non-refundable, but did not tell them that they could legally cancel such contracts and be refunded.
Purexygen has changed its business practices after the investigation to comply with the CPFTA, including removing false claims from its sales kit, misleading listings on Carousell, misleading claims on the health benefits of alkaline and filtered water, and has delivered water filters it owed to the customer.
The company has also pledged to stop engaging in unfair practices, cooperate fully with the Consumers Association of Singapore (Case) to resolve complaints from consumers, create an internal policy to ensure all marketing materials comply with the CPFTA, and ensure that all its employees familiarise themselves with the types of conduct that could be considered unfair practice.
The company’s directors, Mr Heng Wei Hwee and Mr Tan Tong Ming, have also pledged that Purexygen will not engage in further unfair practices.
“In closing the case, CCCS has accepted the undertakings of Purexygen and its directors, and also issued warnings to Purexygen and its directors regarding the unfair practices,” said the commission.
“CCCS will take action if Purexygen or their directors breach the undertakings or engage in any other unfair practices.”
CCCS chief executive Sia Aik Kor said that suppliers in the water filtration system industry are reminded to ensure that any claims made in marketing materials are clear, accurate, and substantiated.
“Suppliers should also review their business practices from time to time to ensure that such practices do not amount to unfair practices,” said Ms Sia.
“Under the CPFTA, CCCS can seek out court orders against errant suppliers who persist in unfair practices.”
Customers who come across false or misleading claims can approach Case for help, said the commission.
Get The New Paper on your phone with the free TNP app. Download from the Apple App Store or Google Play Store now