Finance

Agoda Under Fire: Singapore’s Watchdog Slams Misleading Features on Website and App

2025-06-16

Author: Li

Singapore's Competition Watchdog Takes Action Against Agoda

In a significant development for travelers, Singapore’s competition watchdog has flagged Agoda for employing potentially misleading features on its Singapore website and mobile app. The Competition and Consumer Commission of Singapore (CCCS) expressed concerns regarding how search results were presented and ranked, hinting that these designs might deceive consumers.

Dollars Over Transparency: The Hidden Influence

A key issue identified was the algorithm behind the search results, which prioritized listings based on payments made by businesses rather than the relevance of the offerings. The CCCS highlighted that such practices could be deemed unfair trade practices under Singaporean law, putting businesses at risk of enforcement actions.

From 'Best Match' to 'Our Picks': A Sought-After Change

One notable example of misleading design was Agoda's 'Best Match' label, which suggested that certain accommodations were the best fit based purely on user preferences. However, the reality was that those listings often paid for better visibility. Following scrutiny, Agoda has now replaced this label with 'Our Picks', more accurately reflecting its recommendations.

The 'Agoda Preferred' Badge: A Closer Look

Another concern revolved around the 'Agoda Preferred' badge. Initially marketed as a sign of trusted properties, the criteria for obtaining this badge were unclear. Now, Agoda has revised its explanation to inform consumers that properties pay additional commissions to earn this designation.

Rankings: A Misleading Illusion?

The ranking of accommodations further complicated matters, as it could mislead consumers into believing that listings were organized solely by search parameters. In truth, businesses could enhance their rankings by participating in Agoda’s 'Preferred Partner Programme'. This manipulation of search results has now been clarified in updated descriptions.

Goodbye to 'Cheapest x-star' Label

In another move to improve transparency, Agoda has eliminated the potentially confusing 'Cheapest x-star' label, which suggested that the listed accommodations were the lowest-priced options available. The CCCS indicated that this could confuse consumers, and Agoda responded by removing it entirely.

Countdown Timer: Creating Unnecessary Pressure?

Furthermore, a countdown timer on the website that initially allowed only five minutes to finalize bookings raised concerns about inducing a false sense of urgency among users. Agoda has since aligned the timer's duration on both its mobile app and website to a more consumer-friendly 20 minutes.

A Call for Ethical Design Practices

The CCCS has stressed the importance of transparency in user interface design. Relevant information, particularly relating to pricing, should be clearly presented upfront, avoiding any hidden terms in fine print. The organization emphasizes that businesses must communicate their practices clearly to allow consumers to make informed choices.

Consumer Education and Empowerment

CCCS chief executive Alvin Koh reiterated the agency’s commitment to educating consumers about misleading practices and how to safeguard themselves. He warned that consumers may feel undue pressure during transactions and encounter manipulative website features that could cloud their decision-making.