Foodpanda warned over misleading ‘Pandapro’ subscription advertisement

This is due to its “free delivery on all restaurants” claim.

The Competition and Consumer Commission of Singapore (CCCS) has issued a warning to Delivery Hero (Singapore) Pte. Ltd., more commonly known by its brand Foodpanda, over a misleading advertisement in its recent advertising campaign for its “Pandapro” subscription service.

The Pandapro advertisement promoted “Unlimited Free Delivery on All Restaurants” for the subscription service, which ran from 1 July to 30 September 2024.

This was displayed across multiple platforms, including Foodpanda’s Instagram page, its in-app marketing, billboards, and signage at public areas such as bus stops.

In August 2024, CCCS commenced an investigation following a complaint on the advertisement.

The advertisement promised “unlimited free delivery on all restaurants” for Pandapro subscribers; however, in respect of food delivery fees, Pandapro subscribers only received a $3 discount for all restaurants, or a discount of up to $6 for selected restaurants.

Moreover, contrary to the advertised, CCCS found that over 40% of food delivery transactions made by Pandapro subscribers on all restaurants over the advertising period required a residual delivery fee to be paid after the discounts were applied.

Following the investigation, Foodpanda has acknowledged CCCS’s concern and agreed to take some actions.

Foodpanda will provide a full refund of subscription fees to customers who subscribed to Pandapro during the advertising period

They will also provide clarification to customers who had subscribed to Pandapro during the advertising period and the public on the terms of the Pandapro subscription

Lastly, they will review their existing and future marketing materials for Pandapro subscriptions to ensure compliance with Singapore’s fair trading laws.

“It is crucial that businesses ensure that their claims are accurate,” said Alvin Koh, chief executive of CCCS. “Transparent pricing is crucial for consumers to make informed purchases and to allow all businesses to compete fairly.”

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Competition and Consumer Commission of Singapore

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