Furniture retailer Loft Home Furnishing issued warning by consumer watchdog for posting fake 5-star reviews

SINGAPORE: Furniture retailer Loft Home Furnishing has been given a warning for publishing fake five-star product reviews on its website following an investigation by Singapore's consumer watchdog.

The fake reviews were posted between November 2022 and August 2023, the Competition and Consumer Commission of Singapore (CCCS) said in a media release on Friday (Jun 21). 

Investigations began last October after some customers complained that reviews containing their initials were posted on the website without their knowledge. 

"The reviews gave glowing recommendations on the quality of the purchased furniture, and contained actual photos of the furniture displayed in the customers’ homes," said the consumer watchdog. 

It identified fake five-star reviews that appeared to be made by at least seven customers. 

CCCS concluded that Loft Home Furnishing and two of its related businesses, Loft Home Furniture and Loft Industries, were responsible for posting those reviews. 

"Investigations revealed that only they had access to the customers’ information and were in possession of the photos used in the reviews," said CCCS.

It added that Loft Home Furnishing has since removed the fake reviews identified during investigations.

A check by CNA on Friday afternoon shows that the company's website has over 13,000 product reviews by customers, the majority of whom gave a five-star rating. 

It is an unfair trade practice to post a fake review in relation to a consumer transaction as customers might be deceived or misled into thinking that the review was genuine, CCCS noted. 

When asked if it looked into all the reviews involving Loft Home Furnishing, including those on platforms such as Shopee, Lazada and Google, the consumer watchdog said that due to limited resources, the investigations focused on the more recent and suspicious reviews on the retailer's website. These include those identified by CCCS and the complainants.

"Because of the nature of the conduct, CCCS' investigations can only focus on matters that we have obtained credible evidence," it said in response to CNA's queries.

Following the investigation, the company and the two related businesses have promised CCCS that they will stop posting fake reviews and remove those verified to be fake.

Customers who made purchases between November 2022 and August 2023, as well as future customers who are asked to leave a review, would also be invited to report any fake reviews on the website linked to their purchases.

A feedback channel will also be set up for customers to report any fake reviews on the website, or any website owned by the companies.

"Sui Luyang and Wang Lei, who own the Loft Home Entities, have similarly given undertakings to CCCS that they will not engage in any unfair trade practice under the Consumer Protection (Fair Trading) Act 2003," said the agency. 

Explaining why it issued a warning, CCCS said it took into consideration the fact that the business was cooperative during the investigations, admitted to the unfair trade practice and put safeguards in place.

"CCCS will also be conducting monitoring to ensure that the business complies with the undertaking," the consumer watchdog told CNA, adding that it could take further action such as seeking an injunction from the courts, if the businesses do not comply with the undertaking.

CNA has contacted Loft Home Furnishing for more information.

President of the Consumers Association of Singapore (CASE), Melvin Yong said that the association supported CCCS' enforcement actions. 

"We must hold businesses accountable for unfair trade practices. Ensuring that reviews are genuine is crucial for consumers to make informed decisions," he said in a Facebook post.

"Globally, the issue of fake reviews is a growing concern. Various jurisdictions, such as the United States, are contemplating new rules to target fake reviews. CASE will study this in our new term of central committee, and engage the relevant government agencies to deter such unfair practices."