Sterra made false claims about its purifiers and quality of Singapore’s tap water: Consumer watchdog

SINGAPORE: Purifier company Sterra has apologised for making false and misleading claims about its air and water purifiers, as well as the quality of Singapore’s tap water, said the Competition and Consumer Commission of Singapore (CCCS) on Friday (Aug 30).
The consumer watchdog launched an investigation after receiving complaints about an online advertisement by Sterra in February, which falsely claimed that Singapore’s tap water was unsafe for direct consumption without being filtered by Sterra’s water purifiers.
Two complaints came from the public and another from Singapore’s national water agency PUB.
Investigations revealed that Sterra had made other misleading representations on its website between February 2023 and March 2024.
It claimed that three models of air purifiers were made in Singapore when they were made in China.
Two models of water purifiers were marketed as Korean when they were neither sourced from nor manufactured in Korea, but were in fact manufactured in China.
Sterra also offered false discounts when the usual, pre-discounted prices that Sterra claimed for comparison with its discounted price were not genuine previous prices.
PUB said Sterra repeatedly published online content implying that tap water in Singapore is not safe for consumption.
In the advertisement in February, Sterra “attempted to mislead the public” into thinking that the country’s tap water contained harmful micro-organisms, such as bacteria and algae.
“PUB will not condone any false or misleading claims made by companies like Sterra to promote their products. Such claims could impact public confidence in Singapore’s drinking water,” said the agency.
It added that Singapore’s tap water is safe to drink and is well within the World Health Organization’s guidelines for drinking water quality.
“There is no need for any point-of-use water treatment or filtering devices to further treat the water,” said PUB.
Following the investigation, Sterra apologised and provided an undertaking to the CCCS that it would “stop its unfair trade practices and put in place an internal compliance policy to ensure that its marketing materials comply with fair trading laws”.
Sterra’s directors, Lim Liangzhi and Lim Wei Hou, also gave personal undertakings that they would not engage in any unfair trade practice or facilitate Sterra to do so in future.
In Facebook and Instagram posts, Sterra apologised for the advertisement in February that misled consumers into thinking that Singapore’s tap water was unsafe for drinking.
“Moving forward, we are committed not to publish false or misleading ads, including those in relation to the quality of Singapore tap water,” it said.
In its apology, Sterra thanked the CCCS and PUB for alerting the firm of their concerns and giving it the “opportunity to make things right”.
When asked about why a fine was not imposed, CCCS said it is not within its powers to impose financial penalties against businesses that engage in unfair trade practices.
It is, however, empowered to seek court orders against businesses to stop their unfair trade practices.
“In this case, CCCS took into consideration that Sterra had cooperated with CCCS’s investigation, was willing to admit to its conduct, and take corrective actions as part of the undertaking to address the online advertisement and other unfair practices that were identified by CCCS,” the watchdog said in response to CNA’s queries.
“If Sterra does not comply with the undertaking, CCCS will not hesitate to take firmer enforcement action.”  
Sterra will also have to cooperate with the Advertising Standards Authority of Singapore (ASAS) and other public agencies, including PUB, to resolve all complaints by consumers and publish any clarifications about misleading advertisements.
“In closing the case, CCCS has accepted the undertakings and issued warnings to Sterra and its directors. CCCS will take action if the undertakings are not complied with,” said the consumer watchdog.
CCCS chief executive Alvin Koh added: “Such practices hinder the ability of consumers to make informed decisions, which is essential for well-functioning markets.
“They also erode consumer trust and undermine the ability of honest businesses to compete on a level playing field.”
In a Facebook post shortly after CCCS released its statement, the president of the Consumers Association of Singapore (CASE) revealed that the organisation had received seven complaints against Sterra in 2022, 10 in 2023 and four so far this year. 
Most of these complaints had to do with defective products, unsatisfactory services during installation and delays in delivery, said Mr Melvin Yong.
“CASE will continue to work closely with CCCS to take action against companies that engage in unfair business practices and mislead consumers,” he added.
In response to questions about what action, if any, has been taken against Sterra, CASE replied that it advised consumers with complaints on their recourse options, including their rights to request a replacement product if the water purifier that they received was faulty. 
CCCS is a government body that administers consumer protection laws while CASE, a consumer watchdog, is a non-profit and non-governmental organisation.
Sterra came under the spotlight after the ASAS received complaints earlier this year that the company had implied in an advertisement that the country’s tap water is unsafe for drinking.
Sterra’s claims were later debunked in a viral video by Mr Clarence Sim, a PhD student from Nanyang Technological University’s Genomics and Ecology of Eukaryotes Lab.
The microbiologist proved that the “nasty microscope video” shown by Sterra did not come from tap water, but instead from a pond.
He had created the video to raise awareness among members of the public, Mr Sim told CNA previously.
“CCCS records our appreciation for the vigilance of Mr Clarence Sim, who called out Sterra’s misleading advertisement earlier on Feb 1, 2024,” said the consumer watchdog on Friday.
“While CCCS will continue to monitor the industry, consumers must also remain vigilant and conduct their own research before making any purchasing decision.”