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IDA issues ‘stern warning’ to Singtel over Gushcloud incident

SINGAPORE — Singtel will be required to put in place measures to ensure appropriate management oversight and control over its marketing and advertising campaigns so as to prevent a repeat of the Gushcloud incident, said the Infocomm Development Authority (IDA) today (May 18).

A man using his mobile phone passes a Singtel signage at their head office in Singapore. Photo: Reuters

A man using his mobile phone passes a Singtel signage at their head office in Singapore. Photo: Reuters

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SINGAPORE — The Infocomm Development Authority (IDA) today (May 18) issued a “stern warning” to Singtel, following the completion of investigations into what it deemed to be a negative marketing campaign involving social media agency Gushcloud.  

The smear campaign, where Gushcloud had offered perks to social media “influencers” to complain about rival telcos, had caused a huge public backlash earlier this year, prompting Singtel CEO Chua Sock Koong to publicly apologise to StarHub and M1. 

In a press release, IDA said it was “disappointed that such marketing tactics have been employed by Singtel”.  

“IDA has always encouraged licensees to compete by promoting the availability, price and quality of their own services, and not by disparaging those of their competitors,” said a spokesman.

He added: “IDA made it clear in its warning to Singtel that IDA will not tolerate such practices. IDA requires Singtel to put in place the necessary measures to ensure appropriate management oversight and control over its marketing and advertising campaigns in order to prevent future such incidents, and that it should not adopt publicity practices or campaigns that may potentially bring disrepute to the telecommunication industry.”

Responding to IDA’s statement, Singtel said it is “committed to upholding the highest standards of professional values and integrity in everything we do”.

Its spokesperson said: “We take a very serious view of the lapse. We have, and will continue to take measures to ensure that our staff and business partners understand and adhere to the same standards and values.” She declined to elaborate on the measures. 

StarHub said it noted and accepted the authority’s decision to close the matter. It did not respond to TODAY’s queries on whether it was still pursuing further action as it had indicated previously. 

M1 made it clear that it will not be taking the matter further. Its assistant general manager for corporate communications Chua Hian Hou said: “We have accepted Singtel’s apology and its assurance that it will not engage in such practices in future.” 

Gushcloud co-founder Vincent Ha could not be reached for comments today, as calls to his mobile phone went unanswered. 

In the wake of the debacle, Gushcloud came up with a set of guidelines on good conduct for its staff when they are engaging social media “influencers”, a term used to describe those who have a substantial following on social media platforms.

Discussions are taking place between industry players and the Advertising Standards Authority of Singapore (ASAS) to create guidelines for the industry.  ASAS had said it was reviewing the Singapore Code of Advertising Practice (SCAP). 

Direct Marketing Association of Singapore chairperson Lisa Watson said that while she was for adding more guidelines to the code to help educate consumers and guide marketers, she was unsure about the benefits of having regulations. “Most content service providers have clear standards of transparency - both in the old public relations world and today’s environment,” she said in an email response. “Before a campaign, one should always take the ‘headline test’ (would it be a good or bad day if your actions made the headline news?). I doubt either of these parties (Singtel or Gushcloud) thought this one through.” Technology blogger Alfred Siew felt there was no need for guidelines, as the potential public backlash would keep marketers in check.  

“Consumers would show their displeasure at this kind of marketing. It’s misleading and it’s not real, not to mention dishonest. I think there is no need for so many rules as long as the market is clear in its response - Singtel was slammed for this in public,” he said. 

IDA’s warning to Singtel also sent out a clear signal that the industry will not tolerate such practices, he added.

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