Qoo10 under investigation over payment delays to vendors

The police are reportedly investigating Singapore-based eCommerce platform Qoo10. This is after local businesses were reportedly hit by payment delays. 

In a statement to CNA, the Singapore Police Force said that reports were lodged against Qoo10 and that investigations are ongoing. 

Following the payment delays, several vendors have reportedly pulled its products from the platform. This includes big and small brands such as instant beverage retailer Gold Kili and bak kwa seller Fragrance, according to CNA.

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In addition, some vendors have also reportedly sought help from the small claims tribunals of the State Courts. 

MARKETING-INTERACTIVE has reached out to Qoo10 for more information. 

This comes as South Korea said that it will provide US$400 million in financial support to small businesses that were affected by payment delays from Qoo10's two eCommerce platforms, TMON and WeMakePrice earlier in August, according to Reuters. 

According to Reuters, payment delays have prompted South Korean financial authorities to launch an investigation with some vendors cutting ties with the platform and customers demanding refunds.

Missed payments by the eCommerce platforms have reportedly amounted to 210 billion won (US$152 million). 

Following which, deputy prime minister and minister for trade and industry Gan Kim Yong have said that the government has been closely monitoring developments in South Korea regarding Qoo10's subsidiaries. 

Gan added that the government is also in touch with Qoo10 to assess whether and how this may affect its operations in Singapore. 

"Merchants facing payment delays should raise their concerns with Qoo10. If the concerns remain unresolved, there are established processes in place to assist merchants in resolving commercial disputes, inclusive of debt recovery," said Gan.

"For example, they can consider filing a civil claim with the courts. Merchants who face cash flow difficulties because of the payment delays may contact any of the participating financial institutions listed on Enterprise Singapore’s website to apply for the Enterprise Financing Scheme," he added. 

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