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Sterra's brand reputation murky over false ads and misleading claims

Sterra's brand reputation murky over false ads and misleading claims

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Air and water purifier brand Sterra has seen negative sentiments against its brand rise to 96.8% and 2.9% mixed after it was found to be making false and misleading claims on the quality of Singapore's tap water, as well as other claims relating to its air and water purifiers.

This was according to media intelligence firm Truescope which also revealed that there was extensive coverage on the news across both mainstream media and social media. 

There were more than 20 mainstream media pickups across print, broadcast and online news and over 16,900 social engagements it said. The highest traction emerged on Mothership’s TikTok post on 31st August, gathering over 6,000 engagements alone as of 2nd September. 

Don't miss: Sterra apologises for false ads and misleading claims on purifiers and SG tap water

The majority of netizens criticised Sterra, surfacing accusations that the company misled consumers through false advertisements and questionable manufacturing claims, added Truescope. 

Critics argue that Sterra and its board and influencers should face penalties for allegedly misleading Singaporeans and calling for a public boycott of its products.

Netizens also took the chance to share their experiences with Sterra’s defective products, delayed services, and questionable warranty practices, with demands for compensation for affected consumers.

Some netizens also used this example to urge authorities to monitor such actions closely, especially regarding misleading claims about Singapore's tap water quality.

What happened?

This comes after Sterra apologised and said that it will cease making false and misleading claims on the quality of Singapore's tap water, as well as other claims relating to its air and water purifiers.

The apology came after the Competition and Consumer Commission of Singapore (CCCS) first initiated the investigation earlier this year under its fair-trading laws after receiving several complaints regarding an online advertisement by Sterra in 2024. 

The advertisement falsely claimed that Singapore's tap water is unsafe for direct consumption without being filtered using water purifiers sold by Sterra. 

Investigations by CCCS also revealed that Sterra had made other false and misleading claims on its website between February 2023 and March 2024. It had claimed that three of its models of air purifiers were made in Singapore when they were in fact made in China, and that two models of Sterra's water purifiers were marketed as Korean when they were neither sourced from nor manufactured in Korea. The two models were manufactured in China, said CCCS. 

On top of that, the brand held false discounts. The “usual” (i.e. pre-discount) prices that Sterra claimed for comparison with its discounted price were not genuine previous prices and, in fact, never offered to any customer, added CCCS. 

Following the investigation, Sterra claims that it will stop its unfair trade practices and put in place an internal compliance policy to ensure that its marketing materials comply with fair trading laws. 

In addition, it will cooperate with the Advertising Standards Authority of Singapore (ASAS), PUB, Singapore’s National Water Agency to resolve all complaints by consumers.  Sterra will also publish clarifications in relation to any advertisements that are found to be misleading by ASAS or the public agencies.

“CCCS takes a firm stance against businesses that make false or misleading claims in their marketing. Such practices hinder the ability of consumers to make informed decisions, which is essential for well-functioning markets. They also erode consumer trust and undermines the ability of honest businesses to compete on a level playing field,” said CCCS’s chief executive, Alvin Koh. 

"The CCCS has just announced that it has investigated Sterra, a supplier of water purifiers, regarding false and misleading claims. These included false claims that Singapore’s tap water was unsafe for consumption without filtration, false claims about where some of its water purifiers were manufactured, misleading labelling that some of its products were Korean, and false discounts. The CASE has received seven and 10 complaints against Sterra in 2022 and 2023 respectively. In 2024 till date, we have received four complaints. The majority of complaints pertain to defective products, unsatisfactory services during installation and delays in delivery. CASE will continue to work closely with CCCS to take action against companies that engage in unfair business practices and mislead consumers," added Melvin Yong, CASE's president. 

In tandem, Sterra has also put up a public apology in relation to the advertisement. According to the CCCS, the apology has to remain on its website and social media channels for 30 days. 

In its public apology, Sterra said "Following the outcome of investigations conducted by the CCCS, Sterra apologises for a Facebook advertisement published in February 2024 that misled consumers into thinking that Singapore tap water is unsafe for consumption without using our water purifier."

"Moving forward, we are committed not to publish false or misleading ads, including those in relation to the quality of Singapore tap water. We value our customers and will continue to work on providing the best for them. We thank the CCCS and national water agency PUB for alerting us of their concerns and the opportunity to make things right," it added. 

In February this year, PUB issued a statement calling Sterra's Facebook ad on the quality of Singapore's tap water "misleading". 

In the ad, Sterra claimed that there is bacteria and algae in Singapore's local tap water in order to promote one of its water purifiers. The video showed a glass being filled with water from a tap and then a sample of the water being placed under a microscope. Under the microscope, microorganisms could be seen. 

The ad was picked up by PUB which told MARKETING-INTERACTIVE that it take a "serious view" on water quality. 

"Tap water in Singapore is safe to drink. Every day, water samples are taken from our distribution network across the island and tested," said PUB. "Our tap water complies with the Environmental Public Health (Water Suitable for Drinking) (No.2) Regulations 2019 and is well within the WHO Guidelines for Drinking-Water Quality. There is no need for any point-of-use (POU) water treatment or filtering devices to further treat the water."

PUB added that the ad by Sterra was misleading and that it has since issued a number of advisories to Sterra to emphasise that the company should cease such "misleading advertisements".

"We will be issuing another advisory to Sterra in response to this latest advertisement," it said. 

The ad was also picked up by a PhD student at the Genomics and Ecology of EuKaryotes (GEEK) Lab at Nanyang Technological University's Asian School of the Environment. In an Instagram Reel, the student, Clarence Sim debunked Sterra's claims saying that the water it sampled very likely came from a pond. 

He identified diatom shells and leaf debris which are "common indicators" that the sample is from a pond. Sim also pointed out that what Sterra called bacteria was actually nano-sized algal cells that were unidentifiable. 

"Stop scaring Singaporeans that tap water is nasty. Just to be clear, Singapore’s tap water is safe for consumption, and you will not find these protists," Sim said. He added that Sterra should not use information they do not understand fully in their ads. 

Sim then took a sample of Singapore's tap water and put it under his own microscope to show that there was actually nothing in the water. 

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