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4 local hotels called out for exchanging sensitive customer information

Four local hotels have been called out by the Competition and Consumer Commission of Singapore (CCCS) for discussing and exchanging confidential information from 2014 to 2015. The hotels are Capri by Fraser Changi City Singapore, Village Hotel Changi, Village Hotel Katong and Crowne Plaza Changi Airport Hotel.

CCCS confirmed that the investigation into the hotel sector was made on its own detection. Through the investigations, it was found that sales representatives of Capri and Village Hotels had discussed and exchanged commercially sensitive information in connection with the provision of hotel room accommodation in Singapore to corporate customers from around 3 July 2014 to 30 June 2015.

In addition, sales representatives of Capri and Crowne Plaza hotels separately discussed and exchanged commercially sensitive information in connection with the provision of hotel room accommodation in Singapore to corporate customers from at least 14 January 2014 to 30 June 2015.

It was revealed by CCCS, in a press statement, that the sales representatives belonging to competing hotels shared information on non-public bid prices, as well as details of confidential price reduction negotiations between customers and hotel representatives. CCCS added that the exchange of such commercially sensitive information would reduce the competitive pressure on prices/contract terms offered by competing hotels to their corporate customers.

CCCS said the moves by the hotels had infringed section 34 of the Competition Act as sharing confidential, customer specific, commercially sensitive information in connection with the provision of hotel room accommodation in Singapore to corporate customers is unlawful. As such, the hotels were issued a proposed infringement decision in the form of a written notice. The notice states the facts and how the CCCS made the assessment before finalising its decision. It also allows the hotel groups to provide any information for CCCS’s consideration.

The issued parties have been given six weeks to provide any supporting documents for CCCS’ consideration.

(Photo courtesy: 123rf)

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