Company Apologizes and Reverses Decision
Oriental Kopi, a popular Johor-based coffee chain, issued an apology and quickly reversed its decision to raise its service charge from 10% to 15% on the first two days of Chinese New Year.
In a Facebook post, the company assured customers that the service fee would remain unchanged at 10%.
The post read, “We are very sorry for the inconvenience caused over the past few days,” acknowledging the confusion and frustration caused by the initial announcement.
The reversal aimed to address customer concerns and ensure a more positive experience during the festive season.
Backlash and Reason for the Apology
The apology followed significant backlash from netizens after the initial decision to raise the service charge went viral on Threads.
One user expressed confusion over the change and wondered who benefited from the increased charge.
Some simply questioned the legal grounds for such a move.
Others criticized the decision more harshly. Stating that businesses should absorb the extra costs during the festive period instead of passing them on to customers.
Another user pointed out that if Oriental Kopi’s action went unchecked, other businesses might adopt similar practices.
“If this store gets away with it, other stores will follow suit and randomly raise their service charges too.”
Ministry Takes Action
Following the social media backlash, the Ministry of Domestic Trade and Cost of Living (KPDNHEP) has stepped in to address the issue.
According to China Press, the ministry stated that businesses should not raise service charges during the festive period.
To hold those accountable, the ministry’s enforcement division will summon the restaurants accused of raising their service charges during this time to get their side of the story.
“The Ministry has taken action through the enforcement division to investigate the parties involved in the reported cases and will summon the relevant restaurants for discussions to determine and clarify the reasons for increasing or altering service charges.”
In addition, the Ministry issued a stern reminder to businesses that unjustified price hikes could lead to legal consequences under the Price Control and Anti-Profiteering Act 2011, with hefty fines for violations.
If found guilty,
- A company could face a fine of up to RM500,000 (approx. 153,760 SGD), or up to RM1 million (approx. 307,648 SGD) for repeat offenders.
- Individuals could be fined up to RM100,000 (approx. 30,764 SGD), or face imprisonment for up to 3 years, or both. For repeat offenders, fines could increase to RM250,000 (approx. 76,933 SGD), or imprisonment for up to 5 years, or both
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