Agoda

Lawyers representing a consumer advocacy group speak to reporters on Wednesday after filing a cease and desist lawsuit against online travel agency Agoda. | JIJI

A nonprofit group in Saitama Prefecture filed a cease and desist lawsuit against online travel agency Agoda on Wednesday, saying the firm’s terms of service that limit it from being liable for compensation violate consumer protection laws.In filing the lawsuit to the Saitama District Court, the Saitama Organization To Get Rid of Consumer Damage claimed that Agoda’s terms of service include unfair clauses violating Consumer Contract Law. These clauses absolve the Singapore-based travel agency of legal obligations, particularly regarding damages claims for its hotel reservation website. The consumer advocacy group contends that the lack of clarity about the company’s liability hurts users’ interests.The group pointed out that even if the firm were to assume responsibility, it would only be liable for up to $250. If the travel service cost less than that, the company would only pay that amount due to its clauses.

1. Agoda presented certain search results as “best match”, suggesting that such rankings were the most compatible results for its users based solely on their search criteria such as travel dates or the ratings of items listed. However, Agoda’s search results from its algorithm also took into account its potential earnings when generating these results.

A severance agreement, which was seen by CNA, said employees who make reports to government agencies such as MOM will no longer be entitled to a severance package.

In one portion of a severance agreement seen by CNA, employees were instructed not to make reports with any government agencies, statutory boards or trade unions, including MOM, the Tripartite Alliance for Dispute Management (TADM) and TAFEP.

Agoda's recent retrenchment of 50 staff in Singapore has sparked controversy over alleged gag clauses in severance agreements. These clauses reportedly warned employees against contacting the Ministry of Manpower (MOM) or unions, threatening forfeiture of payouts. MOM has launched an investigation, while NTUC and SISEU condemned the practice as a violation of worker rights, according to the Straits Times.

In a severance document circulated on social media, affected staff were instructed not to report the retrenchment to MOM, the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep), government agencies, statutory bodies and trade unions.

In one portion of a severance agreement seen by CNA, employees were instructed not to make reports with any government agencies, statutory boards or trade unions.

Online travel booking platform Agoda apologized for including “inappropriate” language as part of severance agreements in Singapore, after drawing criticism for warning laid-off staff not to raise the matter to authorities or labor unions.

SINGAPORE: Online travel platform Agoda has axed its customer support roles in its Singapore, Hungary and China offices while creating new positions in other geographic locations, the company confirmed on Wednesday (Sep 17).

Employees were told not to make reports to any government agencies, statutory boards or trade unions, and to refrain from initiating any mediation requests, claims or proceedings against the company. If they did so, they would lose their severance payments.