But the cost of legal action may outweigh the amount recovered, according to legal experts.
SINGAPORE: Companies who find that the platforms they advertise with have falsely stated their circulation numbers or reach may take the company to court under civil law, lawyers told CNA.
An SPH Media spokesperson indicated other inconsistencies with circulation numbers, including lapsed contracts which continued to be counted in data, with a project account injected with additional funding to purchase fictitious circulation.TAKING THE MATTER TO COURT "Depending on the terms of the contract, parties may also pursue civil litigation to terminate or void a contract," he added.
The second element is trickier, said Mr Tan, as the client would have to prove that it would not have entered into the contract if not for false circulation figures. There might not have been an inducement if the client signed the contract based on other factors and attributes of the company, such as its brand name.
The lawyer added that the legal fees involved in the litigation process might outweigh the amount advertisers may recover, making it impractical to take the matter to court. If there was a valid arbitration clause in the contract between the advertiser and the platform, and the requirements for going to arbitration were met, the advertiser could consider initiating arbitration, Mr Foo said.
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