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DNA Brands to set aside $1 million as refund for customers after unfair sales tactics

Those who purchased products or services from specified outlets from Jan 1, 2023, onwards and experienced such practices may be eligible for refund
DNA Brands to set aside $1 million as refund for customers after unfair sales tactics
Following the conclusion of the Competition and Consumer Commission of Singapore's review on alleged unfair sales practices, the firm has committed up to $1 million to refund eligible affected customers.
PHOTO: Google Maps/Mineral Boutique

DNA Brands will set aside up to $1 million with an escrow agent to manage refunds to customers who were pressured into buying products or services from its specified brands, said the Competition and Consumer Commission of Singapore (CCS).

"A visit for a routine beauty treatment should not end with consumers feeling pressured into making purchases they never intended," the commission said on Thursday (July 30), after completing its review on DNA Brands.

The Singapore-based beauty and wellness operator manages brands such as The Mineral Boutique, Beautique, SAE-REN, Jingran, Harmonix, Allura and Comfeet.

In October last year, Singapore's consumer watchdog received 53 complaints against DNA Brands, accusing it of misleading and hard selling packages or products, amounting to nearly $1 million.

Specifically, the complaints filed with the Consumer Association of Singapore (Case) involved beauty salons operating under the Beautique name and wellness retail outlets under The Mineral Boutique label.

AsiaOne reported then that the complainants, including at least 20 elderly consumers, had been misled or pressured by sales assistants into buying excessive beauty packages or products.

Investigation findings

Revealing some details of its findings, the commission said it found that an area manager and certain employees at DNA Brands had been using a coordinated set of pressure tactics since 2023.

These tactics, which CCS described as "deliberate and calculated", were intended to induce consumers into making purchases they did not intend to make.

Giving an example, the commission said that staff would apply facial masks on costumers even after their treatments had ended, keeping them trapped inside treatment rooms for sales pitches until they give in and make purchases.

Other tactics include asking consumers about the number of credit cards they held, on the pretext of checking for promotions, when they were actually assessing how much each consumer could spend.

But it did not end there — elderly customers were asked about their CPF balances.

The commission also found that in at least one instance, a customer was pressured into using CPF savings to pay for beauty packages and products.

Staff members also helped consumers change their CPF withdrawal limits and directed them to nearby branches or ATMs to withdraw cash, the commission found.

However, CCS also found that DNA Brands' directors did not personally direct or participate in these practices.

DNA Brands responds 

In a statement to the media, a DNA Brands spokesperson said the company acknowledges that certain employees engaged in conduct that fell short of the standards expected within the organisation.

"Upon becoming aware of the concerns, DNA Brands undertook internal reviews and took decisive disciplinary action against the personnel involved, including dismissals and suspensions from sales activities," he said, adding that the conduct did not reflect the standards DNA Brands expects across its operations.

It said it has since "acted decisively" to strengthen management oversight and implementing additional safeguards to help ensure that standards are consistently upheld— including enhancing  compliance framework, strengthening staff training, and introducing additional consumer protection measures across its operations.

All DNA-linked outlets will now also prominently display a 14-day refund policy for customers.

The spokesperson emphasised that consumer trust remains DNA Brands' top priority, and that it supports the refund framework established by CCS as part of the resolution.

Refund scheme

The refund scheme, which is separate from the 14-day refund policy, is intended for costumers who purchased products or services from specified DNA Brands outlets from Jan 1, 2023 onwards.

"Consumers who purchased products or services from specified DNA Brands outlets from Jan 1, 2023, onwards and experienced undue pressure or aggravating circumstances during their purchases may be eligible for a refund," CCS said.

The refund amount will vary, and the scheme will be administered by Case.

Consumers who believe they may have been affected can contact the consumer watchdog at 6277-5100 or online to check their eligibility and submit a claim.

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