S’pore beauty chain staff made customers feel ‘trapped’ in rooms till they agreed to make purchases, chain to refund S$1 million

Some employees of a beauty and wellness chain in Singapore, DNA Brands Co Pte Ltd, were found to have used high-pressure sales tactics to induce customers into making purchases they did not intend to make.

Following investigations, the chain has agreed to provide up to S$1 million in refunds to affected consumers, the Competition and Consumer Commission of Singapore (CCS) said on Jul. 30.

DNA Brands operates beauty and wellness outlets across Singapore under the brand names The Mineral Boutique, Beautique, SAE-REN, Jingran, Harmonix, Allura and Comfeet.

"Coordinated set of pressure tactics"

According to CCS, investigations found that since 2023, an area manager and several staff members had been using a "coordinated set of pressure tactics" to induce consumers into making purchases they had no intention of making.

The tactics were "deliberate" and "calculated", CCS said.

For instance, staff would apply facial masks on consumers even after their treatments had ended, in an effort to keep them "trapped" in treatment rooms while sales pitches continued until they agreed to make purchases.

Staff would also ask consumers how many credit cards they had, ostensibly to check their eligibility for promotions.

In reality, they were assessing how much each consumer could spend, CCS said.

They would also check the CPF balances of elderly consumers, and would help them change their CPF withdrawal limits and direct them to nearby bank branches or ATMs to withdraw cash.

In at least one case, a consumer was pressured into using their CPF savings to pay for beauty packages and products.

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

After investigations began, DNA Brands dismissed or suspended the staff involved and barred them from earning sales commissions.

The company also committed to ceasing unfair trade practices and putting in place stronger compliance measures, including formal disciplinary action against similar misconduct.

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

CCS said it will continue to monitor the matter and take further enforcement action if new complaints or unfair practices emerge.

CASE to administer refund scheme

Separately, DNA Brands will deposit up to S$1 million with an independent escrow agent to fund refunds for eligible consumers.

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.

The amount refunded will vary depending on the individual circumstances of each case.

Those who believe they may have been affected can contact the Consumers Association of Singapore (CASE) to check their eligibility and submit a claim through these channels:

• Hotline: 6277 5100 (Monday to Friday, 9am to 5pm)
• Online: https://complaints.case.org.sg

Alvin Koh, the chief executive of CCS, said consumers should never be made to feel "trapped" or "pressured" into spending money they did not intend to part with

"No one should ever feel that their retirement savings are at risk during a visit to a beauty salon," he added.

He said CCS does not intervene in every consumer dispute, and that cases involving wider consumer harm will be prioritised.

"Businesses must know that exploiting consumers through pressure tactics carries real consequences," he said.