CCS gets up to $1m refund pledge over DNA Brands’ unfair sales tactics

Probe found staff assessed customers’ credit capacity and CPF savings.

The Competition and Consumer Commission of Singapore (CCS) has secured a commitment of up to $1m in refunds for consumers affected by unfair sales practices at DNA Brands Co Pte Ltd’s beauty and wellness outlets.

This follows an investigation by the competition watchdog that found an area manager and certain employees had used coordinated pressure tactics since 2023 to induce customers into unintended purchases.

DNA Brands operates outlets under The Mineral Boutique, Beautique, SAE-REN, Jingran, Harmonix, Allura, and Comfeet.

“Staff applied facial masks on consumers even after their treatments had ended, to keep consumers trapped inside treatment rooms for sales pitches until they gave in and made purchases,” CCS said.

Employees also asked customers how many credit cards they held to assess their spending capacity. 

In some cases involving elderly consumers, staff checked Central Provident Fund balances and helped customers change withdrawal limits, it added.

Meanwhile, the investigation did not find that DNA Brands’ directors personally directed or participated in the practices. The company has since dismissed or suspended the staff involved and barred them from earning sales commissions.

It also committed to stop unfair trade practices, strengthen compliance measures, and display a 14-day refund policy at all linked outlets.

Under the separate refund scheme, the group will deposit up to $1m with an independent escrow agent.

Consumers who bought products or services from specified outlets from 1 January 2023 and experienced undue pressure or aggravating circumstances may be eligible for refunds.

The Consumers Association of Singapore will administer the scheme, with refund amounts assessed based on the circumstances of each case.