DNA Brands Co, an operator of beauty and wellness outlets in Singapore, has committed to up to $1 million in refunds after it was caught pressuring customers into making unintended purchases.
The company, which owns brands such as The Mineral Boutique, Beautique, Sae-Ren, Jingran, Harmonix, Allura and Comfeet, has been using the sales tactics since 2023, an investigation from the Competition and Consumer Commission of Singapore (CCS) finds.
The tactics, carried out by an area manager and certain staff members, were described as “deliberate and calculated”.
The investigation reveals that staff would apply facial masks on consumers even after their treatments had ended, to keep them inside treatment rooms for sales pitches. They would ask consumers how many credit cards they had, framing it as a check for promotions, but in fact, to assess how much each consumer could spend.
For elderly consumers, the staff asked about their CPF balances and pressured them into using the savings to pay for beauty packages and products.
The CCS found that DNA Brands’ directors neither directed nor participated in these practices.
The company has pledged to deposit up to $1 million with an independent escrow agent to refund consumers. Those who purchased products or services from specified outlets from January 1, 2023, and experienced pressure or aggravating circumstances during their purchases may be eligible for a refund.
DNA Brands has dismissed or suspended the staff involved and barred them from earning sales commissions. The company has also committed to cease all unfair trade practices and put in place stronger compliance measures.
All outlets will also prominently display a 14-day refund policy for customers.
- Further reading: ‘Dark patterns’: Singapore online retailers caught misleading shoppers.