Beauty chain agrees S$1 million refund scheme after CCS probe into pressure tactics

CASE previously said that about half of the complaints it received involved consumers who had spent more than S$10,000 on packages and products, while at least 40 per cent of the complainants were 60 years old and above. 

Complaints against the Beautique brand involved its outlets in Ang Mo Kio, Orchard Plaza, The Centrepoint and Toa Payoh while those against The Mineral Boutique brand involved its outlets in NEX, Jewel and Wheelock Place.

The matter was referred to CCS for investigation under the Consumer Protection (Fair Trading) Act.

CUSTOMERS’ CPF BALANCES WERE CHECKED

Calling the pressure tactics “deliberate and calculated”, the competition and consumer watchdog said investigations found that DNA Brands employees would also ask customers how many credit cards they had, framing it as a check for promotions.

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

These tactics were cranked up for elderly customers, with DNA Brands employees performing checks on their Central Provident Fund (CPF) balances.

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

“Some staff even helped consumers change their CPF withdrawal limits and directed them to nearby bank branches or ATMs to withdraw cash.”