DNA Brands Co, a Singapore-based firm that operates a chain of beauty and wellness centers, has pledged to issue refunds worth up to $1 million in response to accusations of coercing clients into making unwanted purchases. The firm, which oversees brands such as The Mineral Boutique, Beautique, Sae-Ren, Jingran, Harmonix, Allura, and Comfeet, has reportedly employed these controversial sales strategies since 2023.
Manipulative Sales Tactics
According to an investigation by the Competition and Consumer Commission of Singapore (CCS), these high-pressure tactics were deployed by an area manager and certain staff members and were portrayed as “deliberate and calculated.” The inquiry uncovered that staff had been applying facial masks onto clients even after their treatments had concluded, essentially confining them within treatment rooms for sales pitches. Staff members would then inquire about the number of credit cards clients possessed, purportedly to check for applicable promotions, but actually to gauge their potential spending capacity.
In the case of elderly clients, staff members would probe about their CPF balances and coerce them into utilizing these savings to purchase beauty packages and products. The investigation by the CCS, however, found no evidence that DNA Brands’ directors either directed or participated in these practices.
Company Response
In response to these findings, DNA Brands has promised to set aside up to $1 million with an independent escrow agent to refund affected consumers. Refunds may be available to those who made purchases from specified outlets since January 1, 2023, and experienced undue pressure or distressing circumstances during their transactions.
The company has further taken disciplinary action against the involved staff, either through dismissal or suspension, and has revoked their ability to earn sales commissions. In addition, DNA Brands has vowed to cease all unfair trade practices and to implement enhanced compliance measures. All outlets will also prominently display a 14-day refund policy for customers’ benefit.
Questions & Answers
What actions has DNA Brands taken in response to the investigation?
DNA Brands has pledged to issue refunds worth up to $1 million to affected customers, dismissed or suspended the staff involved, and committed to ending all unfair trade practices. The company will also implement stricter compliance measures.
Who is eligible for the promised refunds?
Customers who made purchases from specified DNA Brands outlets since January 1, 2023, and experienced pressure or uncomfortable situations during their transactions may be eligible for a refund.
What changes will be made at DNA Brands outlets?
All DNA Brands outlets will prominently display a 14-day refund policy. The company has also committed to ending all unfair sales practices and implementing stronger compliance measures.
