CCS Secures $1 Million Refund Commitment for Consumers After Investigation into Unfair Beauty Sales Practices at DNA Brands

Following an investigation into the sales practices of DNA Brands Co Pte Ltd ("DNA Brands"), the Competition and Consumer Commission of Singapore (“CCS”) has secured a commitment of up to $1 million to refund affected consumers.

CCS’s Investigation Findings

CCS’s investigations revealed that since 2023, an area manager and certain staff members at DNA Brands had been using a coordinated set of pressure tactics to induce consumers into making purchases they did not intend to make.

The tactics were deliberate and calculated. 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.

The pressure did not stop there. Staff would ask consumers how many credit cards they had, framing it as a check for promotions, but in reality, they were assessing how much each consumer could spend. For elderly consumers, the tactics went even further. CPF balances were checked, and in at least one case, a consumer was pressured into using their CPF savings to pay for beauty packages and products. Some staff even helped consumers change their CPF withdrawal limits and directed them to nearby bank branches or ATMs to withdraw cash.

CCS's investigations did not find that DNA Brands' directors personally directed or participated in these practices. After CCS commenced investigations, DNA Brands 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, imposing formal disciplinary action against similar misconduct. All DNA-linked outlets will also prominently display a 14-day refund policy for customers going forward. CCS continues to monitor the matter and will not hesitate to take further enforcement action if there are new complaints or unfair practices.

Refund Scheme for affected consumers

Separate from the 14-day refund policy, DNA Brands will deposit up to $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 1 January 2023 onwards and experienced undue pressure or aggravating circumstances during their purchases may be eligible for a refund. The refund amount will vary based on individual circumstances of each case.

The refund scheme will be administered by the Consumers Association of Singapore (“CASE”).

For full details on the refund scheme and eligibility criteria, please visit https://go.gov.sg/refundscheme. Refer to Annex A: Infographic on Refund Scheme [PDF, 158.56 KB] for a quick overview of the refund process.

Please refer to the media release [PDF, 202.57 KB] for more details.