Consumer watchdog puts beauty chain on alert list after complaints; one customer allegedly charged S$370,000

SINGAPORE: Singapore's consumer watchdog on Wednesday (Oct 15) warned the public about a beauty chain after receiving dozens of complaints, including one case in which a customer was allegedly charged at least S$370,000 (US$286,000) for products and packages.

Between Aug 1, 2024, and Oct 14 this year, CASE received 53 complaints against DNA Brands Co, which operates beauty salons under the Beautique brand and retail stores under The Mineral Boutique brand, among others.

Most consumers said they were misled or pressured by sales assistants into purchasing excessive packages or products, involving a total amount of more than S$980,000, said CASE in a news release.

In half of the complaints, over S$10,000 was spent on packages and products. At least 40 per cent of the complainants were 60 years old and above.

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

"CASE invited the company to sign a Voluntary Compliance Agreement to stop the unfair trade practices, but it declined," said CASE president Melvin Yong. 

"CASE has referred the matter to the Competition and Consumer Commission of Singapore for investigation under the Consumer Protection (Fair Trading) Act."

"Unfair practices remain a persistent problem in the beauty industry."

Consumers are strongly advised to exercise caution when approached with high-pressure sales tactics, especially for big-ticket items such as beauty and wellness packages, said CASE.

It added that consumers should take time to carefully consider the offer, compare prices with other retailers, and seek a second opinion where possible.

CASE also encouraged consumers to ask for clear written information on the products and services being offered, including their purpose, pricing, and validity period. Consumers should also request and keep receipts and documentation of all transactions.

CASE also advised consumers to patronise CaseTrust-accredited beauty, spa and wellness businesses, which offer a five-day cooling-off period. During this time, consumers may obtain a refund for unutilised services if they decide not to proceed with their packages.

CaseTrust-accredited businesses are also committed to maintaining a stress-free treatment environment, with a strict “no selling” policy during treatments.

"At the same time, we continue to call on the government to introduce a mandatory cooling-off period for prepaid beauty packages, so that consumers have recourse when faced with unfair practices," said Mr Yong.

Beautique and its parent company DNA Brands Co issued a statement on Wednesday evening laying out what they said were clarifications for certain cases. 

Regarding the 53 complaints received by CASE, they said that figure represented less than 1 per cent of their total customer base. They added that they recognise there is always room for improvement and said they were committed to further reducing incidents of customer dissatisfaction. 

For the case where a customer was charged at least S$370,000 for products and packages, Beautique and DNA Brands Co said the customer had utilised the majority of the beauty packages over three years. 

"The matter was initially headed for resolution through Singapore’s legal system; however, at the invitation of CASE, we agreed in good faith to have the issue resolved through mediation. We are currently awaiting the mediation date to be set by CASE and will fully cooperate with the process to reach a fair outcome," said the statement. 

They also said that the company's written correspondence with CASE regarding the Voluntary Compliance Agreement was "well-documented by both parties". 

"We are currently awaiting their formal reply and will respond accordingly once received. Our intention has always been to engage constructively and transparently with CASE and other relevant authorities," they added.