Beauty chain Salon One given warning for making false health claims over its treatments

SINGAPORE: A beauty salon chain has been issued a warning after it was found to have made false claims about the health benefits derived from its treatments, as well as the discounts it offered, the Competition and Consumer Commission of Singapore (CCCS) said on Thursday (May 18). 

The chain, Salon One Beauty Salon, was also found to have engaged in pressure sales tactics at some of its outlets. The chain has outlets in Ang Mo Kio, Bukit Batok, Bukit Panjang, Clementi, Marine Parade, Pasir Ris and Tampines. 

According to CCCS, Salon One made unsubstantiated representations about its treatments. This included claims that their herbal head spa treatment was able to prevent Alzheimer's disease, brain stroke, cerebral infarction, cerebral thrombosis and cerebral hemorrhage. 

The treatment also claimed to enhance memory, said the competition watchdog. 

"Such representations were also made to certain consumers who were not able to reasonably ascertain if the claimed efficacy and health benefits of the treatments existed." 

An investigation by CCCS found that the chain engaged in unfair practices between October 2017 to August 2022. 

FALSE DISCOUNT CLAIMS

Besides the false claims about its treatments, Salon One had claimed that there were price discounts for basic haircuts for members and non-members. However, these discounts never existed as they were discounted from prices that were never offered to consumers. 

The competition watchdog found that two of the chain's outlets - Salon One Bukit Batok and Salon One MP560 in Marine Parade - had falsely claimed that a price discount of S$359 (US$267) existed for both their TCM meridian eye treatment and spleen, and stomach naval candling services. 

However, the actual price discounts for the two services were only S$159 and S$59 respectively. 

The chain's outlet in Bukit Batok also claimed that a discount of S$138.10 existed for its deep water oxygen clean management service when the actual discount was only S$98.10. 

Through banners placed outside their operating premises, the two outlets made false representations that led consumers to believe that the discounted prices for certain services were only available for a limited period, due to an "opening promotion", creating a false sense of urgency. 

However, CCCS found that these banners were on display and the discounted prices were available for a sustained period that went far beyond the opening dates of both outlets. 

Investigations also found that some of the chain's outlets had pressured consumers to purchase certain services or products, even though the customers had declined or expressed no interest. 

REFERRED TO COMPETITION WATCHDOG

The Consumers Association of Singapore (CASE) had referred Salon One Ang Mo Kio and three other outlets in Tampines, Marine Parade and Clementi to CCCS in October 2020, said the competition watchdog. 

This was after consumer complaints against these four outlets persisted despite them entering a Voluntary Compliance Agreement with CASE in October 2019. 

CASE also issued a company alert on the Ang Mo Kio outlet regarding aggressive pressure selling tactics in July 2019. 

Following the referral, further checks by CCCS found that four other Salon One outlets in Bukit Batok, Pasir Ris, Marine Parade and Bukit Panjang had engaged in similar conduct. 

CCCS then began investigations into the chain's conduct in July 2021. 

In a separate Facebook post on Thursday, CASE President Melvin Yong said the association has received more than 130 complaints against Salon One since January 2017. 

According to Mr Yong, the consumers reported that the salon staff were aggressive in promoting additional packages during their treatment and did not allow them to leave until they signed new packages. 

In the course of investigations, CCCS said the beauty chain took active steps to change its business practices in compliance with the Consumer Protection (Fair Trading) Act (CPFTA).

It also removed all false or misleading claims in their marketing materials related to price benefits, promotions, as well as the efficacy of certain treatments in preventing medical conditions. 

Salon One has also given an undertaking to CCCS to make sure its staff do not exert undue pressure on consumers to purchase their services or products. 

A term has been included in their contracts, invoices or receipts, allowing consumers a five-day cooling-off period to cancel their transactions. 

The chain will also not make claims or guarantees about the benefits of their treatments or products unless they are substantiated by scientific data or other "objectively verifiable evidence". 

An internal compliance policy has been put in place to make sure its marketing materials and practices comply with the CPFTA.

"CCCS has accepted the undertakings and issued a warning to the Salon One Entities after considering the facts of the case and the steps taken by the Salon One Entities to address CCCS’s concerns," it said. 

The competition watchdog added that it will initiate further investigations if any of the chain's outlets breaches the undertaking or engage in any other unfair practices. 

"If necessary, CCCS will seek declarations and court injunctions against persistently errant suppliers." 

BEAUTY INDUSTRY "CONSISTENTLY" SEE HIGH RATE OF COMPLAINTS

CCCS chief executive Sia Aik Kor said the beauty industry has "consistently" seen a high rate of consumer complaints. 

"Businesses should provide consumers with clear and accurate information on their prices, discounts and promotions.

"Claims about the benefits, performance and qualities of their products and services should be accurate and substantiated," said Ms Sia. 

She added that CCCS will ramp up efforts to educate suppliers on the practices that they should avoid to comply with fair trading laws. 

"We also want to empower consumers to be able to say 'No' when they come across situations such as pushy sales tactics, offers that seem too good to be true or dubious claims," she said. 

Mr Yong said the beauty industry is an area of concern for CASE. In 2022, it received more than 1,400 complaints, where one in four complaints relate to misleading and false claims, as well as pressure sales tactics. 

He added that the consumer watchdog's enforcement actions against Salon One send a "strong signal" to the industry that businesses that engage in persistent unfair practices in consumer transactions will be taken to task.

"We hope this will deter businesses from engaging in unfair practices that are detrimental to consumer interests," said Mr Yong. 

CASE also called on the government to mandate a cooling-off period for the beauty industry. This would give consumers sufficient time to consider their purchases and if they change their mind, they would then have the right to cancel and obtain a refund. 

Mr Yong advised consumers to patronise CASETrust accredited beauty businesses as they already offer a five-day cooling off period for consumers.

Consumers who encounter unfair practices can approach CASE for assistance via www.case.org.sg or call 97958397.