Complaints of Pressure Sale Tactics at Hair and Beauty Salons
Ministry of Trade and IndustrySpeakers
Summary
This question concerns complaints regarding pressure sale tactics by hair and beauty salons and the measures implemented to protect vulnerable consumers like the elderly. Dr Tan Wu Meng inquired about the number of such reports received by CASE and CCCS and the proportion involving salons in HDB heartlands. Minister for Trade and Industry Chan Chun Sing reported 157 cases, noting that half were heartland-based and that such practices violate the Consumer Protection (Fair Trading) Act. He highlighted enforcement actions including Voluntary Compliance Agreements, court injunctions, and public listings of errant companies used to restrain suppliers from persisting in unfair practices. Further safeguards include educational talks for seniors through grassroots organisations and the development of CaseTrust accreditation schemes to promote fair and ethical industry conduct.
Transcript
57 Dr Tan Wu Meng asked the Minister for Trade and Industry (a) in the past one year, how many reports have been received by the Competition and Consumer Commission of Singapore or CASE regarding hair and beauty salons engaging in pressure sales tactics; (b) how many of these salons are located in HDB heartlands; and (c) what action has been taken to protect consumers, especially the elderly and other vulnerable groups.
Mr Chan Chun Sing: In the past year, the Competition and Consumer Commission of Singapore (CCCS) and the Consumers Association of Singapore (CASE) received a total of 157 reports regarding hair and beauty salons engaging in pressure sales tactics. Of these, approximately half were related to salons located in HDB heartlands.
Exerting undue pressure or influence on consumers to enter into transactions involving goods or services is not allowed under the Consumer Protection (Fair Trading) Act (CPFTA). Consumers can report such practices to CASE to seek their advice and assistance in obtaining redress from suppliers.
Under the CPFTA, CASE may ask a supplier who has engaged in an unfair practice to enter into a Voluntary Compliance Agreement (VCA) and cease such practices. The supplier may also be required to compensate any consumer who has suffered loss or damage as a result of the unfair practice, and also publicise the VCA. CCCS, as the administering agency of the CPFTA, is armed with investigation and enforcement powers to file for a Court injunction to restrain a supplier that persists in such unfair practices.
CASE works with grassroots organisations to educate consumers on how to shop wisely for beauty-related products and services. They hold regular awareness talks for senior citizens to educate them on consumer rights and how not to fall for pressure sales tactics. Consumers can also visit CASE’s website where they will find a detailed consumer advisory and a public listing of the companies that have been known to use aggressive pressure sales tactics. In addition, CASE has worked with the industry to develop CaseTrust accreditation schemes for spa and wellness providers. These schemes are a mark of fair and ethical conduct for accredited salons.
The Government takes a serious view on the use of pressure sales tactics, especially when they are used to take advantage of vulnerable groups. The Government will continue to work with CASE and CCCS to ensure that the interests of consumers, especially our seniors, are safeguarded.