Enforcement Against Beauty and Wellness Businesses under Consumer Protection (Fair Trading) Act for Pressure Selling or Unfair Practices
Ministry of Trade and IndustrySpeakers
Summary
This question concerns enforcement actions against beauty and wellness businesses for pressure selling and unfair practices under the Consumer Protection (Fair Trading) Act. Mr Melvin Yong Yik Chye asked about the number of businesses penalised over the past five years and whether the enforcement regime sufficiently deters repeat offenders. Minister Dr Tan See Leng replied that the Competition and Consumer Commission of Singapore has taken action against 15 beauty and wellness businesses since 2022. Among these, 13 businesses provided undertakings to halt unfair practices and take remedial actions, while court injunctions were obtained against two. He added that non-compliant businesses face contempt proceedings, and the Government is reviewing the enforcement framework to ensure adequate deterrence.
Transcript
62 Mr Melvin Yong Yik Chye asked the Minister for Trade and Industry (Energy and Industry) (a) over the past five years, how many beauty and wellness businesses have been subject to enforcement action under the Consumer Protection (Fair Trading) Act for pressure selling or unfair practices involving prepaid packages; and (b) whether the current enforcement regime sufficiently deters repeat offenders.
Dr Tan See Leng: Under the Consumer Protection (Fair Trading) Act, it is an unfair practice for businesses to exert undue pressure or influence on a consumer to enter a transaction. The Competition and Consumer Commission of Singapore (CCS) may investigate and take enforcement actions against businesses that engage in egregious unfair practices and, where appropriate, seek Court declarations and injunctions to stop such practices.
From 2022 to date, the CCS has taken action against 15 businesses in the beauty and wellness sector for engaging in pressure selling or other unfair practices involving prepaid packages. Of these, 13 businesses provided undertakings to CCS to cease the identified unfair practices, implement appropriate remedial actions and cooperate with CCS's monitoring measures. CCS obtained injunctions against the remaining two businesses, whose conduct warranted a stronger regulatory response.
The Government takes a serious view of businesses that engage in unfair practices. In addition to enforcement measures, such as the issuance of undertakings and Court injunctions, businesses that continue to persist in their unfair practices and breach the Court orders can be liable for contempt proceedings.
We are closely monitoring the incidence of cases and effectiveness of these measures as part of our review of the enforcement framework to ensure that it remains fit for purpose and provides sufficient deterrence against egregious businesses.