The Competition and Consumer Commission of Singapore (CCCS) has flagged multiple concerns regarding Osim's promotional practices and product labelling, citing potential misleading representations to consumers. The company has since taken corrective measures.
Key Issues Identified by CCCS:
- Lack of Pre-Purchase Product Suitability
Disclosure
- Consumers could only access critical suitability information—such as restrictions for individuals with specific health conditions—after purchasing and opening the packaging.
- Due to Osim's no-refund policy post-opening, affected customers were unable to obtain refunds.
- Misleading Use of "Stanford Medicine"
Logo
- Osim's promotional materials featured the Stanford Medicine logo, potentially implying institutional endorsement, when in fact it was only endorsed by a medical consultant with previous lecturing experience at Stanford University.
- Potentially Misleading "Conformité
Européenne" (CE) Mark Representation
- Osim products were labelled with the CE mark and the term "Certified," which could mislead consumers into believing they were certified by a regulatory authority. This was self-declared by manufacturers but does not involve an official certification process.
- Questionable Promotional Pricing Claims
- CCCS found that Osim's "usual" prices displayed alongside promotional prices were not genuinely representative of prior retail pricing, thereby misleading consumers about the actual discount value.
Corrective Actions Taken by Osim:
- Removal of the "Stanford Medicine" logo from marketing materials.
- Amendments to CE mark labelling, eliminating the term "Certified."
- Enhanced disclosure of product suitability information on its website and in-store, with sales representatives instructed to inform customers before purchase.
- Revised pricing practices to ensure promotional discounts reflect actual savings.
- Implementation of an internal compliance policy to align with Singapore's fair trading laws.
Regulatory Implications:
Businesses are reminded to observe accurate and sufficient disclosure in consumer transactions, and comply with fair trading laws, to reduce disputes and strengthen consumer trust.
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