Osim overhauls product details after competition watchdog raises concerns

Source: Business Times
Article Date: 14 Feb 2025
Author: Chong Xin Wei

The Competition and Consumer Commission of Singapore finds its promotional discounts and labelling misleading.

The Competition and Consumer Commission of Singapore (CCCS) received a complaint in 2021 from a customer who purchased an Osim product and realised it was not suitable for use after opening the packaging and reading the manual.

This was one of the concerns that the competition watchdog flagged on Thursday (Feb 13) over the transparency level of Osim’s product information.

Other issues include the use of the “Stanford Medicine” logo in promotional materials for their massage chair.

This could mislead consumers into thinking that the product was endorsed by institutions that were associated with the logo, said CCCS.

“In fact, the technology used in Osim’s product was endorsed only by a medical consultant who had lectured at the Stanford University School of Medicine,” it added.

Osim also indicated on its website that some products were certified with the “Conformite Europeenne” mark.

“This could potentially mislead consumers into thinking the products were certified by an authority,” said CCCS.

It noted that the mark is self-declared by manufacturers who want to assert that their product complies with relevant European legal requirements.

However, “there is no such certification process by authorities associated with this mark”, said CCCS.

The competition watchdog flagged the lack of pre-purchase disclosure about product suitability for individuals with specific health or medical conditions.

The relevant information was only available in the product manuals contained inside the packaging. Based on Osim’s policy, refunds are also not allowed once consumers open the packaging.

As a result, consumers who only find out that they cannot use the product after opening the packaging “might not be able to obtain refunds”, said CCCS.

Lastly, it pointed out that Osim’s “usual” prices presented alongside promotional prices for several products “were not genuinely usual”.

This is because they were not prices offered to retail customers for a significant period prior to the relevant promotion. “This could mislead customers about the actual discount they would enjoy,” said CCCS.

Osim has since removed the “Stanford Medicine” logo from its promotional materials and the word “Certified” from the “Conformite Europeenne” mark on its products.

It also disclosed product suitability information on its website and instructed sales representatives to remind customers before their purchase.

Osim took steps to ensure that its promotions reflected actual discounts.

“As part of the undertaking given to CCCS, Osim also agreed to implement an internal compliance policy to ensure compliance with Singapore’s fair trading laws,” said the competition watchdog.

CCCS’ chief executive Alvin Koh said: “We encourage other businesses to review their practices to ensure that any representations they make are accurate, genuine, and include sufficient disclosure to reduce the risk of consumer disputes and enhance trust in the marketplace.”