OSIM pledges more transparency with product information after consumer watchdog raises concerns

CNA
13 Feb

SINGAPORE: Wellness technology company OSIM has pledged to improve transparency in its product information following concerns raised by the Competition and Consumer Commission of Singapore (CCCS).

The consumer protection watchdog said on Thursday (Feb 13) that it had flagged concerns about some of OSIM’s business practices, including product endorsement, product standards, suitability for specific consumers and pricing.

In one instance, OSIM used a Stanford Medicine logo in promotional materials for its uLove3 Well-Being Chair, which could mislead consumers into thinking that the chair was endorsed by Stanford Medicine and its institutions, such as the Stanford University School of Medicine.

In fact, the technology used in the chair was endorsed only by a medical consultant who had lectured at the Stanford University School of Medicine, said CCCS.

OSIM’s uDream Pro Well-Being Chair and the aforementioned uLove3 chair were also touted on the company's website as “CE Certified”, where “CE” is generally understood to refer to "Conformite Europeenne".

However, the CE mark is a self-declared mark by manufacturers who assert that their product conforms with relevant European legal requirements. There are no certification processes by authorities associated with the mark.

By including the word “certified”, OSIM consumers could be misled into thinking that the chairs were certified by an authority, the watchdog said. 

CCCS also found a lack of pre-purchase disclosure about product suitability for OSIM consumers with certain medical conditions.

For example, CCCS highlighted a warning in the product manual for OSIM's uPulse massage mat which stated that consumers should not use the product if they are fitted with a pacemaker, are pregnant or suffer from high blood pressure, among other conditions. 

The watchdog noted that as such information is only in product manuals contained inside the packaging, this meant that affected consumers might not be able to obtain refunds as OSIM has a policy to preclude them once the packaging has been opened, even though the consumers found out the product was unsuitable only after they made their purchase.

OSIM was also found to have presented false “usual” prices alongside promotional prices for some products.

From Jan 1, 2022, to May 14, 2023, none of the “usual prices” presented for several OSIM products were actually offered to consumers over the same period, misleading them about the actual discount they would receive, CCCS said.

It added that OSIM has addressed the concerns raised by removing the Stanford Medicine logo from its promotional materials and removing the word “Certified” from the "CE" mark on its products.

To provide greater transparency on product suitability, OSIM added a “Product Usage Suitability” notice across all product listings on its website and e-commerce channels.

At its physical stores, OSIM also included a disclaimer in its product price cards to refer consumers to its website for product usage suitability information, while reminding them about such information at the point of purchase.

OSIM also agreed to implement an internal policy to ensure compliance with Singapore’s fair trading laws, and ensure that its promotions reflected actual discounts.

“CCCS combines rigorous enforcement with collaborative industry engagement to improve fair trading business practices. In this case, we acknowledge OSIM’s active response to address the concerns raised by CCCS and its commitment to improve its business practices,” said CCCS chief executive Alvin Koh.

“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.”

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