OSIM promises transparency after consumer watchdog points out messaging flaws

Wellness technology company OSIM has promised to improve transparency in its product information following concerns raised by the Competition and Consumer Commission of Singapore (CCCS) where it outlined  concerns about some of OSIM’s business practices, including product endorsement, product standards, suitability for specific consumers, and pricing.

According to CCCS, OSIM used a "Stanford Medicine" logo in promotional materials for its “uLove3 well-being chair", which could mislead consumers into thinking that the product was endorsed by initiations that were associated with the logo, such as the Stanford University School of Medicine. In fact, the technology used in OSIM's product was endorsed only by a medical consultant who had lectured at the university. 

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In another instance, CCCS said the company's "uDream pro well-being chair" and "uLove3 well-being chair" were indicated on the company's website as "CE certified", where "CE" is generally understood to refer to "Conformite Europeenne". 

However, the "CE" is a self-declared mark by manufacturers who assert that their product conforms with relevant European legal requirements. There is no certification processes by authorities associated with this mark. Hence, OSIM could potentially mislead consumers into thinking the products were certified by an authority. 

In addition, CCCS found that OSIM had a lack of pre-purchase disclosure about product suitability for consumers with specific health of medical conditions. For example, a warning in OSIM's "uPulse massage mat" product manual stated that consumers should not use the mat if they are fitted with a pacemaker, are pregnant or suffer from high blood pressure or heart diseases. 

CCCS noted that such information was only available in the product manuals contained inside the packaging. Coupled with OSIM's policy to preclude refunds once the packaging was opened, it meant consumers who were affected might not be able to obtain refunds, even though they only found out about the unsuitability of the product after they had made their purchase

The final concerned raised by CCCS was that OSIM’s "usual" prices, presented alongside promotional prices for several products were not genuinely "usual" as they were not prices offered to retail customers for a significant period prior to the relevant promotion, which could mislead consumers about the actual discount they would enjoy. For example, CCCS found that none of the “usual prices” presented for several of OSIM’s products from 1 January 2022 to 14 May 2023 were actually offered to consumers over the same period. 

CCCS stated that OSIM has since taken steps to address the raised concerns, such as removing the "Standford Medicine" logo from its promotional materials and removing the word "certified" from the "CE" mark on its products. 

OSIM also provided greater disclosure of product suitability information on its website and instructed its sales representatives to remind customers about product suitability before purchase and ensured that promotions reflected actual discounts, CCCS said. 

As part of the undertaking given to the watchdog, OSIM has also agreed to implement an internal compliance policy to ensure compliance with Singapore’s fair-trading laws.

Alvin Koh, chief executive for CCCS said, “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."

"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," he added. 

MARKETING-INTERACTIVE has reached out to OSIM for more information. 

OSIM has not been the only company in recent times to be brought up on misrepresentations. In January this year, Vietnamese budget airline VietJet was instructed to remove a promotional campaign in Singapore after the nation's advertising watchdog found the company had made unsubstantiated environmental claims. According to Sustainability Magazine, VietJet's "Green Friday" promotion was marketed towards travelers as an eco-friendlier alternative, offering air tickets for as low as S$87 (US$64).

In conversations with MARKETING-INTERACTIVE, Bryan Tan, chairman of the Advertising Standards Authority of Singapore (ASAS) said the ASAS received feedback in November last year regarding VietJet's "Green Friday" campaign, communicated through their media release, advertisements on their website and social media channels.

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