DIRECT SELLING ASSOCIATION OF SINGAPORE (DSAS)

STATEMENT

NEW PAPER ARTICLE DATED 28 APRIL 2014 TITLED “HARD SELL ON HEALTH PROBLEMS AT HEART
HOSPITAL (“ARTICLE” AND “MATTER” RESPECTIVELY)

We refer to the article published in the New Paper.

The Association takes a very serious view of the matter. The Association maintains and strictly
enforces a comprehensive Code of Ethics (Code) whereby members recognise their responsibilities
to consumers and compliance with the relevant provisions of law. The Code prescribes against
certain practices including “hard selling”, and clearly states that members’ distributors shall not take
advantage of consumers. The Code applies to all members of the Association.

In the present instance, the Association immediately, upon learning of the matter, contacted the
member (Herbalife) to express its serious concerns. The Association immediately contacted its
strategic partner, the Consumer Association of Singapore (CASE) to advise that it had contacted
Herbalife to express the Association’s views in the strongest terms possible on this regrettable
matter. The Association summoned Herbalife’s representative to respond and provide a detailed
explanation in the matter. The Association expressed its displeasure in the matter, given the good
image of DSAS.

The Association has since received confirmation in writing from Herbalife that they have taken the
following actions:

  1. Identified and suspended the distributors concerned pending further investigations;
  2. Scheduled various meetings with their leaders to remind them of the need for training
  3. Sent out notifications in writing to their distributors on the importance of rules and their
    implementation.
  4. Written to the National Heart Centre to inform them that consumers may rely on the 30
    days unconditional refund guarantee offered by Herbalife
  5. Assured the Association of its commitment to ethics being taken seriously, and upholding
    industry integrity.

On its part, the Association will duly and accordingly, consider Herbalife’s actions in the matter.

The Association is confident that the present instance is not reflective of the Association or its
members. We maintain and uphold ourselves in high standards in accordance with the Code.

The Association is grateful this matter was raised to our attention.

Thank you.