Singapore's consumer watchdog investigating hair salon chain suspected of 'targeting' elderly customers
HairFun is under probe for suspected unfair trade practices, with CASE also having received complaints from consumers about being billed for unwanted treatments or packages without their clear consent.
by Daphne Yow · CNA · JoinSINGAPORE: A hair salon chain is being investigated by the Competition and Consumer Commission of Singapore (CCCS) for suspected unfair trade practices, following a number of complaints lodged over their sales tactics.
Singapore's consumer watchdog made unannounced visits to HairFun's three outlets at Ang Mo Kio Avenue 10, Toa Payoh and Tampines Central on Wednesday (Oct 2) afternoon, the CCCS and the Consumers Association of Singapore (CASE) jointly said.
CASE said it had received complaints about the sales tactics practiced at the three salons. These include the "targeting and exploitation" of elderly customers and the concealing of payment amounts during NETS transactions.
It also received complaints from consumers that they had been billed for unwanted treatments or packages without their clear consent and had been charged "significantly higher" prices without prior agreement.
HairFun's outlet in Ang Mo Kio made the news in November last year, after Chinese newspaper Shin Min Daily reported an 85-year-old man was "persuaded" to sign up for hair treatment service costing S$99 (US$77), when his intention was just to get a S$8 haircut.
CASE said that attempts to resolve the issues with the chain's management were unsuccessful, and it continued to receive complaints over the chain between September 2023 and January this year.
It added in a Facebook post that it had received 34 complaints against the chain and its sales tactics from Dec 1, 2022 to Apr 22, 2024.
The consumer watchdog warned HairFun's operator against such unfair trade practices and invited them to sign a voluntary compliance agreement to cease doing so and to refund affected customers.
However, CASE did not get a response from the chain's management, and thus referred the matter to the CCCS for investigations.
PREVIOUSLY KNOWN AS SCISSOR & COMB
CCCS' investigations found that the three salons had previously operated under the business name Scissor & Comb.
CASE had received similar complaints against Scissor & Comb from 2018 to 2022, with consumers allegedly billed for unwanted treatments or packages without their explicit consent.
On Wednesday afternoon, CCCS, acting under the Consumer Protection (Fair Trading) Act, obtained information and documents at the salons. It also issued a notice to the director of HairFun's operator to produce information and documents.
"CCCS will continue with its investigations and consider the evidence gathered to determine whether to take enforcement action against the respective HairFun salons," it said.
"If CCCS finds that any of the HairFun salons have engaged, or are engaging, in unfair trade practices, it may seek court orders against them to, amongst other things, stop the unfair trade practices."
CASE president Melvin Yong added: "Business owners and company directors cannot be allowed to perpetuate unfair trade practices by changing business names.
"CASE will continue to identify such cases and will work closely with CCCS to take enforcement action against these errant retailers."
The HairFun salons have been placed on CASE's company alert list, which is a list of companies against which it has received consumer complaints.
Consumers are advised to check the list before entering into any transactions, said CCCS and CASE.
Members of the public who want to report cases of unfair trade practices by the HairFun salons or Scissor & Comb salons can also contact CASE.
In response to a parliamentary question by Member of Parliament (MP) Liang Eng Hwa, who had asked about a previous CCCS warning on unfair practices among hair salons, Minister for Trade and Industry Gan Kim Yong said in a written reply on May 7 that the consumer watchdog "investigates all claims of unfair practices and does not hesitate to take firm enforcement action when necessary".
This includes seeking court injunctions to restrain errant businesses from engaging in unfair practices, he added.
Mr Gan noted that since the media release was issued in November 2023, CASE had received fewer complaints concerning hair salons.
"Between December 2023 and April 2024, CASE received 128 such complaints, compared to 154 in the prior five-month period," he added.
"The government will continue to work closely with CASE to monitor industry practices. We will also study whether more deterrent measures are needed to deal with egregious conduct."
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