SINGAPORE: Hair salons operating under the HairFun brand have admitted to engaging in unfair trade practices targeting elderly consumers, and have agreed to refund affected customers and stop such conduct, Singapore's consumer watchdog said on Wednesday (Jun 4).
The Competition and Consumer Commission of Singapore (CCCS) launched investigations after the Consumers Association of Singapore (CASE) received complaints about the sales tactics by HairFun employees.
After conducting unannounced visits at three HairFun outlets in October 2024, CCCS said that it found that Hairfun Beauty Pte Ltd and Hairfun Pte Ltd, between May 2023 and July 2024, had targeted elderly consumers by offering free or low-cost haircuts ranging from S$4 (US$3) to S$10.
CCCS also found through its investigations that the HairFun companies had misled elderly customers about the necessity of treatment packages and charged them expensive services and packages that they had not asked for.
In one instance, an elderly customer visited a HairFun outlet in Ang Mo Kio for an S$8 haircut. A HairFun employee then showed the customer images on a monitor, claiming the images showed "haemorrhaging on the elderly consumer’s scalp" despite no device having been used to scan the customer’s head.
Without the customer's consent, the employee proceeded to use a powder to wash the customer's hair.
When the customer wanted to make the payment, the employee hid the payment amount and told the customer to enter their PIN into the payment device.
The customer was charged nearly S$1,000 and told that he had a hair wash and a 10-session hair treatment package, both of which he had not consented to purchasing.
CCCS said the customer only discovered he had been misled after consulting a doctor who confirmed that his head and scalp were normal and showed no signs of haemorrhaging.
"As part of the undertaking given to CCCS, the HairFun companies and their directors, Mr Roland Teo Jian Hao and Mdm Chiong Hong Hioh, have admitted to engaging in unfair trade practices," said CCCS.
They have promised to "stop all unfair trade practices, cooperate with CASE to resolve all complaints relating to unfair trade practices and provide a five-day cooling period for customs to cancel and get a refund for any prepaid packages", CCCS added.
The hair salon chain has also agreed to refund all affected consumers and has, to date, completed almost all of the refunds. The refunded amount totalled approximately S$12,500.
"CCCS is concerned about elderly consumers being targeted and misled by errant businesses to pay for services that they did not agree to purchase," said the Singapore consumer watchdog's CEO, Mr Alvin Koh.
"In dealing with vulnerable consumers, which may include the elderly, businesses must exercise extra care and check that they fully understand and agree to what they are buying, including the price, before they complete the sale.
"In view of Singapore’s ageing population, CCCS will step up our community outreach to better educate and equip our seniors with knowledge so as to better protect them."
CCCS advises businesses to recommend and provide goods and services that genuinely meet consumers’ needs and should never resort to misleading consumers or using undue pressure sales tactics.
Customers should also not feel obliged to pay for goods or services that they did not ask for, CCCS added.
They should also make sure they understand both the services being provided and the price before making any payment.
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The Competition and Consumer Commission of Singapore (CCCS) launched investigations after the Consumers Association of Singapore (CASE) received complaints about the sales tactics by HairFun employees.
After conducting unannounced visits at three HairFun outlets in October 2024, CCCS said that it found that Hairfun Beauty Pte Ltd and Hairfun Pte Ltd, between May 2023 and July 2024, had targeted elderly consumers by offering free or low-cost haircuts ranging from S$4 (US$3) to S$10.
CCCS also found through its investigations that the HairFun companies had misled elderly customers about the necessity of treatment packages and charged them expensive services and packages that they had not asked for.
In one instance, an elderly customer visited a HairFun outlet in Ang Mo Kio for an S$8 haircut. A HairFun employee then showed the customer images on a monitor, claiming the images showed "haemorrhaging on the elderly consumer’s scalp" despite no device having been used to scan the customer’s head.
Without the customer's consent, the employee proceeded to use a powder to wash the customer's hair.
When the customer wanted to make the payment, the employee hid the payment amount and told the customer to enter their PIN into the payment device.
The customer was charged nearly S$1,000 and told that he had a hair wash and a 10-session hair treatment package, both of which he had not consented to purchasing.
CCCS said the customer only discovered he had been misled after consulting a doctor who confirmed that his head and scalp were normal and showed no signs of haemorrhaging.
"As part of the undertaking given to CCCS, the HairFun companies and their directors, Mr Roland Teo Jian Hao and Mdm Chiong Hong Hioh, have admitted to engaging in unfair trade practices," said CCCS.
They have promised to "stop all unfair trade practices, cooperate with CASE to resolve all complaints relating to unfair trade practices and provide a five-day cooling period for customs to cancel and get a refund for any prepaid packages", CCCS added.
The hair salon chain has also agreed to refund all affected consumers and has, to date, completed almost all of the refunds. The refunded amount totalled approximately S$12,500.
"CCCS is concerned about elderly consumers being targeted and misled by errant businesses to pay for services that they did not agree to purchase," said the Singapore consumer watchdog's CEO, Mr Alvin Koh.
"In dealing with vulnerable consumers, which may include the elderly, businesses must exercise extra care and check that they fully understand and agree to what they are buying, including the price, before they complete the sale.
"In view of Singapore’s ageing population, CCCS will step up our community outreach to better educate and equip our seniors with knowledge so as to better protect them."
CCCS advises businesses to recommend and provide goods and services that genuinely meet consumers’ needs and should never resort to misleading consumers or using undue pressure sales tactics.
Customers should also not feel obliged to pay for goods or services that they did not ask for, CCCS added.
They should also make sure they understand both the services being provided and the price before making any payment.
Continue reading...