When an $8 hair salon visit cost $1k: Chain admits to unfair trade practices targeting the elderly

New Paper

3 days ago

An elderly consumer visited a hair salon in Ang Mo Kio for an $8 haircut but ended up paying nearly $1,000 for a hair wash and a 10-session hair treatment package, both of which he had not agreed to purchase.
The incident took place at a hair salon operating under the HairFun brand, which has since promised to stop engaging in unfair trade practices and to refund affected consumers. Halfway through his haircut, the elderly customer was shown images on a monitor screen, which an employee claimed showed haemorrhaging on his scalp. However, no device had been used to scan the consumer's head.
Without the customer's consent, the employee washed his hair with a powder. The customer was later instructed to enter his personal identification number into the point-of-sale device, while the employee concealed the total payment amount.
The elderly customer later consulted a doctor, who confirmed that his head and scalp were normal and showed no signs of haemorrhaging. The Competition and Consumer Commission of Singapore, which disclosed the details of the case on June 4, did not state when the incident took place.
In its statement, it said it began investigations after receiving multiple consumer complaints concerning the sales tactics adopted by HairFun employees.
It then made unannounced visits to three branches of HairFun salon in October 2024 - Hairfun Beauty in Ang Mo Kio, Hairfun in Tampines, and Scissors & Comb in Toa Payoh Central.
The authority found that the first two outlets had targeted elderly consumers by offering free or low-cost haircuts between May 2023 and July 2024.
HairFun customers, particularly the elderly, were misled about their need for treatment packages, and were charged for expensive services and packages that they had not asked for, the investigations revealed.
The HairFun companies have since agreed to refund all affected consumers.
An example of the monitor and scalp scanner used by Hairfun Beauty in this photo taken on Oct 2, 2024. PHOTO: CCCS
As part of the undertaking given to CCCS, the HairFun companies and their directors Roland Teo Jian Hao and Chiong Hong Hioh also pledged to stop all unfair trade practices, cooperate with the Consumers Association of Singapore (Case) to resolve all complaints relating to unfair trade practices and provide a five-day cooling period for customers to cancel and get a refund for any pre-paid packages.
"Close to $12,500 were recovered and returned to the affected consumers, many of whom are elderly residents living in the neighbourhood of the hair salon," Case president Melvin Yong said in a Facebook post on June 4.
CCCS advised members of the public to not feel obliged to pay for goods or services that they did not ask for. It urged the public to learn more about the services and prices they will be paying before making payment.
The price list of services provided at Hairfun Beauty, which included a free haircut for those aged above 55 years old. PHOTO: CCCS
Its chief executive Alvin Koh also called on businesses to be more responsible when dealing with vulnerable consumers such as the elderly. "CCCS is concerned about elderly consumers being targeted and misled by errant businesses to pay for services that they did not agree to purchase. 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," he said.
He added that CCCS would step up efforts to educate and equip seniors with knowledge so as to better protect them.
Members of the public can call to report cases of unfair trade practices by businesses at 6277-5100, or visit the online portal at https://crdcomplaints.azurewebsites.net/.