Latest news with #unfairtrade
Malay Mail
6 days ago
- Business
- Malay Mail
HairFun admits to unfair trade practices in Singapore; elderly customers pressured into expensive treatments
SINGAPORE, June 4 — Hair salon chain HairFun has admitted to using unfair trade practices targeting elderly customers and has agreed to cease such conduct, refund affected individuals, and implement consumer protection measures, authorities said. The Competition and Consumer Commission of Singapore (CCCS) launched investigations into HairFun following complaints received by the Consumers Association of Singapore (CASE) about aggressive and misleading sales tactics, according to a report published in Channel News Asia today. Unannounced visits to three HairFun outlets in October 2024 revealed that from May 2023 to July 2024, the salons lured elderly customers with offers of low-cost haircuts, then pressured them into paying for expensive treatment packages they did not request. In one case, an elderly man visited the Ang Mo Kio outlet for an S$8 (RM26) haircut but was falsely told he had scalp haemorrhaging. He was then charged nearly S$1,000 for a hair wash and 10-session treatment package he had not consented to. The customer only discovered the deception after a doctor confirmed there was nothing wrong with his scalp. CCCS also found that the same salons previously operated under the name Scissor & Comb, against which similar complaints were lodged between 2018 and 2022. HairFun Beauty Pte Ltd, HairFun Pte Ltd, and their directors, Roland Teo Jian Hao and Chiong Hong Hioh, have admitted to the unfair practices and committed to ceasing such actions. They also agreed to a five-day cooling-off period for package purchases and have cooperated with CASE to refund nearly all affected consumers, amounting to about S$12,500. CCCS chief executive Mr Alvin Koh stressed the importance of protecting elderly consumers and urged businesses to ensure clarity and consent in all transactions. CASE president Melvin Yong welcomed the outcome and said the organisation will continue working with CCCS to hold unethical businesses accountable.
CNA
6 days ago
- Business
- CNA
Salon chain HairFun admits to unfair practices targeting elderly customers
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.
CNA
19-05-2025
- Business
- CNA
Nail Palace director fails to get jail term replaced with fine after breaching consumer protection orders
SINGAPORE: The director of a nail salon chain that did not take court-ordered steps to protect consumers will serve three months in jail for contempt of court after his appeal to the High Court fell through on Monday (May 19). Mr Kaiden Cheng, the managing director of two outlets under Nail Palace, had attempted to have his four-month jail term replaced with a S$10,000 (US$7,700) fine or reduced to five days' imprisonment. He argued that his businesses had since complied with court orders by publishing notices in four major newspapers to inform the public of their unfair trade practices, and implementing a new consumer notification form in January. However, Justice Audrey Lim found that a jail term was warranted as Nail Palace's breach of the court orders had substantial and irremediable effects. As a result, many existing and new customers who bought services from the salons would have been deprived of the knowledge that they had engaged in unfair trade practices, she said. Justice Lim further found that Nail Palace's breaches were ongoing, because its new consumer notification form and processes did not satisfy the court order. In February and March, two Competition and Consumer Commission of Singapore (CCCS) officers made four undercover visits to the two salons in Bukit Panjang and Simei to conduct spot checks. They reported that they did not sign the consumer notification form until after the salons had started providing manicure or pedicure services to them. At that point, services such as feet-washing, nail clipping and buffing, and application of basecoats to their nails had already been performed. The claim that these were preparatory acts and common practice among nail salons as a prelude to the actual services was unbelievable, said Justice Lim. Nail Palace's non-compliance with the consumer notification order was therefore "continuing, egregious and persistent". She also noted that Nail Palace had a history of disregarding court orders, and that the salons' conduct showed they were not serious about making sure they were not in contempt of court. There was public interest in ensuring prompt compliance with such court orders and bringing unfair business practices to the attention of consumers at large, said Justice Lim. She reduced Mr Cheng's jail term by a quarter after taking into account that Nail Palace's January notices in the newspapers did comply with the court order, although they came more than 17 months after the initial deadline. The two Nail Palace businesses were also ordered to pay costs and disbursements to CCCS. As Mr Cheng's jail term was read out by the judge, a cry arose from the public gallery where he was seated with supporters. His sentence was deferred to May 26 to allow him to attend his sister's wedding. Nail Palace (BPP) and Nail Palace (SM) were originally taken to task for unfair trade practices over the sale of anti-fungal treatment packages. This included misleading a consumer over the need for anti-fungal treatment, and failing to inform a consumer that certain lip products were not free but included in the price of an anti-fungal treatment package. In August and September 2022, CCCS obtained injunctions to stop both businesses from these unfair practices. A district court ordered both businesses to publish a notice of the declarations and injunctions against them in four major Singapore newspapers by Aug 18, 2023. For a period of two years, the businesses were also supposed to inform customers that they had engaged in the unfair practices and obtain customers' written acknowledgement of this before entering into contracts with them. However, the businesses failed to comply with these requirements. In a first, CCCS took them to court for breach of the orders, and they were found guilty of contempt of court in September 2024.
