In a significant development, the Competition and Consumer Commission of Singapore (CCCS) has revealed that companies operating under the “HairFun” brand have engaged in unfair trade practices, particularly targeting elderly consumers. This revelation comes after a series of investigations prompted by numerous complaints from consumers regarding the sales tactics employed by HairFun employees.
Investigation Findings
The CCCS initiated its investigation following a referral from the Consumers Association of Singapore (CASE), which had received multiple reports of questionable sales practices. Unannounced visits to three HairFun outlets in October 2024 uncovered alarming evidence of misconduct. Between May 2023 and July 2024, HairFun Beauty Pte. Ltd. and Hairfun Pte. Ltd. were found to have lured elderly customers with offers of free or low-cost haircuts, priced between S$4 and S$10.
However, the investigation revealed that these promotions were often a pretext for misleading consumers about the necessity of expensive treatment packages. In many cases, elderly customers were charged for services they had not requested or agreed to.
A Disturbing Example
One particularly troubling incident involved an elderly consumer who visited the Ang Mo Kio salon for an $8 haircut. During the service, an employee falsely claimed to show images of the consumer’s scalp indicating haemorrhaging, despite no actual examination being conducted. The employee then proceeded to wash the consumer’s hair without consent and concealed the payment amount while instructing the consumer to enter his Personal Identification Number into the point-of-sale device. The result was a shocking bill of nearly $1,000 for services that the consumer had not agreed to, including a hair wash and a ten-session treatment package. It was only after consulting a doctor that the consumer learned there were no issues with his scalp.
Company Response and Consumer Protection
In response to the findings, HairFun companies and their directors, Mr. Roland Teo Jian Hao and Mdm. Chiong Hong Hioh, have admitted to engaging in unfair trade practices. They have committed to ceasing these practices, cooperating with CASE to resolve complaints, and providing a five-day cooling-off period for customers to cancel and receive refunds for any prepaid packages. To date, the companies have refunded approximately S$12,500 to affected consumers.
CCCS emphasizes the importance of ethical business practices, urging companies to provide goods and services that genuinely meet consumer needs without resorting to misleading tactics. Consumers are encouraged to be vigilant and ensure they fully understand the services and associated costs before making any payments.
Conclusion
The CCCS has expressed deep concern over the targeting of vulnerable consumers, particularly the elderly, by unscrupulous businesses. As Singapore’s population ages, the need for increased consumer education and protection becomes paramount. CCCS plans to enhance community outreach efforts to equip seniors with the knowledge necessary to safeguard themselves against unfair trade practices.
Members of the public who suspect unfair trade practices are encouraged to report their experiences to CASE at 6277 5100 or through their online complaint portal.