Finance

Investigation Unfolds Over Hair Salon Chain’s Alleged Exploitation of the Elderly in Singapore

2024-10-02

Author: Li

Overview

SINGAPORE – In a shocking turn of events, the Competition and Consumer Commission of Singapore (CCCS) is currently probing a prominent hair salon chain, HairFun, over claims of unfair trading practices, mainly targeting and exploiting elderly customers. The inquiry comes in the wake of numerous complaints regarding their dubious sales strategies.

Surprise Inspections Conducted

On October 2, CCCS agents made surprise inspections at three HairFun locations in Ang Mo Kio, Toa Payoh, and Tampines Central. The inspections were part of a joint effort with the Consumers Association of Singapore (CASE), which has received alarming reports from customers about the salon's sales tactics.

Allegations of Exploitation

Consumers have alleged that elderly customers were specifically targeted and led to make purchases without their explicit consent. Troubling details have emerged that suggest some clients were billed for unwanted treatments or overpriced packages that were not agreed upon before the transaction. One particularly disturbing case involved an 85-year-old man who only intended to pay S$8 for a basic haircut but ended up being convinced to sign up for a S$99 hair treatment instead.

CCAS Reports

CASE revealed that from December 1, 2022 to April 22, 2024, they received 34 complaints related to HairFun's questionable practices. Despite attempts to address these issues with the company's management, no resolution was achieved, prompting CASE to escalate the matter to the CCCS for thorough investigation.

Past Allegations

Adding an interesting twist, CCCS noted that HairFun had operated under the name Scissor & Comb in the past. This chain also faced similar allegations between 2018 and 2022, where consumers reported being charged for services they explicitly did not request.

Legal Scrutiny

The CCCS is now scrutinizing the salons for violations under the Consumer Protection (Fair Trading) Act and is gathering substantial evidence to determine if enforcement actions are warranted. According to their statement, if it is found that HairFun salons have engaged in unfair trade practices, legal action may ensue to halt such operations and potentially provide restitution to affected customers.

Public Response

In response to growing concerns, CASE President Melvin Yong stressed the importance of accountability, declaring that business directors cannot evade repercussions simply by rebranding. He assured the public that CASE will continue to collaborate closely with the CCCS to root out exploitative practices in the retail space.

Consumer Caution Advised

For consumers considering visits to HairFun, caution is advised as the salon chain is now on CASE’s alert list—a compilation of companies that have drawn complaints. The organization is encouraging anyone who has experiences related to unfair practices with HairFun or its previous incarnation, Scissor & Comb, to come forward and report their cases.

Government Assurance

Minister for Trade and Industry Gan Kim Yong addressed the situation in Parliament, assuring that the consumer watchdog is unwavering in investigating all claims of unfair practices. Since a public warning was issued in November 2023, there has been a slight decrease in complaints against hair salons, indicating that public awareness may be prompting change within the industry.

Conclusion

As investigations continue, the spotlight remains firmly on HairFun, questioning what other surprises may lie in store for unsuspecting customers. If you or anyone you know has faced similar issues, it’s vital to speak up—your voice could help protect others from falling victim to unfair practices.