The Competition and Consumer Commission of Singapore (CCCS) is investigating a hair salon chain, HairFun, following numerous complaints regarding their sales practices. The complaints accuse the salon chain of targeting vulnerable elderly customers and employing aggressive sales tactics that have resulted in overcharging and unauthorized billing.
The investigation began after a series of complaints were filed with the Consumers Association of Singapore (CASE), which subsequently led to unannounced inspections by both CASE and CCCS at three of HairFun’s outlets. These inspections, carried out on 2 October 2024, were conducted at the salons located in Ang Mo Kio Avenue 10, Toa Payoh, and Tampines Central. Customers had reported various issues, including being billed for treatments they did not want, as well as being charged significantly higher prices than originally agreed upon.
According to CASE, one of the primary concerns was the alleged targeting and exploitation of elderly customers. In one particularly troubling case, reported by Shin Min Daily, an 85-year-old man was persuaded to sign up for a hair treatment package costing 99 Singapore dollars (about 77 U.S. dollars). His initial intent had been to receive a simple 8 dollar haircut. Such incidents have raised serious concerns about the tactics used by the salons to upsell services to elderly and potentially vulnerable individuals.
Between December 2022 and April 2024, CASE received 34 separate complaints about the salon’s sales tactics. Many consumers claimed they were charged for unwanted packages or treatments without their explicit consent. The complaints also highlighted instances where the salon’s staff allegedly concealed the actual costs of services during NETS transactions, leaving customers unaware of the full amounts they were being billed.
Despite CASE’s attempts to address the issue directly with HairFun’s management, no satisfactory resolution was reached. After several unsuccessful attempts to engage with the chain’s management, CASE escalated the matter by referring it to CCCS for a more in-depth investigation. In response, CCCS conducted unannounced inspections at three salons, gathering information and documents related to the allegations. Furthermore, a notice was issued to the directors of the company behind HairFun, requesting them to produce additional information to assist with the investigation.
The investigation by CCCS is being conducted under the Consumer Protection (Fair Trading) Act, which seeks to safeguard consumers from unfair business practices. The CCCS has stated that if any of HairFun’s salons are found to be engaging in unfair trade practices, it may pursue legal action, including seeking court orders to stop these practices and potentially impose penalties on the company.
CCCS has emphasized that businesses cannot escape liability by simply changing their name. HairFun, it turns out, was previously known as Scissor & Comb, a name under which the salon chain also faced complaints about similar practices. The complaints against Scissor & Comb date back as far as 2018. These earlier allegations also centered around unauthorized billing for services and treatments.
As part of the ongoing investigation, HairFun has been added to CASE’s company alert list, which tracks businesses that have received consumer complaints. This list serves as a warning to consumers, urging them to exercise caution before engaging with the companies listed. The public is also encouraged to report any instances of unfair trade practices to CASE, particularly those related to HairFun or its predecessor, Scissor & Comb.
