Elderly man who wanted S$8 haircut at AMK salon charged nearly S$1,000 after staff falsely claimed his scalp haemorrhaging

A chain of hair salons operating under the HairFun brand and their directors admitted to engaging in unfair trade practices.

Specifically, Hairfun Beauty Private Limited and Hairfun Private Limited were found to have targeted elderly consumers, charging them thousands of dollars for services and packages they did not ask for.

According to the Competition and Consumer Commission Singapore (CCCS), investigations into the hair salon chain began after the Consumer Association of Singapore (CASE) referred the matter to them.

CASE had received multiple consumer complaints concerning the sales tactics adopted by HairFun employees.

Offer haircuts

In October 2024, CCCS made unannounced visits to three HairFun outlets, one at Ang Mo Kio Avenue 10, Toa Payoh Lorong 6 and Tampines Central.

They discovered that between May 2023 and July 2024, Hairfun Beauty Pte Ltd and Hairfun Pte Ltd targeted elderly consumers by offering free or low-cost (S$4 to S$10).

HairFun would then mislead its customers, particularly the elderly, about the necessity of treatment packages and charge them for expensive services and packages they did not ask for.

In one incident, an elderly customer visited the Ang Mo Kio outlet for an S$8 haircut.

Halfway through the haircut, one employee showed the customer images on a monitor screen and claimed that the photos showed haemorrhaging on the elderly customer's scalp.

However, no device had been used to scan the customer's head.

The employee then used a powder to wash the elderly consumer's hair without the customer's consent.

At the time of payment, the employee hid the payment amount while instructing the customer to key in his Personal Identification Number into the point-of-sale device.

He was then charged nearly S$1,000 and was told he had paid for a hair wash and a ten-session hair treatment package, which he did not agree to purchasing.

The customer only discovered he was misled when he consulted a doctor, who confirmed that there was no sign of haemorrhaging on his head and scalp.

Refund all customers

The HairFun companies and their directors, Ronald Teo and Chiong Hong Hioh, had admitted to engaging in unfair trade practices, said CCCS.

They have also stopped all unfair practices, cooperated with CASE to resolve all complaints and provided a five-day cooling period for customers to cancel and get a refund for any prepaid packages.

In addition, HairFun agreed to refund all affected consumers and has completed all of the refunds to date.

The total amount refunded is about S$12,500.

CASE president, Melvin Yong, said CASE referred HairFun for enforcement action after receiving numerous complaints from elderly consumers who had been misled and overcharged.

Yong also thanked CASE officers who worked with CCCS and supported affected customers through the refund process.

"CASE will continue working closely with Competition and Consumer Commission of Singapore to hold errant businesses accountable."

CCCS advised that businesses should recommend and provide goods and services that genuinely meet consumers' needs.

They should never resort to misleading consumers or using undue pressure sales tactics.

CCCS advised consumers not to feel obliged to pay for goods or services they did not request for.

"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 CCCS's Chief Executive, Alvin Koh.

"In dealing with vulnerable consumers, which may include the elderly, businesses must exercise care and check that they fully understand and agree to what they are buying, including the price, before they complete the sale."

Top photo via CCCS