Hair Salons Admit to Unfair Trade Practices Targeting Elderly

(View Media Release in PDF)

1. Companies operating hair salons under the “HairFun” brand^[1] and their directors have provided the Competition and Consumer Commission of Singapore (CCCS) with undertakings to stop engaging in certain unfair trade practices and refund affected consumers. Specifically, Hairfun Beauty Pte. Ltd. and Hairfun Pte. Ltd. were found to have targeted elderly consumers and, in some instances, charged them thousands of dollars.

2. Investigations by CCCS started after the matter was referred to them by the Consumers Association of Singapore (CASE) after they received multiple consumer complaints concerning the sales tactics adopted by HairFun employees.

3. CCCS conducted unannounced visits^[2] at the three HairFun outlets in October 2024. CCCS found that Hairfun Beauty Pte. Ltd. and Hairfun Pte. Ltd. had between May 2023 and July 2024, targeted elderly consumers by offering free or low-cost haircuts (ranging from $4 to $10).^[3] Through its investigations, CCCS found that HairFun companies had misled consumers, particularly the elderly, about the necessity of treatment packages and also charged them for expensive services and packages that they had not asked for.

4. For example, on one occasion, an elderly consumer visited the Ang Mo Kio salon for a $8 haircut. Midway through the haircut, an employee showed the elderly consumer images on a monitor screen and claimed that the images showed haemorrhaging on the elderly consumer’s scalp (although no device had been used to scan the consumer’s head). Without the elderly consumer’s agreement, the employee used a powder to wash the elderly consumer’s hair. When it came time to make payment, the employee concealed the payment amount while he instructed the elderly consumer to enter his Personal Identification Number into the point-of-sale device. The elderly consumer was subsequently charged nearly $1,000, and was informed that he had paid for a hair wash and a ten-session hair treatment package, both of which he had not consented to purchasing. The elderly consumer only discovered that he had been misled after consulting a doctor, who confirmed that his head and scalp were normal and showed no signs of haemorrhaging.  

5. 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, and have undertaken to:

   • (a) Stop all unfair trade practices;

   • (b) Cooperate with CASE to resolve all complaints relating to unfair trade practices; and

   • (c) Provide a five-day cooling period for customers to cancel and get a refund for any prepaid packages.

6. In addition, the HairFun companies have agreed to refund all affected consumers and have, to date, completed almost all of the refunds. The refunded amount totalled approximately $12,500.

7. CCCS advises that businesses should recommend and provide goods and services that genuinely meet consumers’ needs and should never resort to misleading consumers or using undue pressure sales tactics. On their part, consumers should not feel obliged to pay for goods or services that they did not ask for and should, in fact, satisfy themselves about the services and the price they will be paying for such services before making payment.

8. "CCCS is concerned about elderly consumers being targeted and misled by errant businesses to pay for services that they did not agree to purchase. 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 aging population, CCCS will step up our community outreach to better educate and equip our seniors with knowledge so as to better protect them.” said CCCS’s Chief Executive, Mr Alvin Koh.  

9. Members of the public who would like to report cases of unfair trade practices by errant businesses may contact CASE at 6277 5100 (Mondays to Fridays, 9am to 5pm) or https://crdcomplaints.azurewebsites.net/.

 -End-

Annex A – Shopfront Price List Poster (HairFun - Ang Mo Kio Outlet)

Annex B - Monitors in VIP Rooms showing hair scalp conditions (HairFun - Tampines and Toa Payoh Outlets

About the Competition and Consumer Commission of Singapore (CCCS)

The Competition and Consumer Commission of Singapore (“CCCS”) is a statutory board of the Ministry of Trade and Industry. CCCS administers and enforces the Consumer Protection (Fair Trading) Act 2003 or (“CPFTA”) which protects consumers against unfair trade practices in Singapore. CCCS is also the administering agency for the Competition Act 2004 which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop or prevent anti-competitive activities and impose financial penalties. Our mission is to make markets work well to create opportunities and choices for businesses and consumers in Singapore.

For more information, please visit www.cccs.gov.sg.

^[1] These refer to three companies, Hairfun Beauty Pte. Ltd., Hairfun Pte. Ltd., and Scissor & Comb Pte. Ltd. that operates hair salons at Ang Mo Kio Avenue 10, Tampines Central and Toa Payoh Central respectively, using this brand name.

^[2] https://www.cccs.gov.sg/media-and-events/newsroom/announcements-and-media-releases/cccs-commences-investigations-with-unannounced-visits-to-hairfun-salons-for-suspected-unfair-trade-practices

^[3] See Annex A for a photo of the storefront poster put up at the salon operated by Hairfun Beauty Pte. Ltd. at Ang Mo Kio promoting free haircuts for the elderly.