CCCS Commences Investigations with Unannounced Visits to HairFun Salons for Suspected Unfair Trade Practices

2 October 2024

(View Media Release in PDF)

1. The Competition and Consumer Commission of Singapore (“CCCS”) has commenced investigations with unannounced visits at three “HairFun” salons^[1] operating in Ang Mo Kio Avenue 10, Toa Payoh Central and Tampines Central (collectively, the “HairFun Salons”) for suspected unfair trade practices.

 

2. The unannounced visits were conducted earlier this afternoon.

 

Background

 

3. The Consumers Association of Singapore (“CASE”) had received a number of complaints concerning the sales tactics at the above-mentioned HairFun Salons. These complaints include practices such as the targeting and exploitation of elderly consumers, concealing payment amounts during NETS transactions, charging significantly higher prices without prior agreement, and billing consumers for unwanted treatments or packages without their clear consent. Attempts by CASE to resolve the issues with the management of HairFun Salons were unsuccessful. As CASE continued to receive complaints against the various HairFun Salons between September 2023 and January 2024, CASE warned the operator of the HairFun Salons against such practices and invited them to sign a Voluntary Compliance Agreement (“VCA”) to cease any unfair trade practices and refund affected consumers. When the management of the HairFun Salons failed to respond, the matter was referred to the CCCS for investigations.

CCCS’s Investigation

4. Investigations by CCCS have revealed that the HairFun Salons had previously operated under the “Scissor & Comb” business name and there were previous complaints received by CASE from 2018 to 2022 pertaining to billing consumers for unwanted treatments or packages without their explicit consent. In the course of its unannounced visits, CCCS exercised powers under the Consumer Protection (Fair Trading) Act 2003 and obtained information and documents at the respective HairFun Salons. The director of the operator of HairFun Salons was also issued a CCCS notice to produce information and documents.

 

5. CCCS will continue with its investigations and consider the evidence gathered to determine whether to take enforcement action against the respective HairFun Salons. If CCCS finds that any of the HairFun Salons have engaged, or are engaging, in unfair trade practices, it may seek court orders against them to, amongst other things, stop the unfair trade practices.

Advice to Consumers

6. The HairFun Salons have been placed on CASE’s Company Alert List, a non-exhaustive list of companies against which CASE has received consumer complaints. CCCS and CASE urge consumers to check the list before entering into consumer transactions with them.

 

7. Members of the public who would like to report cases of unfair trade practices by the HairFun Salons or “Scissor & Comb” Salons may contact CASE, which is the first point-of-contact for consumers (Hotline: 6277 5100 (Mondays to Fridays, 9am to 5pm), Online submission: https://crdcomplaints.azurewebsites.net/).

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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 Competition Act 2004 which empowers CCCS to investigate and adjudicate anti-competitive activities, issue directions to stop and/or prevent anti-competitive activities and impose financial penalties. CCCS is also the administering agency of the Consumer Protection (Fair Trading) Act 2003 which protects consumers against unfair trade practices in Singapore. 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.

About the Consumers Association of Singapore (CASE)

The Consumers Association of Singapore (“CASE”) is an independent, non-profit organisation that is committed to protecting consumers’ interest through information and education and promoting an environment of fair and ethical trade practices. One of its key achievements is in advocating for the Consumer Protection (Fair Trading) Act (“CPFTA”) which came into effect on 1 March 2004.

For more information, please visit  www.case.org.sg.

^[1] The Hairfun Salons are operated by Hairfun Beauty Pte Ltd, Hairfun Pte Ltd, and Scissor & Comb Pte Ltd.

Annex - Photos of HairFun Salons

Blk 410 Ang Mo Kio Ave 10 #01-829 S(560410)

Blk 190 Toa Payoh Lor 6 #01-560 S(310190) 

Blk 505 Tampines Central #01-359 S(520505)