Advanced Hair Studio Pty Ltd - s.87B undertaking

The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from Advanced Hair Studio Pty Ltd (Advanced Hair) over concerns it entered into contracts that included unfair contract terms.

Advanced Hair provides hair loss treatments and procedures including its Advanced Laser Therapy Program (laser program). 

Advanced Hair entered into laser program contracts with consumers which:

• between April 2015 and February 2017, included a termination clause that required consumers to pay 100% of the contract price to terminate after commencing laser therapy sessions, and

• between February 2017 and June 2017, included a termination clause that required consumers to pay 20% of the contract plus $150 per laser session unattended to terminate after commencing laser therapy sessions.

The ACCC considers that the termination clauses are likely to be unfair contract terms within the meaning of sections 23 and 24 of the Australian Consumer Law and therefore void.

Advanced Hair has acknowledged the ACCC’s concerns and has amended the termination clauses of concern. Advanced Hair has provided the ACCC with a section 87B undertaking that it will:

• maintain its revised termination clause for a period of three years
• conduct an audit to identify customers who entered into a laser program between April 2015 and June 2017 and who contacted Advanced Hair about terminating after they had commenced laser therapy sessions
• provide identified customers a cash refund of 80% of the contract price less $150 for each laser therapy session that the customer attended up to and including the date they contacted Advanced Hair
• publish a notice on its website (and at point of sale) for 60 days to notify customers about their eligibility for the refund, and
• establish an Australian Consumer Law Compliance Program.