The consumer watchdog has kicked off court proceedings against hair loss clinic Ashley & Martin over alleged unfair business practices.

November 29, 2017

The consumer watchdog has been pulling its hair out over the alleged unfair business practices at a chain of Australian clinics offering baldness treatments.  

The Australian Competition and Consumer Commission has initiated Federal Court proceedings against Ashley & Martin, alleging clauses in the clinic’s contracts were unfair under consumer law and therefore void.

It wants the Federal Court to find Ashley & Martin’s contractual terms unfair and void, and for customers to be compensated.

The watchdog on Wednesday said customers were given only two days to consider advice given at a consultation and to potentially opt out.

Commissioner Sarah Court said the ACCC is concerned two days is not long enough for people, who are often vulnerable, to consider medical advice about expensive and lengthy treatments.

“It is vital that these contracts allow a fair opportunity for people to fully consider the treatment program and medical advice, particularly where there is a risk of side effects,” Ms Court said in a statement.

The ACCC has alleged that, from November, 2013, until at least July this year, the clinic used three standard contracts containing unfair clauses to sign customers to the clinic’s “Personal RealGROWTH Program”.

Ashley & Martin – which operates 22 clinics in Australia, New Zealand and Singapore – still offers the program, describing the procedure as a unique treatment that stimulates dormant follicles and regenerates hair. 

Its website advises potential clients “you do need to act fast to increase your chances of success”.

The cost of the “Personal RealGROWTH Program” ranges between $2,400 to $4,000 depending on the length and treatment required. 

Ashley & Martin said it provides a money back guarantee if, after eight to 12 months, the treatment is not successful.

In a statement the company said it has listened to the ACCC’s concerns and although it did not agree with them, patients’ contract terms had been updated in July to include a seven-day opt out period.

Ashley & Martin said it had contacted all customers who had requested cancellation of “Personal RealGROWTH” programs since June, 2014, and offered refunds if the opt out clause was in their contract.