Losing hair over excessive cancellation fees

Losing hair over excessive cancellation fees

A hair loss treatment studio has agreed to partly refund some customers following ACCC concerns that their contract contained unfair terms, namely being excessive cancellation fees.

Advanced Hair Studio Pty Ltd (Advanced Hair Studio) offered an Advanced Laser Therapy Program between April 2015 and June 2017.  One of the cancellation clauses in their contracts required customers to pay the entire cost of the program, even if they had attended only one or two laser sessions.

While it is generally acceptable that companies require payment of a cancellation fee, the ACCC considered that this clause was likely unfair due to the fact that the costs were far great than the cost to Advanced Hair Studio for early cancellation.

Advanced Hair Studio has provided the ACCC with a court enforceable undertaking to refund customers 80% of the total price of the program, less $150 for sessions attended and establish an Australian Consumer Law Compliance Program.

If you need advice regarding your contracts and their compliance with the Australian Consumer Law, please don’t hesitate to contact me at  or call me at 1300 033 934 for a no-obligation quote.