ACCC sues Ashley & Martin over hair replacement contracts

The ACCC has launched legal action against hair loss treatment firm Ashley & Martin, alleging its contracts are unfair.

The doctor advises his client in the Ashley & Martin television ad.

Hair replacement company Ashley & Martin is facing allegations its contract terms are unfair in Federal Court proceedings launched by the Australian Competition and Consumer Commission.

The consumer watchdog says that clauses in the standard contracts used for the company’s Personal RealGROWTH Program are unfair under Australian Consumer Law, by requiring customers to pay for a 12 month treatment in full with only two days to consider the risks and to opt out. It’s seeking declarations that the terms are unfair and therefore void, and an order for consumers to be refunded.

“The ACCC is concerned that two days is not long enough for people to consider advice on medication they would be receiving over an extended period of time as part of Ashley & Martin’s program,” said ACCC Commissioner Sarah Court.

“Consumers considering contracts for medical treatments are often in a vulnerable position. 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.”

According to the ACCC, customers attend an initial consultation with a sales consultant and then typically sign up for a 12-month treatment program during the consultation and seek medical consultation after they’ve signed up.

Ms Court said the clauses could leave customers wanting to terminate before seeing a doctor substantially out of pocket.

“The program costs thousands of dollars to sign up to,” she said.

The clauses have been in the three standard form contracts used by the Ashley & Martin program between November 2013 and July this year, the ACCC said.

But in a statement defending itself against the allegations, Ashley & Martin said the program does not require clients to pay the full cost up front and that it allows clients to pay in monthly instalments.

It said that the two-day clause was changed in July of this year, increasing the “opt out” period to seven days, after more than 12 months of talks with the watchdog.

“Ashley and Martin has also contacted all patients who requested to cancel their Personal RealGROWTH Program contract since June 2014, to inform them about the new “opt out” contract clause, and to invite them to contact Ashley and Martin to obtain a refund if the “opt out” clause was in their contracts,” the company said in a statement.

“Ashley and Martin also provides a full money back guarantee should the treatment not prove successful between eight to 12 months.”

The company provides hair loss treatments and replacement programs to customers in its Australia, New Zealand and Singapore clinics.