Irish competition regulator warns hairdressing bodies about price fixing

The Competition and Consumer Protection Commission (CCPC) has written to the Irish Hairdressers Federation (IHF) and the Hairdressing Council of Ireland after the organisations reportedly suggested their members might act unilaterally to introduce additional fees and hike prices.

The IHF and the Hairdressing Council both recently referred to ‘Covid charges’ and possible price increases, mainly to cover the extra costs associated with PPE.

The CCPC has now been in contact with both bodies to remind them of their obligations under competition law. It said that it received a positive response from them, noting that despite the economic challenges faced by many businesses, they must continue to act independently in considering changes to pricing.

“Trade associations are free to advise their members on how to address the challenges they are facing. However, the practice of trade associations suggesting future prices, or coordinating ways of passing on costs to consumers, could constitute an infringement of competition law,” it added.

The CCPC also reminded businesses of the need to inform consumers of any changes to pricing or the adding of new charges.

“Whilst the vast majority of businesses act in good faith and do not seek to take unfair advantage, in these challenging times there is a heightened risk that a small minority of traders may engage in commercial practices, which are damaging to consumers,” said Isolde Goggin, chair of the CCPC. “If a business is introducing new prices or charges or making changes to business practices, they must be transparent and inform customers before they buy. We are active across the full scope of our remit and we will not hesitate to address business practices which cause harm to consumers as a result of a breach of either competition or consumer protection law.”

An IHF spokesperson told The Irish Times that it had worked closely with other trade associations in the hair and beauty sector with the sole objective of developing strict guidelines to ensure the safety of staff and clients. “While the Irish Hairdressers Federation has issued strict and extensive guidelines on reopening safely, it is not our role to make any recommendations on prices as this is a matter for each individual salon owner to decide.”