The rescheduling is outlined on their website (see below) and I suspect would have been offered when contact was made to cancel the scheduled appointment…since it is their standard policy. If the offer wasn’t taken up, then it isn’t the fault of the business.
Offering (allowing) rescheduling to retain the $100 seems fair, especially when they could have a policy where the deposit is lost with any opportunity to reschedule.
Their website states:
If you cancel an appointment outside of 48 hours without rescheduling, the deposit will be kept on your account with us for future bookings, for up to 3 months.
I would not be able to afford to put 100.00 up front for a start, and I am a pensioner glad I live in a small Country town we make an appointment and all is well even let them know you running a little late, and they are happy good old country shopping.
It seems manifestly unfair to keep the deposit given the amount of notice given, but in another way Ella will be much more attentive to onerous T&C and in the fullness of time, $100 dollars will be a small price to pay.
It is a huge deposit. The business seems to be taking advantage of a situation where people will suddenly have to cancel, through no fault of their own.
There is a somewhat reasonable school of thought that often arises. Many of us think it is bad business but it is apparently common.
Applying it to this topic it runs something like… I am running a business and need to pay my own bills and hopefully make a profit. If a customer cancels for any reason and my revenue is reduced why should it be my problem regardless if they changed their minds, were in an auto accident, were taken ill, or whatever? Should I risk my livelihood because of their problems?
The challenge is to formulate a policy that is fair and consistently applied. If any policy is not consistently applied it does not exist in a legal sense, so they sometimes are between the rock and hard place.
This shop has a fairly hard edged policy but it seems to be a top end business and they may simply be trying to protect themselves from people who make and break bookings for their own convenience, and the majority of their clients are metro.
I would not make such a hard edged policy, but I do not run an exclusive high end business so I do not have first hand knowledge of the supposed problem they are trying to address. Given enough publicity or low key dialogue they might reconsider and provide refunds if cancelled say 2 or more weeks out and they can get another booking to fill in; if it is an exclusive place there should be a queue of clients hoping to get cancellations for their own short notice needs.
If you look at the website, you will see that this business thinks very highly of themselves and have a ‘take no prisoners’ approach. This exclusivish snobbery is very attractive to young 'uns who believe outward physical appearance is valuable social media currency.
I would suggest that they were fed up with short notice cancellations which cost them, and so they instituted this non-refundable $100 bond to book an appointment. You may note that they are trying to move into franchising, and therefore need to be very clear and consistent on standard operating procedures (SOPs) that have to be documented and promulgated to franchisees. As outlined by earlier posters, they have allowed for re-scheduling, and likely offered it to Ella as part of their SOPs.
This is in effect a change of mind, and if Ella texted that she wanted to cancel, the business has no obligation to refund. They should have offered to reschedule. If this was rejected, then keeping the bond is not unfair @mykeylane.
Whether the business offered to reschedule or not, if Ella wishes to proceed and spend a lot more money there for the hair extensions, I would suggest Ella attempts to make another appointment using the bond that she paid.
It may also be worth shopping around and/or getting recommendations from friends/family about a local salon if a trip to Sydney is not possible in the 3 month window. She might find going local she might save her more than the $100…but won’t have the same potential ‘bragging rights’.
I’m on your side.
When did all this start? This type of demand for a deposit at a hairdresser?
I suggest you contact the ACCC, and particularly Fair Trading. Fair Trading (FT) will have an Act, perhaps the Consumer’s Act, that will assist you. They may also have Fact Sheets on this matter/subject.
Also FT will be able to assist you with mediating.
I think by law, the deposit is transferable.
Ask FT and/or ACCC.
It’s been common for some time now for certain businesses to advise they may charge a cancellation fee for appointments not kept. Some businesses many may have observed include GP’s/Medical Services, Dentistry, Accommodation Providers, ……
I could quote examples from more than a decade past of other businesses, EG floor sanding and polishers who have included the non-refundable deposit in their T&C’s.
If there is a specific example in legislation or legal determination that supports otherwise, it may be of benefit to all if any can provide further details?
There are a number of prior posts also considering what is reasonable and practical. A variety of view points have been shared.
Unfortunately this Act doesn’t cover fees associated with cancellation of bookings. The only mention of fees is section 3 which states:
An individual must not act as a hairdresser for fee, gain or reward unless the individual is qualified to act as a hairdresser.
There isn’t any information to indicate that the hairdresser in question was not qualified to act as a hairdresser.
Cancellations, their terms and conditions and associated fees come under the terms and conditions of the engagement of services, which falls under the responsibilities of the ACCC.
Alternately businesses large, medium and small are well informed if they so choose. There are many law firms which specialise in business law.
If there is a point to be made, is it to understand what is required of the business as well as of the customer?
One view that reflects advice a business might receive.
The booking date being discussed is now well in the past. For others looking at similar situations it may be useful to note several key points raised on the Lawpath article. Assuming that the customer has met any preconditions for cancellation, the article mentions,
”Furthermore, the cancellation fee itself must be reasonable and not disproportionate.”
Ask a lawyer what is “reasonable” for one answer.
Ask two lawyers what is “reasonable” and you have a court case!
Note:
The referenced article reiterates many of the points made in prior posts as to how a similar situation may be seen with reference to consumer law.
Thank you.
I’ve been a long time customer at my hairdresser. When I book I pay upfront for 4 sessions, mainly because A. It suits me, and, B. Because I get a 10% discount.
It’s been common practice that if I miss an appointment, usually with more than 24 hours notice, the payment simply gets transferred. If for example, I’m suddenly I’ll, I’m okay with forfeiting the payment.
Usually because I’ve been a long time customer, my hairdresser won’t let me lose the money, and simply transfers to the next time.
Recently I was encouraged to book up until Christmas and was encouraged to pay next time I was in.
Then, through their system I received all my bookings requesting a deposit for each. Potentially the deposit could be transferable, however that wasn’t clear.
It was quite a surprise. I cancelled all the bookings. And have one next week which is already paid for.
We have two local hairdressers and no barber. One hairdresser has but one staff and the other up to 4 staff. There are no drop ins and zero prepayments because both are always fully booked days in advance. The notion of paying a non refundable deposit is an unknown as is paying a premium for a short back and sides. The last mostly due to the lack of need to barber on top.
If a hair cutter requires a deposit in advance are we mostly amazed that a deposit is at all required?
The terms of the contract were explicit - non refundable. I am really not impressed with people who choose to disregard clear terms then complain when their gamble doesn’t work. She didn’t even try a reschedule.
If you don’t like the idea of a non refundable deposit - then don’t use that company! Tell them why you won’t be using them.
You should be teaching your granddaughter about taking responsibility for her decisions.
I contacted a beauty salon via its sponsored advertisement post in Facebook. After making a few general enquirers about a specific treatment, I paid a deposit which they said was non-refundable. No appointment was made as apparently they hold the deposit indefinitely. I cannot have the treatment due to cancer in the area for the salon treatment. Can they legally withhold my deposit even though no appointment was ever made?
I have moved your post to a similar topic which contains information applicable to your own question.
In summary of the above, whether a deposit is refundable and under what conditions will depend on the terms and conditions associated with the non-refundable deposit. Non-refundable deposits and their terms and conditions sit outside the Australian Consumer Law.
Generally non-refundable deposits are forfeited when services aren’t commissioned and completed, or the purchase of a product isn’t paid in full. I suspect that you wont need to book an appointment to forfeit a deposit, just that you no longer want the services attached to the deposit.
You have indicated that you can’t use the services due to a medical condition. Have you spoken to the salon to see if they are willing to use their discretion in relation to your deposit and refund it to you? It never hurts in asking even though they may not have any obligation to refund it to you.
Alternatively, do they offer other services which could be used even though you have a medical condition - such as on another part of your body or different beauty treatment. This assumes the deposit isn’t restricted to a particular beauty treatment on only one part of the body. This might be a way to use your deposit, but will cost you potentially more and may not necessarily be what you are after.
If you have a copy of the non-refundable terms and conditions or link to their website, if they have one, members of the community may be able to provide a more definitive answer.
If the business is not forthcoming, unless the deposit T&C also states the deposit is non-transferable you could try selling it at value or a discount or gifting it.
This is a rather strange deposit. A sum paid as a pledge to complete payment for future supply of goods or services with no goods or services supplied. What exactly is its purpose?
If, as in your case, there is no way there can be a future exchange of goods or services how can they hold a deposit? Can they keep it legally? I don’t know and it may take a court case to find out. Is it in any way reasonable for them to keep it - not at all.
