Top employees at Taiwan Svenson Hair Co were indicted on fraud charges yesterday for allegedly selling common shampoo products with no medical properties at unreasonably high prices.
The Taipei District Prosecutors’ Office yesterday indicted the owner of the company, Chen Ying-chi (陳穎祺), 48, and four of the company’s officials.
Prosecutors said Svenson has run seven stores in Taiwan since 2005. The company sells 47 highly priced hair health and restoration products and offers courses on hair health and rejuvenation.
Prosecutors said a customer surnamed Soong (宋), 24, had spent more than NT$460,000 on Svenson’s products and courses, but found they had had no impact on his hair loss.
Soong subsequently filed a fraud lawsuit with the Taipei District Prosecutors’ Office against the company.
Prosecutors said Hong Kong movie star Waise Lee (李子雄) had been hired to endorse the products in an advertisement.
They said Lee, who has a hair loss problem, wore a wig to prove his hair had been restored.
Prosecutors said they believed the company might have committed fraud.
Prosecutors said a man surnamed Wang (王) also endorsed Svenson’s products in an advertisement. The company allegedly filmed the man after having him cut his hair to make it look as though he had less hair and then filmed him one month later after his hair had grown back.
In a further move designed to win public trust, prosecutors said the company had movie star Aaron Chen (陳昭榮) and TV variety show host Hsu Nai-lin (徐乃麟) promote the company’s products.