Hair salon scam transfer, can my prepaid card still be used?
[2] Compiled from: Shandong High Court
Case review
In 2019, Chen opened a hair salon in Yongjia County, Wenzhou City, Zhejiang Province. During the opening promotion, Ms. Ye applied for a membership card and topped up 3,000 yuan, which entitled her to a half-price member discount on beauty and hairdressing services. After obtaining the card, Ms. Ye gradually spent 722 yuan.
One day, when Ms. Ye went to the hair salon to make a purchase, she discovered that the salon had quietly changed its name. Upon entering to make a purchase, she was informed that the 50% discount previously promised by the merchant could no longer be used. Only after Ms. Ye pressed for answers did she learn that the original Yu Hair Salon had been transferred to another party due to poor management, and that she would need to top up 1,000 yuan or apply for a new membership card and top up 2,000 yuan in order to enjoy the new store’s member discount.
Ms. Ye, believing she had been subjected to deceptive consumption practices, contacted the original hair salon owner, Chen. Chen replied that the salon had been transferred and that the new store's business practices were unrelated to him. Unable to accept this response, Ms. Chen demanded a refund of the remaining balance on her card, but Chen repeatedly delayed payment, citing poor store management and personal financial difficulties.
In a fit of anger, Ms. Chen filed a lawsuit with the People's Court of Yongjia County, Wenzhou City, Zhejiang Province, demanding that Chen, the person in charge of a certain Yu hair salon, refund the remaining balance of 2,278 yuan on her card.
[1] Court Opinion
The court held that the defendant, Chen, transferred the barbershop to a third party without the plaintiff's consent and at a consumption price significantly higher than originally agreed, and that such transfer had no legal effect on the plaintiff. Since the original barbershop had been deregistered and the original contract could no longer be performed, the plaintiff's request for the defendant to return the remaining unconsumed amount of 2,278 yuan was justified, and the court supported it.
Ultimately, the court ruled that the defendant, Chen, should return to the plaintiff, Ms. Ye, the remaining unconsumed amount of 2,278 yuan.
Article 555 of the Civil Code of the People's Republic of China
With the consent of the other party, a party may transfer its rights and obligations under the contract to a third party.
[1] The author's perspective
In this case, Ms. Ye obtained a membership card at the first barbershop, indicating that a service contract had been formed between the two parties. However, Chen, the obligor under the contract, transferred the barbershop to a third party without Ms. Ye’s consent. Although the remaining balance on the card could still be used, the consumption prices were significantly higher than originally agreed, severely harming Ms. Ye’s interests. Therefore, this transfer has no legal effect on the plaintiff, Ms. Ye. However, if Ms. Ye’s consent had been obtained in advance, the rights and obligations stipulated in the contract could be transferred together, and the contract could continue to be performed.
The author reminds that the law is not merely a decoration; it only takes effect when applied in practice. The principles of voluntariness, equality, honesty, and trustworthiness should be followed between business operators and consumers. If consumers encounter obviously unreasonable or grossly unfair situations during consumption, they must take up the legal weapon to protect their legitimate rights and interests. This not only helps protect themselves but also serves as a supervisory role in society, leaving unscrupulous merchants with no place to hide.
