Dozens of consumers held a protest outside the Wanlong Medical Check Center in Luwan District yesterday morning, accusing the organization of fraudulent sales practices.
About 80 people demanded their money back for medical products they bought from the center, which is located on Hefei Road.
According to a report in Friday's edition of the Xinmin Evening News, the center's salespeople disguised themselves as medical workers from Shanghai Second Medial University to convince local residents they need various tonics and therapeutic devices.
Victims were persuaded into purchasing the products after the "medical workers" collected their hair samples, and later diagnosed them with various illnesses, the paper stated.
"Several days ago a center employee came to my house to offer a free medical check," said Zhang Xiuhua, who lives in Minhang District.
The female employee, who said her name was Shi Yanping, allegedly clipped several hairs from Zhang and her husband before she left. A week later she returned to their home with a medical report.
"She said I was OK but my husband failed the test," the 58-year-old recalled.
The couple spent 450 yuan (US$54) on a cylinder-like device which Shi boasted could treat many diseases.
Shi even gave the couple a phone number to call for more information about the test. An operator at the number told Zhang the test was part of a nationwide campaign.
"I did not realize it was a swindle until I read the report in Friday's newspaper," Zhang said.
Shanghai Second Medical University says it is also a victim as the "Hair-cutting Operation" has nothing to do with the school."
Wanlong Medical Check Center was once a subordinate company of the university, but the two organizations split three years ago.
"We reserved 10 percent of shares in the new company," said a school official surnamed Huang.
The new Wanlong Medical Center signed a one-year contract to conduct scientific research with Zhiqu Children's Products Research Institute, a local company, this year.
"Employees from the institute carried out commercial activities under the name of our university," Huang continued. "Their action violated our rights and we have been collecting evidence to protect ourselves in case we face charges."
Medical experts say the company couldn't diagnose health problems by clipping a few hairs.
"It is impossible to tell whether a person suffers any disorders by only testing the trace elements in his hair," said a local doctor.
Officials from the Wanlong Medical Center were not available for comment yesterday and center employees wouldn't give interviews.