However, some things blew over and they found out that Locks Of Love was actually SELLING a certain amount of wigs, as opposed to giving them all away.
I'm not sure if it's really considered a scandal. It says right on the website.

"9. Hair that is short, gray, or unsuitable for children will be separated from the ponytails and sold at fair market value to offset the cost of manufacturing."

It makes sense to me. If your hair can't be used to make a childs wig then they sell to hair to make money for the program. It's a non profit organization, so any profits that are made go back directly to benefit the program of making wigs for children.