CASE calls for mandatory safeguards after S$3.82 million in losses linked to fitness closures

The Consumers Association of Singapore (CASE) is advocating for mandatory safeguards in sectors where consumers make substantial or long-term prepayments, following the closure of several fitness businesses and resulting in nearly S$3.82 million in reported losses. CASE received 1,610 complaints between September 10 and 30, with 1,518 complaints and about S$3.78 million in losses linked to True Fitness and True Yoga, both of which closed on September 11.

Another 92 complaints, involving approximately S$32,800 in reported prepayment losses, were related to Yoga Inc.

The association claims that prepayment losses reported to CASE were 147% higher than the S$2.71 million experienced throughout all of 2025. This surge in reported losses highlights the need for stronger safeguards, particularly as consumers are typically treated as unsecured creditors when a business goes into liquidation.

CASE has proposed several measures, including mandatory cooling-off periods for high-value prepaid packages, making CaseTrust accreditation compulsory for businesses in sectors involving substantial or long-term consumer prepayments, and investigating potential cases of wrongful trading under section 239(6) of the Insolvency, Restructuring and Dissolution Act 2018.

These safeguards aim to strengthen Singapore's overall consumer protection framework and protect consumers from losses when prepaid services cannot be fulfilled due to business closures.