Mandate safeguards for consumers who buy prepaid packages amid surge in losses, says CASE

The Consumer Association of Singapore (CASE) has advocated for mandatory safeguards for consumers purchasing high-value prepaid packages over an extended period. This recommendation follows a significant increase in prepayment losses in Singapore's first nine months, totaling $6.69 million from January 1 to September 30. This amount is approximately 147% higher than the $2.71 million reported for all of 2025.

The surge in losses was largely attributed to the closures of fitness businesses, True Fitness, True Yoga, and Yoga Inc. CASE received 1,610 complaints involving prepayment losses of nearly $3.82 million between September 10 and 30 following these closures. The majority of these complaints (1,518) were linked to losses from True Fitness and True Yoga, while 92 complaints were related to Yoga Inc.

CASE has been aiding affected consumers in filing claims and proofs of debt with the relevant liquidators. The association's president, Melvin Yong, emphasized the need for stronger safeguards due to the limitations of voluntary measures, particularly as consumers are typically treated as unsecured creditors when a business enters liquidation.

Yong proposed three measures to protect consumers: a mandatory cooling-off period for high-value prepaid packages, a requirement for CaseTrust accreditation for businesses in sectors with substantial or long-term consumer prepayments, and the investigation of wrongful trading cases.

These measures aim to promote responsible business practices and ensure that consumers have access to clear and accurate information before making purchasing decisions. CASE stresses that these proposals are not intended to accuse any specific business or individual but rather to strengthen the overall consumer protection framework.