Singapore’s consumer watchdog has urged the government to introduce mandatory safeguards to protect consumers who purchase high-value or long-term prepaid packages, following a significant rise in reported prepayment losses this year. The call comes amid recent business closures in the fitness sector, including True Fitness, True Yoga, and Yoga Inc.
According to data shared by the Consumers Association of Singapore (CASE) on October 5, consumer losses reported from January 1 to September 30 reached S$6.69 million, representing a 147% increase compared to the S$2.71 million recorded for the entire year of 2025. Notably, between September 10 and 30, CASE received 1,610 complaints totaling nearly S$3.82 million in prepayment losses linked to the closures of the three fitness businesses. Of these, 1,538 complaints involved around S$3.78 million in losses related to True Fitness and True Yoga, while 92 complaints accounted for approximately S$32,827 connected to Yoga Inc.
CASE has been assisting affected consumers in submitting their claims and proofs of debt to the relevant liquidators. The association highlighted that consumers are typically considered unsecured creditors when a business goes into liquidation, resulting in low chances of recovering prepaid funds.
Melvin Yong, CASE president, emphasized that the recent closures and spike in losses reveal the limitations of voluntary industry measures. “The time has come to introduce mandatory safeguards in sectors involving substantial or long-term consumer prepayments,” he said.
In its statement, CASE proposed three key measures for government consideration. First, it recommended instituting a mandatory cooling-off period for high-value prepaid packages, allowing consumers time to reconsider and cancel commitments without penalty. Second, the association called for mandatory CaseTrust accreditation in sectors such as fitness and beauty, which would require businesses to implement protections including prepayment safeguards, transparent pricing, clear contract terms, full disclosure, and reasonable refund policies. Third, CASE urged for stricter enforcement regarding potential wrongful trading under the Insolvency, Restructuring and Dissolution Act, particularly in cases where large prepayments are collected shortly before liquidation.
“These proposals aim to enhance consumer protection frameworks and do not imply wrongdoing by any specific business or individual,” the association stated. Yong added that prompt introduction of these safeguards would help protect consumers’ funds, establish clearer standards for businesses, and boost consumer confidence.
CASE also pointed to international examples where similar measures have been implemented. In Taiwan, fitness centres must provide consumer protection through trust accounts or performance guarantees covering at least half of the prepaid fees. The United Kingdom requires businesses operating consumer savings schemes to safeguard payments via insurance or trust mechanisms, allowing consumers to recover funds if a business becomes insolvent. New York state mandates health clubs to secure prepaid consumer payments through financial instruments such as bonds or certificates of deposit and limits contracts to 36 months with annual fees capped at US$3,600. It also grants consumers a three-day cancellation window after signing.
The association said adopting comparable safeguards would better protect consumers in Singapore who make substantial or long-term prepaid purchases.