Over $108k lost in prepayments to beauty businesses in first half of 2025, 464% increase from last year: Case

Over $108k lost in prepayments to beauty businesses in first half of 2025, 464% increase from last year: Case

Asia One·2025-08-05 19:00

In the first six months of 2025, consumers have lost over $108,000 in beauty service prepayments, revealed the Consumers Association of Singapore (Case) — a staggering 464 per cent increase from the $19,000 losses that was reported in the beauty industry in the first half of 2024.

The consumer watchdog said on Tuesday (Aug 5) it received 558 consumer complaints in the beauty sector from January to June 2025, down slightly from the 600 complaints made across the same period in 2024.

Of the beauty sector complaints this year, feedback on aggressive or misleading sales tactics comprises about 28 per cent, with many cases involving consumers who were pressured into signing high-value packages under unclear or exaggerated promises.

In one instance, a consumer who had signed a contract value of over $370,000 alleged that the business engaged in aggressive, high-pressure sales tactics, made false promises that were not fulfilled, offered misleading discounts and overcharged.

"Despite a slight drop in complaint numbers, the beauty industry remains a concern due to the sharp increase in prepayment-related losses," said Case president Melvin Yong.

Consumers are encouraged to patronise CaseTrust-accredited spas and beauty salons which offer a five-day cooling-off period, prepayment protection and have a "no selling" policy.

Most complaints in car industry

Across all industries, Case received 6,253 consumer feedback in the first half of 2025 as compared to 7,721 in the same period in 2024, which had some "high-profile incidents" such as the failed Sky Lantern Festival.

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The car industry remained the top complaint category with 573 cases, said the association.

Complaints pertaining to electric vehicles grew from 33 in the first half of 2024 to 47 in 2025. In general, consumers complained of defective components and issues regarding the charging of the EVs.

Yong saidthe association expects to see an increase in EV-related complaints as more car owners take up EVs, and is working with car-sharing operators to develop a CaseTrust accreditation scheme for the sector.

"This will allow consumers to patronise operators who have committed to consumer-friendly policies and provide an efficient dispute resolution mechanism," he elaborated.

Concerns over e-commerce 

The watchdog said it recorded more complaints against online travel agents, with 139 cases reported in the first half of 2025.

These complaints include misleading descriptions of hotel accommodations, website glitches that led to duplicate or inflated charges, and confirmed bookings that were not honoured.

Yong said Case is looking to encourage wider adoption of the CaseTrust scheme for e-businesses.

He added that the Consumer Protection Review Panel is also looking at unfair practices commonly used by online merchants, with the aim of recommending enhancements to their consumer protection regime.

"With more transactions taking place online, we need to strengthen consumer protection in the e-commerce space such as mandating merchant verification, establishing escrow accounts for e-commerce transactions, and having a clear dispute resolution framework for consumers to seek recourse," he said.

Yong added that there has been a rising transaction value of the disputes lodged with Case, such as home renovation contracts which values commonly exceed $20,000.

"Case calls on the Government to review the current $20,000 jurisdiction limit of the Small Claims Tribunals, so as to provide consumers with continued access to low-cost dispute resolution."

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lim.kewei@asiaone.com

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