Beauty prepayment losses hit S$1.9m in first half of 2026, nearly 18 times higher than a year ago: CASE

The Consumers Association of Singapore received 1,124 complaints against the beauty industry in the first half of the year, more than double the 558 complaints received in the first half of 2025.

SINGAPORE: Consumers reported over S$1.9m (US$1.4m) in beauty-related prepayment losses in the first half of the year, close to 18 times the S$108,000 in losses recorded in the first half of 2025, said the Consumers Association of Singapore (CASE) on Friday (Aug 14).

The consumer watchdog received 1,124 complaints against the beauty industry, more than double the 558 recorded in the same period last year.

"The increases in complaints and prepayment losses were largely driven by the abrupt closure of several beauty and wellness businesses," said CASE.

CASE noted that nearly four in 10 complaints against the beauty industry were related to businesses failing to honour their contractual obligations, including consumers being unable to utilise prepaid packages following the sudden business closures.

Around 15.3 per cent of complaints involved alleged unethical sales tactics, while a further 13.8 per cent concerned delayed, refused or withheld refunds.

CASE cited the sudden closure of Royal Secrets Wellness in February, which saw prepayment losses exceeding S$1 million, including one individual loss of approximately S$50,000.

It also brought up the closure of Wan Yang Health Product and Foot Reflexology Centre, which resulted in more than S$137,000 in losses for unutilised prepaid packages.

Calling the sharp rise in beauty-related prepayment losses "deeply concerning", CASE president Melvin Yong warned of the risks in making large upfront payments for beauty packages.

"CASE continues to call for stronger safeguards to better protect consumers’ prepayments. In the meantime, consumers should avoid making large advance payments where possible, and consider paying per use or in smaller instalments," he added.

BREAKDOWN OF COMPLAINTS

Beauty was the most complained-about industry in the first half of 2026, overtaking motorcars, which topped the list during the same period last year.

Overall, CASE received 6,684 consumer complaints in the first half of the year, up 6.9 per cent from 6,253 in the same period in 2025.

The electrical and electronics industry ranked second with 530 complaints, followed by motorcars with 488, travel with 434 and renovation contractors with 402.

Travel complaints rose by 76.4 per cent from 246 in the first half of 2025 to 434 in the same period this year, putting the industry back among the five most complained-about sectors for the first time since the first half of 2022, said CASE.

The increase was largely driven by complaints against online travel agents, which jumped 148.9 per cent from 139 to 346 over the same period.

Separately, total e-commerce complaints fell by 11.5 per cent from 1,769 in the first half of 2025 to 1,566 in the same period this year.

Of these, 188 involved misleading claims, false claims and unfair sales or marketing tactics, a marginal increase from 187 a year earlier.

ELECTRICAL AND ELECTRONICS

The electrical and electronics industry saw a drop of 7.2 per cent from 571 in the same period last year. About 38.9 per cent of complaints involved defective products or products that did not conform to contract terms.

Another 14.7 per cent involved businesses failing to honour their contractual obligations, while 9.4 per cent concerned delayed, refused or withheld refunds.

MOTORCARS

The motorcars industry fell from first to third place, with complaints dropping 14.8 per cent from 573 in the first half of 2025 to 488 in the same period this year.

About 45.7 per cent of complaints were related to purchases and privately owned cars, while 12.5 per cent involved car-sharing services.

Common complaints involving purchases and privately owned cars included defective or non-conforming vehicles, delayed or withheld refunds and businesses failing to honour contractual obligations.

Complaints involving car-sharing services fell from 97 to 61. Common issues included disputes over damage assessments and repair costs.

"This is a reminder that consumers should exercise care when purchasing a vehicle or using car-sharing services, given the high value of such transactions and the potential costs involved when disputes arise," said Mr Yong.

"Consumers should carefully review contracts, seek clarification on warranty coverage and fees, and keep proper records before committing," he said.

For car-sharing services, CASE has worked with the Land Transport Authority to introduce the CaseTrust accreditation scheme, which gives consumers a clearer reference point when choosing an operator.

TRAVEL

About 36.9 per cent of complaints against the travel industry involved delays or refusals in processing refunds, while 17.3 per cent concerned businesses failing to honour confirmed bookings or agreed travel arrangements.

The airline industry received 192 complaints in the first half of 2026, up 19.3 per cent from 161 in the same period last year. The complaints largely involved refunds, cancellations and changes to flight itineraries.

"The rise in complaints against the travel and airline industries comes amid recent air travel disruptions caused by geopolitical tensions and changes to flight schedules," said CASE, adding that such conditions increased the likelihood of cancellations, itinerary changes and other service disruptions.

Among complaints involving online travel agents, delayed, refused or withheld refunds accounted for the largest share at 39.3 per cent.

Another 17.6 per cent involved businesses failing to honour confirmed bookings or agreed travel arrangements. These included cases where hotels did not recognise confirmed bookings or refused check-in despite consumers having valid booking vouchers.

Misleading claims accounted for a further 10.1 per cent of complaints.

Mr Yong advised consumers to carefully review refund, cancellation and change policies and understand whether they were dealing directly with an airline or hotel or with an online travel agent.

"We also encourage consumers to purchase comprehensive travel insurance with adequate coverage for trip cancellations, delays and disruptions," he said.

RENOVATION CONTRACTORS

Complaints against renovation contractors fell slightly by 1.5 per cent, from 408 in the first half of 2025 to 402 in the same period this year.

Poor workmanship accounted for 27.1 per cent of complaints, while businesses failing to honour their obligations made up 26.9 per cent.

Defective or non-conforming goods accounted for another 11.4 per cent, while delays in delivery made up 10 per cent.

E-COMMERCE

About 23.9 per cent of e-commerce complaints involved delayed, refused or withheld refunds, while 22.5 per cent concerned businesses failing to honour their contractual obligations.

Another 12.1 per cent involved defective or non-conforming goods.

About 12 per cent of all e-commerce complaints involved misleading or false claims and pressure sales.

Consumers reported businesses misrepresenting or omitting important information about products, services, pricing, promotions, warranties and return policies. Other issues included hidden fees, restrictive terms, misleading promotions, pressure selling and unclear pricing.

CASE remains "concerned" about misleading online claims and sales tactics, including the use of "dark patterns" that nudge consumers into making purchases or accepting terms they may not have intended to, said Mr Yong.

Mr Yong said: "The complaint trends in the first half of 2026 show that consumer protection must continue to evolve alongside changes in the marketplace, from prepaid packages to online transactions, shared mobility services and the growing use of artificial intelligence in e-commerce."

He added that CASE is closely monitoring how artificial intelligence may shape the way products are marketed, priced and recommended to consumers.