Beauty industry prepayment losses up almost 18 times to over $1.9 million in first half of 2026: CASE

AI generated

SINGAPORE – Consumer complaints involving the beauty industry topped the Consumers Association of Singapore’s (CASE) list for the first half of 2026, with reported prepayment losses of more than $1.9 million.

This is almost 18 times the $108,000 recorded in the same period in 2025, CASE said in a statement on Aug 14.

Prepayment losses refer to cases in which consumers paid in advance for services that were never delivered.

The beauty industry also topped the number of complaints made to CASE in the first half of 2026 with 1,124, more than double the 558 during the same period in 2025. The motorcar industry had topped the list of complaints received by CASE in the first six months of 2025, with 573.

CASE said the increases in complaints and prepayment losses in the beauty industry were largely driven by the sudden closure of several beauty and wellness businesses.

Overall, the 6,684 complaints CASE received from January to June represented a 6.9 per cent increase from the 6,253 in the corresponding period in 2025.

Electrical and electronics, motorcars, travel and renovation contractors rounded the top five industries which CASE received complaints about. The top five in the first half of 2025 were motorcars, electrical and electronics, beauty, renovation contractors and telecommunications.

Of the 1,124 complaints lodged against the beauty industry in the first half of 2026, nearly four in 10 are related to businesses failing to honour their contractual obligations.

These include cases where consumers did not receive the services they paid for due to sudden business closures.

CASE said the closure of Royal Secrets Wellness on Feb 28 resulted in prepayment losses over $1 million, while the closure of Wan Yang Health Product and Foot Reflexology Centre resulted in over $137,000 lost.

One customer lost about $50,000 in prepayments to Royal Secrets Wellness.

CASE President Melvin Yong said the increase in prepayment losses underscores the risks of making large upfront payments for beauty packages, especially when businesses close suddenly.

“Consumers should avoid making large advance payments where possible and consider paying per use or in smaller instalments,” he said.

Aside from prepayment issues, other complaints against the beauty industry include those involving alleged unethical sales tactics (15.3 per cent) and delayed, refused or withheld refunds (13.8 per cent).

Travel industry sees rise in complaints amid geopolitical tensions

Complaints made against the travel industry jumped 76.4 per cent to 434 in the first half of 2026, compared with 246 during the same period in 2025.

This is the first time the industry is in the top five most complained-about industries since the first half of 2022.

This increase was largely driven by complaints against online travel agents, which rose 148.9 per cent to 346 in the first half of 2026 compared with 139 in the same period in 2025.

Most complaints involve delayed, refused or withheld refunds, accounting for 39.3 per cent of the total.

The airline industry recorded 192 complaints in the first six months of 2026, an increase of 19.3 per cent.

“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,” CASE said.

“These conditions have increased the likelihood of cancellations, itinerary changes and service disruptions, particularly where transactions are made through intermediaries such as online travel agents.”

Yong advised consumers to review booking terms carefully, especially refund, cancellation and change policies, and ensure they understand whether they are dealing directly with the airline, hotel or an online travel agent.

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

Other industries see decrease in complaints

Complaints received against the other three industries in CASE’s top five list - electrical and electronics, motorcars and renovation contractors, have decreased in the first half of 2026.

A total of 530 complaints were made against the electrical and electronics industry, a 7.2 per cent decrease from 571 in the same period in 2025, with the majority (38.9 per cent) involving products that were defective or did not conform to contract terms.

The motorcars industry had 488 cases made against it, a 14.8 per cent drop from the 573 in the first half of 2025, with 45.7 per cent of complaints related to purchases and privately owned cars.

A total of 402 complaints were made against the renovation contractor industry, a dip of 1.5 per cent, with complaints mainly driven by dissatisfaction over service quality and failure to honour obligations.

Yong said CASE is closely monitoring how AI may shape the way products are marketed, priced and recommended to consumers.

“We will continue to work with government agencies, industry partners and consumers to promote fair trading, strengthen consumer confidence and encourage responsible business conduct,” he said.