Halfway through what was supposed to be a relaxing manicure session, Ms Carine Lee was approached by a salesperson.
"If you sign now, you can still lock in this year's price. If you sign the next time you're here, then the same package will cost more."
This was what she remembered being told in 2021, the now 28-year-old marketing manager said.
Her 10-session package with the salon at the time was coming to an end, so the renewal pitch was not entirely unexpected, but for it to come midway through her session was still disconcerting.
Ms Lee, who had just graduated from university then, wanted to try another salon, but found it hard to give an outright "no".
"I was worried that if I refused, the person would mess up my nails."
She declined as neutrally as she could, but her non-committal answer failed to appease the manicurists. They launched into a barrage of questions: What was she worried about? What was stopping her? Why not sign on the spot?
Feeling pressured, Ms Lee eventually caved and signed up for another package on the spot, paying S$160 for 10 sessions.
To avoid the same situation, she decided to stop going to the salon when she had five of the prepaid sessions left.
Pushy hard-sell tactics during or after aesthetic treatments remain common across Singapore's beauty industry.
Trying to reject offers in such a situation similarly backfired for 31-year-old Shan Khoo, who is now between jobs.
She bought a 10-session eyelash extension package for S$700
When Ms Khoo moved house and found the nail salon's location inconvenient, she told the manicurist that she did not intend to renew her package. A curious pattern then emerged: she was unable to fix any appointments after that.
"The first time, the therapist had to cancel because she had COVID-19. Another time, she said her kid had an eye injury.
"Then the third time, she had COVID-19 again."
Given the difficulty of booking appointments, Ms Khoo completed only seven sessions over one-and-a-half years.
Ms Khoo and Ms Lee's experiences illustrate why complaints against the beauty industry remain persistently high.
The Consumers Association of Singapore (CASE) reported that the number of complaints against the industry has been steadily rising over the past three years – from 1,166 in 2023 to 1,199 in 2024.
As of Nov 30 in 2025, the number of complaints had already hit 1,261.
Most complaints were related to:
A price list for manicure services displayed outside a shop on Jan 14, 2026. (Photo: CNA/Mak Jia Kee)
Prepayment-related losses in the industry are also rising.
Numbers from CASE showed that in the first half of 2025, consumers lost more than S$108,000 after paying in advance for beauty services that were never delivered.
This was a 464 per cent increase from about S$19,000 in the same period in 2024.
The prepaid package model, which continues to persist as the main sales mode in Singapore's beauty and wellness industry, is driven by a combination of business economics, consumer psychology and regulatory gaps, industry experts said.
Dr Jane Jiaqian Wang, assistant professor of marketing at the National University of Singapore (NUS) Business School, said that with packages that run into the thousands, a business receives immediate working capital that can fund operations, expansion and equipment purchases without debt financing.
"The economic advantages are so compelling that businesses have strong incentives to maintain and refine these practices."
Mr Edward Wong, president of the Specialists in Wellness Association Singapore, said that such packages also help businesses retain customers, reduce customer acquisition costs and plan their operations more efficiently.
"If I know I have about 20 customers coming in every day based on the packages sold, I can ensure I have enough manpower and ... don't need to have therapists sitting around waiting for walk-ins. I can optimise their working time," he explained, adding that this is a "very important" consideration given today's high manpower costs.
Mr Wong pointed out that such upfront payment models are widely used and are also common in sectors such as healthcare, telecommunications and fitness, where repeated visits are expected, and subscription models help manage costs.
"There are valid reasons for businesses to sell prepaid packages, not only in the beauty industry but also in other industries."
Another reason given by Mr Elvis Lee, managing director of skincare solutions provider Caring Skin Medispa, was that some conditions such as acne require consistency of treatment over time.
Having a package, he said, makes it easier to design structured treatment plans and deliver predictable outcomes.
At the same time, it also provides businesses with financial stability to manage manpower, training and rental commitments, as well as to invest in service quality.
Mr Elvis Lee, managing director of Caring Skin Medispa, at its Ngee Ann City flagship store on Jan 14, 2026. (Photo: CNA/Mak Jia Kee)
Although prepaid packages make commercial sense for businesses, it does not mean that consumers are obliged to take up these offers. So why sign up when there are known risks?
Experts told CNA TODAY that part of the answer lies in the perceived value, because consumers are often drawn to the headline savings. The packages typically come with discounts ranging from 20 per cent to 50 per cent.
As for the idea of forking out thousands of dollars in advance for a service that has not been provided, Dr Wang from NUS said that when such a model becomes the industry norm, the perceived "strangeness" of committing a large upfront sum decreases.
"Consumers may involuntarily accept the fact that if they want to get such services, this is the price that they have to pay wherever they go."
When evaluating a package, people think abstractly about idealised future outcomes – such as clearer skin, discipline and self-care – rather than the practical realities of scheduling appointments around work, travel or other commitments.
Present bias means that the immediate satisfaction of "getting 40 per cent off" or pleasing a consultant you are sitting face-to-face with, outweighs distant concerns about regret or loss, Dr Wang added.
Consumers may also struggle to accurately assess such long-term commitments in high-pressure, emotionally charged environments.
Dr Wang said that the in-person nature of beauty services and extended consultations – where salon workers analyse a customer's skin and offer personalised attention – can create a strong sense of "reciprocity obligation", making customers uncomfortable about declining sale pitches.
A woman checking a customer's skin condition for a facial treatment on Jan 14, 2026. (Photo: CNA/Mak Jia Kee)
Dr Wang also noted that in Singapore's social context, where people tend to avoid confrontation and are sensitive to issues of "face", declining a package can feel uncomfortable, and what should be a purely transactional experience becomes personal.
This is evident for Ms Katie Chan, who finds it "tricky" to decline extra treatments, especially when the salon's manager is friendly and offers her a new treatment at a "special" price.
"It's tough because I've spent thousands at the salon in the last two years, but the therapists usually talk in a way that makes me feel they understand my pain points and genuinely want to recommend more helpful treatments," the 33-year-old business development manager said.
And then there is also the guilt where therapists remind you that self-care is important and that you would end up spending more if you do not buy that package immediately.
Ms Chan said: "Sometimes, even when I say I need to think about it during the session, they keep explaining the benefits ... telling me that this special discounted price won't be there anymore when I come back next month."
She recalled that after signing up for the latest package last year, which cost about S$3,000, she mulled over it for weeks, questioning whether she made the right decision.
AVOID UNREALISTIC DISCOUNTS
Mr Edward Wong, president of the Specialists in Wellness Association Singapore, said that consumers need to be more discerning.
They should distinguish between genuine savings off established prices and offers that appear too good to be true, such as "S$38 for a S$600 treatment".
"Consumers may want to take advantage of trial treatments, but they are advised to do some checking before committing to large packages."
Mr Wong also said that steep discounts are sometimes made possible only because prices were first inflated.
Therefore, consumers should ask how much the treatment was sold for in the previous year and whether prices are comparable to those of similar salons in the same area, with similar premises, products and therapist qualifications.
He added that consumers should look for value and not just cheap deals. "When discounts reach 90 per cent, that should raise questions."
NOT ALL OPERATORS RELY ON PREPAID PACKAGES
Consumers should not feel like they must sign up for a prepaid package to patronise a beauty salon.
Some beauty salon operators said that they offer both package and à la carte services, because many customers prefer the flexibility.
Ms Clara Chia, founder of Cloud9 Beauty Bar, for example, deliberately built her business around a pay-per-session model, offering packages – a credits bundle system – only if customers explicitly ask.
"We don't get a big lump-sum inflow, but our cash flow is more stable. Packages create extreme highs and lows, like very good months followed by lean ones," she said, adding that after five years, the pay-per-session model has proved to be more sustainable for her business.
CHECK THE DETAILS
Before signing any package, Mr Wong said that consumers should ask several basic but critical questions:
He cautioned that another warning sign is when the offer itself does not make sense.
For instance, if a consultant claims that a treatment is highly effective and produces results almost immediately, but then pushes a package of 20 or 30 sessions.
"If the treatment is effective, do you need to repeat it 20 times?" he asked.
Collapse Expand
Dr Seshan Ramaswami, associate professor of marketing education at Singapore Management University, likens package purchases to investments with a risk-return trade-off.
"It is not clear that these package deals are always risky or that it is unwise to buy them," he said.
Consumers may find it difficult to ask for time to consider such purchases. And salespersons are often trained to frame the package as a one-off offer tied to a trial session, he added, just like in Ms Chan's experience.
"That can create a sense of urgency, which may push consumers into accepting the package," he said.
His advice is for consumers to tell the salespersons that they are considering other salons and are not ready to decide until they have seen what else is available.
On paper, Singapore's consumer protection framework offers avenues for redress when beauty salons engage in unfair practices.
In practice, however, some consumers who sign up for prepaid beauty packages discover that the protections are narrower and harder to invoke than they expect.
Under the Consumer Protection (Fair Trading) Act, consumers may take action if a service provider engages in unfair practices, such as making false or misleading claims or using aggressive sales tactics that exert undue influence.
Although consumers often assume that key safeguards afford them protection, they do not cover most beauty packages.
Chief among these is the Lemon Law, which gives buyers remedies for defective goods – not services, a lawyer said.
Mr Daniel Loh, director at BR Law Corporation, added: "Since beauty packages typically provide a service, it is difficult for the Lemon Law to apply unless a specific product was sold as part of the package and that product was defective."
Similarly, the commonly given five-day cooling-off period – a short window that allows consumers to cancel a contract and get a refund for unutilised services – offers limited protection.
This is because it applies primarily to direct sales contracts or to other regulated arrangements, such as time-share or long-term holiday contracts.
Mr Ivan Tay, director at law firm Robertson Chambers LLC, said that beauty packages may be subject to a five-day cooling-off period only if they fall within the legal definition of a direct sales contract.
And in practice, most beauty packages do not meet this definition, he added, because most contracts are entered into when consumers walk into shops or respond to promotions, rather than through unsolicited doorstep or workplace sales.
The main exception is when salons voluntarily undergo CaseTrust accreditation, Mr Tay said.
Ms Clara Chia, 29, founder of Cloud9 Beauty Bar, started her business to address a gap in the beauty market by running a pay-per-session business model. (Photo: CNA/Raj Nadarajan)
CASE's president Melvin Yong said that CaseTrust-accredited spas and beauty salons are required under the accreditation scheme to provide a five-day cooling-off period, uphold a "no selling" policy during treatments, and protect customer prepayments through insurance.
Right now, there are 600 CaseTrust-accredited spas and beauty salons in Singapore.
Only businesses applying for a Category I massage establishment licence – the licence that allows a spa or massage business broader operating privileges – must be CaseTrust-accredited as part of the licensing conditions.
Most other beauty and wellness businesses are not legally required to obtain CaseTrust accreditation, which remains voluntary for the rest of the industry.
Industry figures suggest that there are about 6,000 operators in total.
These include salons, spas, massage establishments, as well as complementary treatment providers offering services such as beauty, hair, nail, slimming and various forms of massage.
Mr Wong of the Specialists in Wellness Association Singapore noted that there are pros and cons to accreditation.
It offers businesses recognition as verified operators and an extra selling point when offering packages, but it also comes with costs.
Operators must undergo periodic audits, meet administrative and insurance requirements, and commit significant management time to maintaining CaseTrust protocols.
There are limits on the amount that prepaid packages can be insured for, and, in some cases, directors are required to provide personal guarantees.
For smaller businesses, these costs and liabilities can be substantial, Mr Wong said.
When salons shut down unexpectedly or refuse to honour prepaid services, consumers' options narrow further.
In principle, consumers may seek refunds or compensation for breach of contract. If a salon refuses to provide the agreed services, consumers can insist on performance or sue for breach, depending on the contract terms.
However, if a business closes, especially due to insolvency, recovery becomes far more uncertain.
"In this scenario, the consumer typically stands as an unsecured creditor," Mr Loh the lawyer said. This means the consumer must share any remaining assets with other creditors in liquidation proceedings.
Even when consumers succeed legally, enforcement may bring little comfort.
Mr Tay said that the courts may void contracts in cases involving misrepresentation or undue influence, particularly where elderly consumers are involved, but recovery of spent monies is "another story" if the business has no cash or assets left.
Both lawyers said that high-pressure selling can cross the legal line when it exploits a consumer's vulnerability.
Under the Act, unfair practices include situations in which a service provider exploits a consumer whom it knows – or ought reasonably to know – is not in a position to protect their own interests.
Mr Loh cited examples such as preventing customers from leaving until they agree to a purchase, stopping a treatment midway if a consumer refuses to buy a package, or selling services while customers are in compromising positions during facials or massages.
Making unsubstantiated guarantees, such as claims that a treatment can prevent dementia, may also constitute unfair practice.
Recent enforcement actions illustrate where that line may be drawn.
The Competition and Consumer Commission of Singapore (CCCS) previously took action against operators such as Salon One Beauty Salon, which then undertook to stop false and misleading claims and pressure-selling tactics.
Another case involved DNA Brands Co, which was referred to the CCCS over alleged hard-selling and misleading practices involving seniors.
Still, the experts said that enforcement remains largely reactive.
"And the burden of proof often falls on consumers who must demonstrate that specific illegal practices occurred," Dr Wang from NUS said.
Ultimately, the two lawyers said that some level of risk is inherent in prepaid arrangements. Businesses can fail and even successful legal claims may not yield refunds if there are no assets left to recover.
"While consumer rights certainly need to be protected and are indeed protected by current consumer protection laws, there are always risks when entering into any contract," Mr Tay said.
For some people, the impact is not just financial but also psychological.
Consumers who spoke to CNA TODAY said that they reported feeling dread upon returning to these salons and later regretting paying a substantial sum for the packages.
Retiree Oh Hui Kheng, 61, said that she still has several unused sessions in a S$1,000 package she bought years ago at a beauty salon, but has avoided returning.
Describing herself as a soft-hearted person, Mdm Oh said that she often found it difficult to decline repeated sales pitches.
She now strives to keep conversations short during beauty treatments to avoid being pressured into buying more, but in the end, she prefers to avoid visiting such places entirely to be "safe".
"(If you go) back, they will pressure you to sign more, and then you end up paying more. So I'd rather forgo this amount (rather than spending more again)."
Continue reading...
"If you sign now, you can still lock in this year's price. If you sign the next time you're here, then the same package will cost more."
This was what she remembered being told in 2021, the now 28-year-old marketing manager said.
Her 10-session package with the salon at the time was coming to an end, so the renewal pitch was not entirely unexpected, but for it to come midway through her session was still disconcerting.
Ms Lee, who had just graduated from university then, wanted to try another salon, but found it hard to give an outright "no".
"I was worried that if I refused, the person would mess up my nails."
She declined as neutrally as she could, but her non-committal answer failed to appease the manicurists. They launched into a barrage of questions: What was she worried about? What was stopping her? Why not sign on the spot?
Feeling pressured, Ms Lee eventually caved and signed up for another package on the spot, paying S$160 for 10 sessions.
To avoid the same situation, she decided to stop going to the salon when she had five of the prepaid sessions left.
Pushy hard-sell tactics during or after aesthetic treatments remain common across Singapore's beauty industry.
Trying to reject offers in such a situation similarly backfired for 31-year-old Shan Khoo, who is now between jobs.
She bought a 10-session eyelash extension package for S$700
Related:
When Ms Khoo moved house and found the nail salon's location inconvenient, she told the manicurist that she did not intend to renew her package. A curious pattern then emerged: she was unable to fix any appointments after that.
"The first time, the therapist had to cancel because she had COVID-19. Another time, she said her kid had an eye injury.
"Then the third time, she had COVID-19 again."
Given the difficulty of booking appointments, Ms Khoo completed only seven sessions over one-and-a-half years.
Ms Khoo and Ms Lee's experiences illustrate why complaints against the beauty industry remain persistently high.
The Consumers Association of Singapore (CASE) reported that the number of complaints against the industry has been steadily rising over the past three years – from 1,166 in 2023 to 1,199 in 2024.
As of Nov 30 in 2025, the number of complaints had already hit 1,261.
Most complaints were related to:
- Pressure selling
- Unfulfilled services despite prepayments
- Services not delivered to consumers' expectations
- Prices not being transparently disclosed
A price list for manicure services displayed outside a shop on Jan 14, 2026. (Photo: CNA/Mak Jia Kee)
Prepayment-related losses in the industry are also rising.
Numbers from CASE showed that in the first half of 2025, consumers lost more than S$108,000 after paying in advance for beauty services that were never delivered.
This was a 464 per cent increase from about S$19,000 in the same period in 2024.
WHY PREPAYMENT IS COMMON
The prepaid package model, which continues to persist as the main sales mode in Singapore's beauty and wellness industry, is driven by a combination of business economics, consumer psychology and regulatory gaps, industry experts said.
Dr Jane Jiaqian Wang, assistant professor of marketing at the National University of Singapore (NUS) Business School, said that with packages that run into the thousands, a business receives immediate working capital that can fund operations, expansion and equipment purchases without debt financing.
"The economic advantages are so compelling that businesses have strong incentives to maintain and refine these practices."
Mr Edward Wong, president of the Specialists in Wellness Association Singapore, said that such packages also help businesses retain customers, reduce customer acquisition costs and plan their operations more efficiently.
"If I know I have about 20 customers coming in every day based on the packages sold, I can ensure I have enough manpower and ... don't need to have therapists sitting around waiting for walk-ins. I can optimise their working time," he explained, adding that this is a "very important" consideration given today's high manpower costs.
Mr Wong pointed out that such upfront payment models are widely used and are also common in sectors such as healthcare, telecommunications and fitness, where repeated visits are expected, and subscription models help manage costs.
"There are valid reasons for businesses to sell prepaid packages, not only in the beauty industry but also in other industries."
Another reason given by Mr Elvis Lee, managing director of skincare solutions provider Caring Skin Medispa, was that some conditions such as acne require consistency of treatment over time.
Having a package, he said, makes it easier to design structured treatment plans and deliver predictable outcomes.
At the same time, it also provides businesses with financial stability to manage manpower, training and rental commitments, as well as to invest in service quality.
Mr Elvis Lee, managing director of Caring Skin Medispa, at its Ngee Ann City flagship store on Jan 14, 2026. (Photo: CNA/Mak Jia Kee)
Although prepaid packages make commercial sense for businesses, it does not mean that consumers are obliged to take up these offers. So why sign up when there are known risks?
Experts told CNA TODAY that part of the answer lies in the perceived value, because consumers are often drawn to the headline savings. The packages typically come with discounts ranging from 20 per cent to 50 per cent.
As for the idea of forking out thousands of dollars in advance for a service that has not been provided, Dr Wang from NUS said that when such a model becomes the industry norm, the perceived "strangeness" of committing a large upfront sum decreases.
"Consumers may involuntarily accept the fact that if they want to get such services, this is the price that they have to pay wherever they go."
When evaluating a package, people think abstractly about idealised future outcomes – such as clearer skin, discipline and self-care – rather than the practical realities of scheduling appointments around work, travel or other commitments.
Present bias means that the immediate satisfaction of "getting 40 per cent off" or pleasing a consultant you are sitting face-to-face with, outweighs distant concerns about regret or loss, Dr Wang added.
Consumers may also struggle to accurately assess such long-term commitments in high-pressure, emotionally charged environments.
Dr Wang said that the in-person nature of beauty services and extended consultations – where salon workers analyse a customer's skin and offer personalised attention – can create a strong sense of "reciprocity obligation", making customers uncomfortable about declining sale pitches.
A woman checking a customer's skin condition for a facial treatment on Jan 14, 2026. (Photo: CNA/Mak Jia Kee)
Dr Wang also noted that in Singapore's social context, where people tend to avoid confrontation and are sensitive to issues of "face", declining a package can feel uncomfortable, and what should be a purely transactional experience becomes personal.
This is evident for Ms Katie Chan, who finds it "tricky" to decline extra treatments, especially when the salon's manager is friendly and offers her a new treatment at a "special" price.
"It's tough because I've spent thousands at the salon in the last two years, but the therapists usually talk in a way that makes me feel they understand my pain points and genuinely want to recommend more helpful treatments," the 33-year-old business development manager said.
And then there is also the guilt where therapists remind you that self-care is important and that you would end up spending more if you do not buy that package immediately.
Ms Chan said: "Sometimes, even when I say I need to think about it during the session, they keep explaining the benefits ... telling me that this special discounted price won't be there anymore when I come back next month."
She recalled that after signing up for the latest package last year, which cost about S$3,000, she mulled over it for weeks, questioning whether she made the right decision.
WHAT CONSUMERS SHOULD WATCH OUT FOR
AVOID UNREALISTIC DISCOUNTS
Mr Edward Wong, president of the Specialists in Wellness Association Singapore, said that consumers need to be more discerning.
They should distinguish between genuine savings off established prices and offers that appear too good to be true, such as "S$38 for a S$600 treatment".
"Consumers may want to take advantage of trial treatments, but they are advised to do some checking before committing to large packages."
Mr Wong also said that steep discounts are sometimes made possible only because prices were first inflated.
Therefore, consumers should ask how much the treatment was sold for in the previous year and whether prices are comparable to those of similar salons in the same area, with similar premises, products and therapist qualifications.
He added that consumers should look for value and not just cheap deals. "When discounts reach 90 per cent, that should raise questions."
NOT ALL OPERATORS RELY ON PREPAID PACKAGES
Consumers should not feel like they must sign up for a prepaid package to patronise a beauty salon.
Some beauty salon operators said that they offer both package and à la carte services, because many customers prefer the flexibility.
Ms Clara Chia, founder of Cloud9 Beauty Bar, for example, deliberately built her business around a pay-per-session model, offering packages – a credits bundle system – only if customers explicitly ask.
"We don't get a big lump-sum inflow, but our cash flow is more stable. Packages create extreme highs and lows, like very good months followed by lean ones," she said, adding that after five years, the pay-per-session model has proved to be more sustainable for her business.
CHECK THE DETAILS
Before signing any package, Mr Wong said that consumers should ask several basic but critical questions:
- How long is the package valid for?
- Is there a cooling-off period or a short window after signing where the customer is allowed to cancel and receive a refund?
- What are the cancellation or refund policies? And when, if at all, are refunds possible?
- What happens if the treatment turns out to be unsuitable after a few sessions?
He cautioned that another warning sign is when the offer itself does not make sense.
For instance, if a consultant claims that a treatment is highly effective and produces results almost immediately, but then pushes a package of 20 or 30 sessions.
"If the treatment is effective, do you need to repeat it 20 times?" he asked.
Collapse Expand
Dr Seshan Ramaswami, associate professor of marketing education at Singapore Management University, likens package purchases to investments with a risk-return trade-off.
"It is not clear that these package deals are always risky or that it is unwise to buy them," he said.
Consumers may find it difficult to ask for time to consider such purchases. And salespersons are often trained to frame the package as a one-off offer tied to a trial session, he added, just like in Ms Chan's experience.
"That can create a sense of urgency, which may push consumers into accepting the package," he said.
His advice is for consumers to tell the salespersons that they are considering other salons and are not ready to decide until they have seen what else is available.
HOW ARE CUSTOMERS PROTECTED?
On paper, Singapore's consumer protection framework offers avenues for redress when beauty salons engage in unfair practices.
In practice, however, some consumers who sign up for prepaid beauty packages discover that the protections are narrower and harder to invoke than they expect.
Related:
Under the Consumer Protection (Fair Trading) Act, consumers may take action if a service provider engages in unfair practices, such as making false or misleading claims or using aggressive sales tactics that exert undue influence.
Although consumers often assume that key safeguards afford them protection, they do not cover most beauty packages.
Chief among these is the Lemon Law, which gives buyers remedies for defective goods – not services, a lawyer said.
Mr Daniel Loh, director at BR Law Corporation, added: "Since beauty packages typically provide a service, it is difficult for the Lemon Law to apply unless a specific product was sold as part of the package and that product was defective."
Similarly, the commonly given five-day cooling-off period – a short window that allows consumers to cancel a contract and get a refund for unutilised services – offers limited protection.
This is because it applies primarily to direct sales contracts or to other regulated arrangements, such as time-share or long-term holiday contracts.
Mr Ivan Tay, director at law firm Robertson Chambers LLC, said that beauty packages may be subject to a five-day cooling-off period only if they fall within the legal definition of a direct sales contract.
And in practice, most beauty packages do not meet this definition, he added, because most contracts are entered into when consumers walk into shops or respond to promotions, rather than through unsolicited doorstep or workplace sales.
The main exception is when salons voluntarily undergo CaseTrust accreditation, Mr Tay said.
Ms Clara Chia, 29, founder of Cloud9 Beauty Bar, started her business to address a gap in the beauty market by running a pay-per-session business model. (Photo: CNA/Raj Nadarajan)
CASE's president Melvin Yong said that CaseTrust-accredited spas and beauty salons are required under the accreditation scheme to provide a five-day cooling-off period, uphold a "no selling" policy during treatments, and protect customer prepayments through insurance.
Right now, there are 600 CaseTrust-accredited spas and beauty salons in Singapore.
Only businesses applying for a Category I massage establishment licence – the licence that allows a spa or massage business broader operating privileges – must be CaseTrust-accredited as part of the licensing conditions.
Most other beauty and wellness businesses are not legally required to obtain CaseTrust accreditation, which remains voluntary for the rest of the industry.
Industry figures suggest that there are about 6,000 operators in total.
These include salons, spas, massage establishments, as well as complementary treatment providers offering services such as beauty, hair, nail, slimming and various forms of massage.
Mr Wong of the Specialists in Wellness Association Singapore noted that there are pros and cons to accreditation.
It offers businesses recognition as verified operators and an extra selling point when offering packages, but it also comes with costs.
Operators must undergo periodic audits, meet administrative and insurance requirements, and commit significant management time to maintaining CaseTrust protocols.
Related:
There are limits on the amount that prepaid packages can be insured for, and, in some cases, directors are required to provide personal guarantees.
For smaller businesses, these costs and liabilities can be substantial, Mr Wong said.
When salons shut down unexpectedly or refuse to honour prepaid services, consumers' options narrow further.
In principle, consumers may seek refunds or compensation for breach of contract. If a salon refuses to provide the agreed services, consumers can insist on performance or sue for breach, depending on the contract terms.
However, if a business closes, especially due to insolvency, recovery becomes far more uncertain.
"In this scenario, the consumer typically stands as an unsecured creditor," Mr Loh the lawyer said. This means the consumer must share any remaining assets with other creditors in liquidation proceedings.
CAN CONSUMERS RECOVER PREPAID LOSSES?
Even when consumers succeed legally, enforcement may bring little comfort.
Mr Tay said that the courts may void contracts in cases involving misrepresentation or undue influence, particularly where elderly consumers are involved, but recovery of spent monies is "another story" if the business has no cash or assets left.
Both lawyers said that high-pressure selling can cross the legal line when it exploits a consumer's vulnerability.
Under the Act, unfair practices include situations in which a service provider exploits a consumer whom it knows – or ought reasonably to know – is not in a position to protect their own interests.
Mr Loh cited examples such as preventing customers from leaving until they agree to a purchase, stopping a treatment midway if a consumer refuses to buy a package, or selling services while customers are in compromising positions during facials or massages.
Making unsubstantiated guarantees, such as claims that a treatment can prevent dementia, may also constitute unfair practice.
Recent enforcement actions illustrate where that line may be drawn.
The Competition and Consumer Commission of Singapore (CCCS) previously took action against operators such as Salon One Beauty Salon, which then undertook to stop false and misleading claims and pressure-selling tactics.
Another case involved DNA Brands Co, which was referred to the CCCS over alleged hard-selling and misleading practices involving seniors.
Still, the experts said that enforcement remains largely reactive.
"And the burden of proof often falls on consumers who must demonstrate that specific illegal practices occurred," Dr Wang from NUS said.
Ultimately, the two lawyers said that some level of risk is inherent in prepaid arrangements. Businesses can fail and even successful legal claims may not yield refunds if there are no assets left to recover.
"While consumer rights certainly need to be protected and are indeed protected by current consumer protection laws, there are always risks when entering into any contract," Mr Tay said.
For some people, the impact is not just financial but also psychological.
Consumers who spoke to CNA TODAY said that they reported feeling dread upon returning to these salons and later regretting paying a substantial sum for the packages.
Retiree Oh Hui Kheng, 61, said that she still has several unused sessions in a S$1,000 package she bought years ago at a beauty salon, but has avoided returning.
Describing herself as a soft-hearted person, Mdm Oh said that she often found it difficult to decline repeated sales pitches.
She now strives to keep conversations short during beauty treatments to avoid being pressured into buying more, but in the end, she prefers to avoid visiting such places entirely to be "safe".
"(If you go) back, they will pressure you to sign more, and then you end up paying more. So I'd rather forgo this amount (rather than spending more again)."
Related:
Continue reading...