Reviewing Prepayment Regulations to Enhance Consumer Protection for Elderly Consumers
Ministry of Trade and IndustrySpeakers
Summary
This question concerns Ms Joan Pereira’s inquiry on prepayment losses affecting seniors and the potential for tighter consumer protection regulations. Deputy Prime Minister and Minister Gan Kim Yong reported that seniors aged 60 and above account for 32% of 2025 loss reports and 42% of total loss amounts. He highlighted current safeguards like CaseTrust accreditation schemes for refunds and CASE education initiatives tailored for the elderly. Additionally, Deputy Prime Minister and Minister Gan Kim Yong noted that an independent Consumer Protection Review Panel is reviewing high-value package purchase protections. The panel’s findings and recommendations are expected later this year to address these ongoing consumer concerns.
Transcript
11 Ms Joan Pereira asked the Deputy Prime Minister and Minister for Trade and Industry in view of the significant prepayment losses by consumers in various sectors, particularly beauty and wellness, (a) whether the Ministry has information on the age groups of the victims; (b) if so, whether seniors aged above 60 had been more severely affected; and (c) whether the Ministry would review and tighten regulations regarding prepayments for greater consumer protection for the elderly.
Mr Gan Kim Yong: Of the reports filed by consumers with the Consumers Association of Singapore (CASE) on prepayment losses in 2025, 32% of the cases concerned consumers aged 60 years old and above. They also make up 42% of the total amount of prepayment losses filed. Specifically, for prepayment loss reports filed in the beauty and wellness sector, consumers aged 60 and above make up 35% of the cases, and 31% of the total amount of losses. The percentages are reflective of the proportion of residents aged 60 and above in the total adult resident population of Singapore.
The Government has been working closely with CASE to educate and safeguard consumers against prepayment risks. For example, we have worked with CASE to develop industry-specific CaseTrust accreditation schemes, which include the beauty and wellness or renovation sectors. Consumers of CaseTrust-accredited businesses can claim a refund of the unused portion of their prepayments if the accredited business closes under the scheme's mandatory prepayment protection. CASE also organises consumer education events to raise awareness of prepayment risks, including talks catered to elderly consumers.
In addition, the Government has convened an independent Consumer Protection Review Panel to review key consumer concerns, including the adequacy of existing protections for high-value package purchases. The Panel is expected to share its findings and recommendations later this year.