Key takeaways
- CASE received 2,113 complaints about the beauty industry in 2025, and the sector made up 78.6% of all prepayment losses reported to CASE.
- Pressure selling is an unfair practice under the Consumer Protection (Fair Trading) Act. CCS has acted against 15 beauty and wellness businesses over prepaid packages since 2022.
- Write clear terms: what the package covers, validity, transfer, refunds and what happens if you close.
- For GST, IRAS treats a prepaid package of specific sessions differently from stored value. Check which one you are selling.
- Track every session and balance in your POS, and give the client a record after each visit.
A salon package in Singapore usually means a client pays up front for a set of treatments, or tops up credit to spend later, often at a discount. Done well, packages reward loyal clients and smooth out your cash flow. Done badly, they lead to complaints, refunds and, in serious cases, enforcement action. This guide covers the rules, the design choices and the admin. For setting up the salon itself, see our guide to opening a salon in Singapore.
Why prepaid packages are under scrutiny
The numbers explain the attention. In its February 2026 media release, CASE reported 2,113 complaints against the beauty industry in 2025, up 76.2% from 1,199 in 2024. Beauty accounted for $2,129,979 in prepayment losses. About two in five beauty complaints involved prepayment losses from sudden closures, and about one in five involved unfair practices such as pressure sales tactics and misleading claims.
CASE used the release to call for broader CaseTrust adoption, mandatory cooling-off periods and prepayment protection, and said it would work with the Consumer Protection Review Panel on prepayment risks. In a written parliamentary reply, MTI said CCS has acted against 15 beauty and wellness businesses since 2022 for pressure selling or other unfair practices involving prepaid packages, and that the enforcement framework is under review. Expect the rules to tighten. Check CCS and CASE for updates before you change your terms.
What the law expects: the CPFTA and CCS guidance
The Consumer Protection (Fair Trading) Act (CPFTA) is the main law. MTI’s reply states plainly that it is an unfair practice to exert undue pressure or influence on a consumer to enter a transaction. The CCS page on fair trading practices for the beauty industry sets out what beauty businesses should and should not do:
- Should: give clear and accurate prices, discounts and promotions before the treatment is done; make sure discounts are genuine; make sure claims about results are true; review practices regularly.
- Should not: pressure customers to buy; sell to people who cannot clearly understand or respond; make unsubstantiated claims about results; mislead about benefits or quality.
Recent cases show what CCS looks for. In the DNA Brands case, CCS found staff keeping consumers in treatment rooms for sales pitches, asking how many credit cards they had, and in the case of elderly consumers checking CPF balances. The company committed up to $1 million for refunds, barred the staff involved from sales commissions and agreed to display a 14-day refund policy. In the HairFun case, the salons undertook to give a five-day cooling period to cancel and get a refund on any prepaid package.
We are not aware of a general legal cooling-off period for salon packages; the periods above were undertakings in specific cases. This is not legal advice, so check with CCS or a lawyer for your situation.
Designing a package clients won’t regret
A good package is one the client uses up happily. Design for that:
- Match the package to a real treatment plan. Six sessions of a treatment the client needs monthly is sensible. Thirty sessions sold on a first visit is a complaint waiting to happen.
- Keep the discount honest. Base it on your normal price list, which must be the price you actually charge.
- Offer smaller entry packages. A three-session trial package lets clients commit without a large outlay.
- Price the full list up front. Show any add-ons, products or surcharges before payment, in line with the CCS price-transparency guidelines.
Cooling-off, refunds, validity and transfer terms
Put every term in writing, give the client a copy, and have them acknowledge it before paying. Cover:
- Validity. How long sessions or credit remain usable, and whether unused sessions can be extended.
- Refunds. Whether a voluntary cooling-off period applies, and how refunds are calculated if a client cannot continue for medical or relocation reasons.
- Transfer. Whether a package can be shared with or transferred to a family member.
- Outlet changes. Whether the package can be used at other outlets, and what happens if an outlet closes.
- Price changes. Whether prepaid sessions are protected from later price increases.
A short voluntary cooling-off period, displayed at the counter, costs you little and signals confidence. It also lines up with what CASE has asked the industry to adopt.
Prepaid money is a liability, and GST depends on the product
Cash from a package has not been earned until the service is delivered. In your accounts, treat unredeemed sessions and credit as a liability, and move them to revenue as they are used. Your accountant can set up the entries; your POS should give them the balances.
If you are GST-registered, the IRAS page on GST and vouchers draws a distinction that matters for salons:
- A package of specific services, which IRAS illustrates with a “voucher for 8 facial sessions”, is treated as a supply of those services. You account for GST when it is sold, not when each session is used.
- Stored value that can be spent on any service or product is an example of a multi-redemption voucher. For how restaurants run top-up balances, see stored value and e-wallet top-ups. If you sell it at or below face value and can track redemptions, GST is generally accounted for when it is redeemed, and on any unredeemed amount at expiry.
Confirm your treatment with IRAS or your tax adviser. Our gift voucher guide covers the same voucher rules in more depth.
CaseTrust accreditation and prepayment protection
CASE runs CaseTrust accreditation, including a Spa and Wellness scheme that covers beauty, slimming, fitness, spa, wellness, nail and TCM businesses, according to the CaseTrust FAQ. Under CaseTrust’s prepayment protection, clients of accredited businesses in listed schemes, including Spa and Wellness, can claim back the unused portion of their prepayment if the business closes. Clients receive a proof of protection, and CASE says full NRIC numbers are needed to apply for it.
The FAQ lists fees, including GST, of $535 to apply, $856 for the first outlet’s assessment and $535 a year in management fees for the first outlet, with lower fees for further outlets. Accreditation for massage establishments is valid for two years, subject to a clean record. Confirm current fees and requirements with CASE.
Tracking redemptions and balances at the counter
Most package disputes come down to a disagreement about how many sessions are left. A POS that records every sale and redemption removes the argument:
- Record the package, price, terms and expiry against the client’s profile at the point of sale.
- Deduct each session at checkout, with the therapist and date.
- Print or message the remaining balance after every visit.
- Run a monthly report of outstanding sessions and credit, which is your liability figure.
- Restrict who can adjust balances, and log every manual change.
ChaChaCha, powered by AppsPOS, supports e-wallet and stored value, vouchers, points and stamps, staff permissions and reports. Our salon and spa POS page describes how we handle packages; ask us to confirm session-based packages for your menu. For a wider view of options, see our comparison of salon POS systems.
Staff incentives without pressure selling
Commission on package sales is common, and it is where pressure selling starts. In the DNA Brands case, the staff involved were barred from earning sales commissions after CCS began investigating. Build incentives that reward the right behaviour:
- Pay commission on sessions delivered, or split it between sale and redemption.
- Claw back commission on packages refunded within your cooling-off period.
- Train staff to accept “no” the first time, and never to discuss clients’ cards, savings or CPF.
- Take extra care with elderly clients and anyone who seems unsure.
Our guide to salon commission tracking covers the mechanics.
A checklist before you sell your next package
- Is the discount measured against a real, current price list?
- Are the terms written, signed and given to the client?
- Is there a voluntary cooling-off period, displayed at the counter?
- Do you know whether GST is due at sale or at redemption for this product?
- Can your POS show any client’s remaining balance in seconds?
- Would you be comfortable if CASE read your sales script?
If you want to see how package balances look on our system, talk to us.
