Effectiveness of CaseTrust Prepayment Protections and Update on Consumer Protection Review Panel

Mr Alex Yeo asked the Minister for Trade and Industry (Energy and Industry) (a) whether the Ministry has information on (i) what proportion of prepayment losses exceeding $1.9 million in the first half of 2026 arose from CaseTrust-accredited companies with prepayment protection, and (ii) whether CaseTrust-accreditation can be mandated for businesses offering high-value prepaid packages; and (b) for an update from the Consumer Protection Review Panel on its review of the existing protections for high-value package purchases.

Of the prepayment losses reported in the first half of 2026, 3% arose from CaseTrust-accredited businesses with prepayment protection. For these affected consumers, the Consumers Association of Singapore (CASE) has been working with the insurer to facilitate refunds for the unutilised portions of their prepaid packages.

CaseTrust is currently a voluntary accreditation scheme led by CASE to recognise businesses that commit to fair trading standards, including prepayment protection. Mandating this as a requirement for businesses offering high-value prepaid packages will impose additional costs that might be passed on to consumers.

The Government's approach thus far has been to educate consumers to help them make informed decisions and manage prepayment risks. For example, consumers can look out for and transact with CaseTrust-accredited businesses, which have measures in place to safeguard prepayments. Consumers are also encouraged to opt for progressive payments instead of lump-sum payments upfront, especially for large-value purchases.

The Consumer Protection Review Panel has been reviewing key consumer concerns, including the adequacy of prepayment protection. The Panel is expected to publish its findings and recommendations later this year.