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    Some spas in very shaky financial shape: CASE

    Don't buy a treatment package unless the service provider insures your pre-payment as some spas are in bad financial shape.

    That was the message of the Consumers Association of Singapore (CASE) on Monday, when it announced that 57 out of 178 CaseTrust accredited spas had put in place insurance facilities to protect consumers' pre-payments.

    In implementing the CaseTrust spa protection scheme, which kicked in on 1 October, CASE said in a statement that it discovered that some spas collecting pre-payments from consumers  are in "very shaky financial positions and are also engaging in questionable financial practices".

    It said one spa service provider was operating at an expected annual loss of nearly $1 million, and yet its directors were borrowing $1.6 million from the company for personal use.

    "Consumers being unaware of the company's actual financial health and practices may be exposing themselves to a greater risk of having their pre-payments forfeited by patronising such spas that have a greater possibility to fold up," it said.

    With a spa protection scheme in place, consumers are assured a refund of the unutilised portion of their pre-payments, including pre-paid packages, in the event of the spa's closure.

    To be sure they are protected, patrons should get a certificate of insurance for every pre-payment, CASE advised.

    The agency also disclosed that 66 CaseTrust accredited spas have declared they do not sell pre-paid packages, and that 55 accredited spas are working closely with protection scheme providers to meet the protection scheme requirements of the CaseTrust for the Spa and Wellness Businesses accreditation scheme.

    Moreover, six non-accredited spas with insurance facilities in place are applying to be accredited with CaseTrust.

    Consumers can refer to the CaseTrust website at www.casetrust.org.sg for the lists of spas with the spa protection scheme in place and the list of spas that have declared non-selling of pre-paid packages.

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    55 comments

    • A Yahoo! User  •  6 months ago
      MOST Spas in Singapore are foreign owners in one way or another.
      This is true. NOT intended to critizie foreigns.
      Check it out.
      It is a "get rich quick" scheme. You pay them in advance to do business.
      So, they do business without much capital. If make it, they continue, if
      fail, they wraped up and go. Capital taken from you in advance.
      In fact, CASE should STOP this MALpractice.
    • goh  •  6 months ago
      I never like to sign up package price for spa nor facial treatment. I become wary especially if the salon is too pushy and aggressive. I do not mind to pay slightly more for each treatment rather than to be tied down.
      • Since Here Lee 5 months ago
        You don't need to be tied down.

        They'll make you lie down. Like it or not, you're down.

        Out!

        Service is over and done. Out!
    • Kutty Kutty  •  6 months ago
      BE CAREFUL OF ASIAN SKIN SOLUTION, NOT GENUINE IN GIVING GOOD QUALITY SERVICE. THE STAFF IS ONLY INTERESTED TO PESTER CUSTOMERS TO UPGRADE!!!
      • S Caenaro 6 months ago
        They have false advertsing too. I once responded to a $30 trial facial, when I turn up for my appointment , a "consultant" pestered me to sign up for $5000 package. When I made it clear that I will not sign up if I have not tried their service, she lowered to $3000 package. Almost an hour later and realising that I would not barge, she claimed that the $30 facial is not suitable for my skin type and claimed that if I wanted to really see any difference I should pay $180. I was so pissed I left without going thru the facial.
      • Mr handsome 6 months ago
        this is not the only one. London is also one of them. worse still is they dont allow pple to refund or cancel when patrons sign up for their slimming package. they are money sucker. they make sure their patron pay up to thousand. when u look at those advertisement from london, esp those already can see their good results. this show that they have spend many thousands of dollars in their slimming package.not only that. some skin centre,
    • Mark  •  6 months ago
      This is not the only industry we have to be careful, others too. Last week I responded to a TV program - SMS. Bad encounter I had after visiting the Beauty center. A promotion for $X for Y no. of sessions. Unfortunately the promise cannot be fullfilled unless I take up a cleansing session which cost $160 (at a promotional price) and subsequent 5 more sessions at a cost of $1600(less $160). The $X for Y no. of sessions will only be given after I complete the 6 cleansing sessions. When I refused to take up the program, I was confronted with the signature which I had signed on a Question-air with small print. Of course I walked out but they never let me off cos my handphone continues to ring for the next hour. Think this is a rip off so be careful too.
      • Rod Star 6 months ago
        I feel sorry for you. This must be the "Beauty Sense" which was hosted by Eunice Olsen on every weekend. I have watched the show and I thought these pple are professionals. Eunice being the host should look into this complaint and not allow these pple to lead others into believing that the $10 for 2 sessions is a good bargain.
      • Frankie 5 months ago
        You have my sympathy. If they continue to harass you over the phone, I suggest that you tell them that if they do not stop, you will complain to the police and also write to the media.
      • Since Here Lee 5 months ago
        Eunice Olsen was OUR MP.
        Dun spew nonsense like that.
        She'd never do a thing like that.
        Got Unflinching Integrity one,
        you know ... ...
    • Mr handsome  •  6 months ago
      maybe we can start a blog to share which spa is in a bad shape.
    • g  •  6 months ago
      Why not CASE have all these companies published on their site and also companies with bad reputation etc so people can take precautions and being pro-active about it rather than filing a case with CASE and waste everybody's time. Don't understand why Singaporeans are always so reactive.
      • Mr handsome 6 months ago
        those company with bad fiancial need to survive ma. if advertisement, u are killing them away and more pple will be jobless. when case give warning to patron. It is good enough already. afterall, patron has to be careful before making any payment. the best way is when signing for any package. the first question is to ask
        how am i going to take back this money if i want to cancel or refund. if a company dont allow patron to refund or cancel. then is better not to buy any package, this can prevent alot of dispute in the future.
      • Frankie 5 months ago
        The simple warning that people should always remember: CAVEAT EMPTOR (buyers beware). Sad to say, people are always swayed by advertisements.
    • goh  •  6 months ago
      Once you make a payment for a package, most business vendors will not care so much whether you complete the number of sessions or not.
    • Deano  •  6 months ago
      just hop on a budget airline to Thailand and get a nice foot massage for 10 bucks! And you can do some sightseeing. It probably works out cheaper and it's much less stressful than worrying about your money going down the drain...
    • law65lee  •  6 months ago
      to me, any spa operating on a system of pre-payment is not worth partronizing because why on earth would one want to depart their hard-earned money in advance for a service to be administered at a later date. You will be gulliable if you think that the standard ofservice given later on is of high standard or that at worst you may not receive the service at all due to the spa fnancial problems. In effect, these spa operators who have financial problems are usually the ones who never keep their part of the bargain and nine out of ten cases, they spend away money collected NOW and then slowly dispense their services or would they? For those customers who have lost significant amount of their money due to unfortunate financial arrangements for services, like this type, they really have to wake up in the way they spend their money though they may have plenty to spare.
    • forty  •  6 months ago
      in '95 i signed up for a $800 car-polishing "package", cpmy "closed" soon after. in '98 i signed up for one $500 video-rental "package", cmpy also "closed" after 3 months. i hv learnt my lesson. hope ppl wl wake up soon enough.
    • Jane  •  6 months ago
      Not only SPA ...renovation industry also not controlled! I paid alot of money for contractor to start renovation, he carried out alot of illegal hacking, removed all my old air-cons and sold them off and then totally disappeared and was uncontactable!

      I reported to police but police said the contractor DID NOT BREAK THE LAW, he asked me to sue him MYSELF, which in other words, the POLICE ask me to SPEND another tens of thousands of dollars (after losing tens of thousands of dolloars) to seek justice for myself! If I am as RICH as LKY, I can sue anybody I LIKE until they got POK, but I am only a little fry with no extra CASH!

      When NTUC got conned by scammers...police took action almost so quickly that they nabbed 2 fellas BUT when the average singaporean gets conned....CASE steps up to speak as if it was totally our fault that we got conned because we never checked up on the companies we pay to....

      GO CHECK our LEGAL website...which tells us somthing like not to pay out large sums of money without seeing or getting the product first! LET me ask anyone out there....is there any reno that do not require you to pay a deposit FIRST???

      DIRECTORS borrowing from the company??? Is that legal?
    • DT  •  6 months ago
      Best is dun buy package, when u feel like going for spa just walk in, no worries of spa shop closed and $ is stuck
    • AP  •  5 months ago
      when u see a spa or a hair salon with fewer and fewer customers, their branches slowly winding up and the staff keep urging u to take up expensive packages, say no and leave.
    • Lydia  •  6 months ago
      seriously and these spas keeping doing the hard sell. I hate it, stopped going to such places already. not point wasting money. Kudos to CASE for highlighting such issues to the public.
    • Justine  •  6 months ago
      one of the best self-control habits of a consumer is not to commit too much in beauty packages. I usually limit to not more than $1500 and make sure i use the package on a regular basis to use up my credits with the salon before it shuts down for good. Nobody knows how long a business will last. so far I've never had problems with the salons i frequent. I once went to a trial at B**skin and was told to sign a package at $4000 for facial. ridiculous package. consumers ourselves must act smart too.
    • Karl  •  6 months ago
      Only a handful of those Spas are genuine but for the rest, they are more interested in selling their packages to you and most of the time, after you signed the package and start booking your appointment, thats where you would face hell . . . . . my first appointment booking took almost 3 months to get my first treatment with a certain spa. My second experience is almost similar to the first one, it took me more than 5 weeks to get my appointment fixed, and worst, during my first appointment instead of giving me a good treatment, we, my wife and me were so irritated by the so called spa adviser to do a conversion and take up another higher packages, this is absured!
    • mutucurry  •  6 months ago
      To some irresponsible company owners, their private limited companies are treated like personal ATMs. Surreptitipos transfer of company fund are very common and unless one is a director of the company concerned nothing can be down even if it is brought to the attention of the relevant authorities.
      There must be an avenue under the law for whistle blower to alert the authorities to such wrong activities.
    • Mary  •  6 months ago
      I bought a Jamu body massage package at Turf City. When I called to book for 2nd appt...number not available. So I went there personally and found the company no longer there, and no where to be contacted. At the same place I also got the pedi-manicure. The company expanded and decided to go to TanjongPagar. The one at TurfCity, they sold or hand over to another company, I got no idea about their business transactions. But according to them, I can still continue at the new company at TurfCity, because for me it's nearby. But each time I go there the shop is close. Eventually that company also disappeared.
    • SGGuard  •  6 months ago
      Most spas & beauty salons are using future monies through the sales of their pre-paid packages. Some may declared that they dun sell pre-paid packages but who is going to check? If you do a simple calculation of their package offer, it is a money losing deals for them but the plus point is that they got a lump sum of money to "jiam si tong" so as to fight another day.
    • LSI Wellness  •  6 months ago
      Actually are those being accredited are losing big money, cos they are restrict by many rule.

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