Ringfencing advance payments by consumers could see businesses pass on higher costs to customers

ALTHOUGH recent abrupt closures of gyms and fitness studios have caused customers to lose prepaid amounts, protecting such upfront payments by law would simply drive up operating costs, lawyers told The Business Times.

Earlier in September, Kyklos Studio and its affiliated brand X Fitness allegedly closed down overnight – with the owner becoming uncontactable – and left several users unable to gain refunds for spin and yoga packages ranging from S$200 to S$600.

Since 2019, the Consumers Association of Singapore (Case) has received at least 23 complaints due to the “sudden” closures of 14 gyms and fitness centres, involving more than S$16,000 in contract value, said Case president Melvin Yong.