Thursday, October 1, 2009

applicability of the existing law to e-commerce:Direct Sales Act 1993

However, transactions through the Internet has a connection with the sale of this type because sale or purchase of goods via the Internet are typically orders through electronic through the website.

Offences for false advertising in  goods is provided in Direct Sales Act 1993. Ads in this Act defined as any form of advertising (whether oral, written or sound) issued or displayed through notices, label cards, documents, film cinematography, pictures, photos, television or through any way.

Is provided in section 20 (1) Act 1993 that any vendor who provides goods or services through service mail order and at the same time advertise goods or services, the ad shall contain details as provided in the Act.

The main question is that whether DSA 1993 applies to e-commerce transactions? Do direct sales via the Internet are covered by AJL 1993? The question is very relevant to be asked for as e-commerce transactions is now well developed but the law protect consumers doing business on the Internet is still not specifically allocated and
clearly stated in Malaysia.

Hence we must also refer to DSA 1993. The question whether the Act applies to e-commerce on the Internet depends on the purpose or definition of 'direct sales' under the Act. According to the definitions and provisions DSA 1993, in general there are two forms of direct sales covered by the Act, namely: first, sales from house to another house and second, sales through mail order.

It is obviously that the first category does not apply to transactions via the Internet. Hence we must look to the second category which is sales through mail order.

Do sales through mail order sales equal to orders via the Internet? It is clear that sales of this type refer to any orders which are made either electronically or otherwise, and goods in respect sent by post. DSA 1993 does not provide any explanation about the characteristics of sales postal shipments.

However, transactions through the Internet can be said as has a connection with the sale of this type of transactions because sale or purchase of goods via the Internet are typically orders through electronic and usually through the website. The postal of goods ordered will be made whether in postal way or personal delivery. Hence, mail order as illustrated in DSA 1993 is relevant to the transaction via the Internet.

It cannot be denied that when the Act was first introduced, e-commerce is not yet developed as they do now. But, nowadays we can see Internet can be said as wee-developed and a lot e-commerce activities were conducted through the Internet. Although the application of e-commerce in Malaysia is still not really developed like other developed countries, but it is conducted in a good way in some activities, for example, in e-banking, purchasing reading materials, computer software or purchasing plane tickets.

In other words, it can be stated here that DSA 1993 also includes e-commerce activities. Although that, e-commerce activities can be said as more complicated that the activities stated in the DSA 1993.

You may refer to the Direct Sales Act 1993 on the sidebar.

2 comments:

pdf digital signature said...

As you mentioned here that according to section 20 (1) Act 1993 that any vendor who provides goods or services through service mail order and at the same time advertise goods or services, the ad shall contain details as provided in the Act.Many people are unaware of this act or just ignore it

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