Monday, October 12, 2009

applicability of the existing law to e-commerce: Consumer Protection Act 1999

Consumer Protection 1999 was enacted to protect consumers right in Malaysia. This act was enforced to protect consumers from unethical business transactions especially regarding buying and selling matters between dealers and consumers. So, does this act also governs online transactions or e-commerce?


Before this, Section 2 of this Act provides that the Act does not apply to any trade conducted by electronic means unless otherwise prescribed by the Minister. E-commerce activities are still new and have not yet developed further in Malaysia at the time the Act was enforced. Therefore, the provision in this Act does not specifically indicate whether the applicable activities includes activities of e-commerce in Malaysia. However, technology in Malaysia had developed and had led to changes because nowadays, consumers are more likely to make business transactions through online transactions or e-commerce as there are a lot of choices of goods and it is easy operated. There are various problems that arise through activities involving e-commerce transactions such as consumer fraud cases. For example, items ordered through certain websites does not reach the buyer although payment had been made via bank or post. Or the quality of the items that had been ordered does not achieve the standard like had been stated in the websites.

Furthermore, as according to Section 19 of the Act,manufacturers of products or goods must comply with safety standards stipulated in section 21 of the Act. Therefore, to conduct business transaction, the manufacturers and sellers must ensure that products that had been manufactured and sold are safe to be used by the consumers, If this Act clearly applies to electronic transactions, the provisions stated is relevant to consumers to take action against traders who had committed fraud to the consumer tribunal or court.

So, government had taken what can be considered as a wise action when this Act wad amended in August 1997, which the consumer is protected under this Act for transactions involving online matters. As according to Section 2 of the Act “Subject to subsection (2), this Act shall apply in respect of all goods and services that are offered or supplied to one or more consumers in trade including any trade transaction conducted through electronic means”.

Hence, it can be concluded here consumers who conduct online transactions or e-commerce are now protected under this Act.

You can refer to the Consumers Protection Act 1999 on the side bar.

30 comments:

nn said...

nice info. if not, business will rely on caveat emptor to cheat consumers.

Anonymous said...

Hai just to confirm..the amendment to the Consumer Protection Act is in 2007 right?Tq.

digital certificate said...

Many people are not aware of the fact that according to Section 19 of the Act,manufacturers of products or goods must comply with safety standards stipulated in section 21 of the Act. Therefore, to conduct business transaction, the manufacturers and sellers must ensure that products that had been manufactured and sold are safe to be used by the consumers.Even they never complain if they meet some accident due to missing information on product

Jeffry said...

Good info. What if seller or manufacturer stated in their policy "Non refundable" to goods delivered or sold, does this still fall in Consumer Protection Act?

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