KUALA LUMPUR – The Domestic Trade and Cost of Living Ministry is reviewing existing e-commerce laws and will propose a suitable regulatory mechanism to protect the welfare of industry players and consumers.
Its deputy minister, Fuziah Salleh, said the laws are the Electronic Commerce Act 2006, the Consumer Protection Act 1999, and the Consumer Protection (Electronic Trade Transactions) Regulations 2012.
She said the ministry will work with e-commerce platform providers, industry players, consumer associations, and experts to further streamline the acts.
“There is currently no law regulating goods on e-commerce platforms, and there is no law requiring vendors on the platform to ensure that the goods they offer exist.
“Also, service providers cannot take action against the seller if a problem arises,” she told a press conference after officiating a seminar titled Today’s Malaysian E-Commerce and Consumer Protection Regulatory Framework: The Way Forward, here, today.
Fuziah said there are several challenges that consumers are currently facing as a result of the rapid growth of the e-commerce sector.
Among them, she said, were online purchases that were not delivered or did not meet the customer’s expectations, noncompliance with product safety standards, and the unethical use of “dark patterns” by online traders to mislead consumers.
“The ministry is receiving an increasing number of complaints, particularly those involving online transactions. As of August 31 this year, a total of 10,377 complaints had been received, with 35% of them involving online transactions.
“There have also been complaints about online traders selling essential items like rice, sugar, and packed cooking oil at prices higher than the control price,” she added.
Fuziah said that the e-commerce platform Shopee recorded the highest number of complaints, followed by Facebook and Instagram. – September 19, 2023