KPDN reviewing laws on e-commerce to protect welfare of industry players, consumers

KUALA LUMPUR - The Ministry of Domestic Trade and Cost of Living (KPDN) is reviewing the existing e-commerce laws and will propose a suitable regulatory mechanism to ensure the welfare of industry players and consumers is protected.

Its deputy minister Fuziah Salleh said the laws were the Electronic Commerce Act 2006, the Consumer Protection Act 1999 and the Consumer Protection (Electronic Trade Transactions) Regulations 2012.

She said KPDN would 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 that there are several challenges that consumers are currently facing as a result of the fast growth of the e-commerce sector.

She said among them were goods purchased online that were not delivered or did not meet the customer’s requirements, non-compliance with product safety standards, and the unethical use of "dark patterns" by online traders to mislead consumers.

"KPDN is receiving an increasing number of complaints, particularly those involving online transactions. As of Aug 31 this year, a total of 10,377 complaints had been received, with 35 per cent of them involving online transactions.

"There are also complaints regarding online traders who sell essential items such as rice, sugar and packed cooking oil at a higher price than the control price,” she said.

Fuziah said that the e-commerce platform Shopee recorded the highest complaints, followed by Facebook and Instagram. - BERNAMA