High number of complaints on online shopping issues

SHAH ALAM – Complaints related to online purchase fraud, including claims for compensation and weaknesses in consumer protection, such as products reaching the expiry date or counterfeit items, remain the highest complaints received since 2018.

Federation of Malaysians Consumers Associations (Fomca) chief operating officer Nur Asyikin Aminuddin said other frequent complaints included consumers not receiving the items they ordered and issues with the Buy Now, Pay Later (BNPL) mechanism, where bank payments failed to be recorded in e-wallets, leaving consumers caught between the bank and e-commerce platforms.

"Besides that, there have been cases where the BNPL installment period was allegedly changed without the consumer’s consent, causing them to be in debt for a longer period than initially chosen. False advertising of out-of-stock products is also an issue, as consumers struggle to get refunds.

"Many consumers face difficulties in claiming compensation because sellers or e-commerce platforms refuse to take responsibility, making this issue remain unresolved," she told Sinar.

She shared that most complaints from consumers are submitted through Fomca’s complaints centre, the National Consumer Complaints Centre (NCCC).

Asyikin said many consumers were still unaware that they had the right to claim compensation if they encountered problems with their online purchases.

Commenting on BNPL purchases, she expressed concern over this increasingly popular trend, which could trap consumers in uncontrolled debt.

"BNPL has both advantages and disadvantages. For example, daily costs are rising and some essential items, like refrigerators are truly needed. There is nothing wrong with purchasing them.

"But the downside is when people use BNPL for expensive luxury items due to the fear of missing out (fomo).

"When fomo kicks in, people tend to use BNPL. So, I strongly advise against using it when not necessary.The main concern now is late payment fees.

"If consumers are disciplined and make payments on time, there should be no problem. But if they delay payments, it becomes worrying. So, it's best to avoid BNPL entirely, especially for young people who often fall into the fomo trap," she said.

She also emphasised the increasing fraud risks in cash transactions, particularly when using cash on delivery (COD) services.

She said there have been cases where scammers posed as the delivery person and requested COD payments, even though the actual item has yet to be delivered.

Therefore, she stressed the need for stronger consumer protection through stricter monitoring mechanisms and tighter regulations on merchants and online sales platforms.

Previously, it was reported that 70.6 per cent of Malaysia's population participated in online shopping for goods and services in 2023.

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said this percentage increased by 0.2 per cent compared to the previous year (70.4 per cent in 2022) and 64.7 per cent in 2021.

He noted that these statistics were measured through the Survey on the Usage and Access of ICT by Individuals and Households (ICTHS) conducted by the Department of Statistics Malaysia.