Professional Documents
Culture Documents
Introduction
Generally, a consumer is a person who consumes a product or service. Consumers can be
either an individual or a group of people who purchase and use goods and services solely for
personal use and not for manufacturing or resale. In Malaysia, according to the Consumer
Protection Act 1999, “consumer” refers to a person who acquires or uses the goods or services
of a kind ordinarily acquired for personal, domestic, or household purpose, use or consumption
and does not include a person that acquires or uses the same, or holds himself out as acquiring
or using the goods or services, primarily for the purposes of:
a. resupplying them in trade.
b. consuming them during a manufacturing process, or
c. in the case of goods, repairing or treating, in trade, other goods or fixtures on land.
The CPA, 1999 provides rights for consumers' protection. It deals with consumer protection
related matters. As a consumer any person has the right to receive fair judgement which includes
compensation for his purchase of goods or services received which had a misleading trade
description, was of poor quality or if he receives unsatisfactory services.
Overview of Consumer Protection Rights:
In Malaysia, consumer protection rights are regulated through different types of laws that
safeguard the interests of consumers and fair practices of trade or commercial activities. An
overview of consumer protection rights in the market of Malaysia is given below:
Consumer Protection Act, 1999: This Act provides protection for the consumers. Besides it gives
rights to the consumers such as product safety, compensation for product of worst quality and
so on.
Liability for Product: The CPA,1999 hold the manufacturers, importers, sellers, liable for any
false or counterfeit products that causes harm to the consumers. Consumers have the right to
seek remedies for the damages from the fake products.
Price Control and Anti-Profiteering Act,2011: The main objective of this Act is to control price
rising and profiteering by business during emergencies, shortages, and any other circumstances
that affect the supply of goods or services. It empowers the govt. to control the prices in the
market and unfair practices of prices.
Sales of Goods Act, 1757: This Act provides protection for consumers in transactions of goods
and regulates the contract for sales of goods. It provides remedies for the breach of contract.
Regulations from 2012 on Consumers Protection (Electronic Trade Transactions):
Consumers who transact in electronic commerce are protected by these regulations.
They address topics including information disclosure, online purchase refund policies, payment
system security, and dispute resolution procedures for online transactions.
Regulations from 2010 on Consumer Protection (Credit Sales):
These laws safeguard customers who buy products or services on credit.
They demand full disclosure of all terms and conditions, such as interest rates, fees, and repay
ment plans.
Customers have a right to truthful information and defense against deceptive credit practices.
It's critical for Malaysian consumers to understand their rights and take the required actions to assert th
em. They can complain to the appropriate authorities or, if required, seek legal counsel
• Right to Choose:
Consumers have the right to choose from a variety of goods and services at competitive
prices, without any unfair restrictions or discriminatory practices.
• Right to Representation:
Consumers have the right to form or join consumer organizations and have their interests
represented in decision making processes that affect them.
• Right to Redress:
Consumers have the right to seek compensation, a refund, repair or replacement for
goods and services that are defective or do not meet the agreed upon standards.
• Right to Education:
Consumers have the right to education and awareness about their rights and
responsibilities as well as how to make informed choices and protect themselves from
unfair practices.
• Right to Consumer Protection Agencies:
Consumers have the right to access government agencies or bodies that protect their
interests, such as the Ministry of Domestic trade and Consumer Affairs and the Consumer
Claims Tribunal.
But there is other several other specific rights that consumers have in the Malaysian
market. The following rights are:
• Right to Fair Contract Terms:
Consumers have the right to fair contract terms that are clear, transparent and void of
unfair clauses or hidden charges. Terms that are deemed oppressive or unfair can be
challenged in court.
• Right to Cooling off period:
Consumers have the right to a cooling off period for certain types of contracts, such as
selling or online purchases. This allows consumers to cancel the contract within a
specified period without penalty.
Other Relevant Regulations and Bodies Responsible for Consumer Protection in Malaysia:
Consumer Claims Tribunal:
The Consumer Claims Tribunal provides a simple and inexpensive avenue for consumers to
resolve disputes with traders. It has the authority to hear claims involving monetary amounts up
to a specified limit and can order remedies such as refunds or replacements.
Competition Commission of Malaysia (MyCC): The MyCC is the regulatory body responsible for
enforcing the Competition Act 2010. While its primary focus is on promoting fair competition, it
also plays a role in protecting consumer interests by prohibiting anti-competitive practices such
as price-fixing, abuse of dominance, and misleading advertising.
Ministry of Domestic Trade and Consumer Affairs (KPDNHEP): The KPDNHEP is the government
ministry responsible for overseeing consumer protection in Malaysia. It formulates policies,
enforces consumer protection laws, and regulates various aspects of consumer transactions,
including price control, product safety, and fair-trade practices.
Standards and Industrial Research Institute of Malaysia (SIRIM): SIRIM is an organization that
establishes and promotes standards for products and services in Malaysia. It plays a role in
ensuring product safety and quality through the development and implementation of standards,
certification programs, and conformity assessments.
Financial Ombudsman Scheme (FOS): The FOS provides an avenue for consumers to seek redress
for complaints against financial service providers, including banks, insurance companies, and
financial advisory firms. It offers an independent and impartial dispute resolution process for
eligible cases.
Communications and Multimedia Consumer Forum of Malaysia (CFM): The CFM is a forum
established to protect consumer rights in the communications and multimedia industry. It
handles consumer complaints related to telecommunications services, Internet services, and
broadcasting, and works to ensure fair and transparent practices in the industry.
Consumer Agencies and Organizations in Malaysia
Consumer protection is a crucial aspect of any thriving economy, and Malaysia recognizes the
importance of safeguarding the rights and welfare of its consumers. Several agencies and
organizations in Malaysia are dedicated to promoting fair trade practices, conscious consumers
about their rights, and aiding in resolving consumer disputes.
Ministry of Domestic Trade and Consumer Affairs:
The Ministry of Domestic Trade and Consumer Affairs (MDTCA) is the government agency
responsible for overseeing consumer protection and promoting fair trade practices in Malaysia.
The ministry plays a crucial role in formulating policies and implementing regulations to
safeguard the interests of consumers across the country. Its primary objective is to ensure a
conducive environment for consumers by monitoring and regulating market activities, enforcing
consumer laws, and resolving consumer disputes.
Consumer Protection Society Malaysia (CPSM):
The Consumer Protection Society Malaysia (CPSM) is a non-governmental organization (NGO)
dedicated to protecting the rights and welfare of consumers. CPSM acts as a voice for consumers,
advocating for their interests and working towards the establishment of fair-trade practices. The
organization provides education and awareness programs to inform consumers about their rights
and responsibilities. CPSM also helps in resolving consumer complaints and provides legal
support when necessary.
Federation of Malaysian Consumer Association (FOMCA):
The Federation of Malaysian Consumer Association (FOMCA) is an umbrella organization
representing various consumer associations and groups in Malaysia. FOMCA aims to promote
and protect consumer rights by engaging in advocacy, research, and public education. The
organization works closely with the government and other stakeholders to develop policies and
regulations that benefit consumers. FOMCA also provides a platform for consumer associations
to collaborate and exchange ideas, strengthening the consumer movement in Malaysia.
Role and Functions of These Organizations in Protecting Consumer Rights:
The Ministry of Domestic Trade and Consumer Affairs plays a pivotal role in protecting consumer
rights through its regulatory and enforcement functions. It ensures that businesses adhere to fair
trade practices, investigates consumer complaints, and takes necessary action against deceptive
or unfair business activities. The ministry also conducts market surveillance to prevent the sale
of counterfeit or substandard products, ensuring consumer safety.
Consumer Protection Society Malaysia (CPSM) contributes to the protection of consumer rights
by actively raising awareness among consumers. Through educational programs, CPSM
empowers consumers to make informed choices and assert their rights. The organization also
provides a platform for consumers to seek assistance and redress in case of disputes with
businesses. CPSM's legal support helps consumers navigate complex legal processes and seek
compensation for any harm caused.
The Federation of Malaysian Consumer Association (FOMCA) plays a crucial role in advocating
for consumer rights at the national level. By conducting research and surveys, FOMCA gathers
data on consumer issues and uses this information to influence policymaking. The organization
collaborates with the government, industry players, and other stakeholders to develop and
enforce consumer-friendly regulations. FOMCA's efforts ensure that consumer concerns are
addressed, and consumer rights are protected effectively.
Consumer agencies and organizations in Malaysia provide platforms for consumers to voice their
concerns and seek assistance in resolving disputes. They offer guidance, advice, and legal support
to consumers who have been subjected to fraudulent or deceptive practices. By mediating
between consumers and businesses, these organizations aim to foster amicable resolutions and
ensure that consumers receive fair compensation for any harm suffered.
These organizations engage in research and surveys to gather data on consumer issues and
market trends. This information helps shape policies, regulations, and industry standards that
align with the needs and interests of consumers. Through collaboration with the government,
industry holders, and other stakeholders, consumer agencies and organizations work towards
establishing a comprehensive framework that protects consumer rights effectively.
Comparative Analysis of Consumer Protection Laws in Malaysia and
Other Countries
◼ Malaysia Vs. United States
United States is one of the most advanced countries across the world. It not only works on
developing technologies and structures but also in building a strong law for the citizens of the
country. Laws made by the state help the citizen to live a peaceful life. Consumers protection, in
that sense, helps the citizen to be aware of their right while purchasing any product or service.
Certainly, there are consumers’ right protection acts in almost every country. But for the purpose
of this assignment, we are here to compare the laws of consumer protection between Malaysia
and USA.
The comparative differences are given below: -
Differences
1. Approach to Legislation: The United States has a decentralized approach, with consumer
protection laws enforced at both the federal and state levels. Each state has the autonomy to
enact its own consumer protection laws. In contrast, Malaysia has a centralized approach with a
primary federal legislation, the Consumer Protection Act 1999, governing consumer protection
throughout the country.
2. Scope and Coverage: While both countries have laws covering various aspects of consumer
protection, there may be differences in the specific areas addressed. In the United States,
consumer protection laws cover a wide range of areas including unfair or deceptive practices,
product safety, advertising, telemarketing, online commerce, and financial services. The
Malaysian Consumer Protection Act addresses unfair practices, product safety, misleading
advertising, warranties, and dispute resolution.
3. Enforcement Structure: In the United States, federal consumer protection laws are enforced
by the Federal Trade Commission (FTC), while state consumer protection agencies and attorneys
general oversee enforcement at the state level. In Malaysia, the enforcement of consumer
protection laws is overseen by the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP)
through its enforcement agencies.
4. Remedies Available: The available remedies for consumers may differ between the two
countries. In the United States, remedies can include compensation, refunds, product recalls,
injunctions against unfair practices, and civil penalties for violators. In Malaysia, consumers have
various remedies available, such as compensation, refunds, replacement of goods, and
cancellation of contracts.
5. Legal Framework and Jurisdiction: The United States operates under a common law legal
system, while Malaysia has a mixed legal system that incorporates elements of common law,
Islamic law, and customary law. This distinction can influence the interpretation and application
of consumer protection laws in each jurisdiction.
◼ Malaysia Vs. UK
UK or The United Kingdom does have consumer protection legislation. The primary legislation
that governs consumer protection in the UK is the Consumer Rights Act 2015. This Act replaced
several earlier pieces of consumer protection legislation and consolidated various consumer
rights into a single law.
There are differences between the consumer laws of the United Kingdom (UK) and Malaysia.
While both countries have legislation in place to protect consumer rights, there are variations in
the specific laws and regulations.
Key-point UK Malaysia
Legislation Consumers Right Act, 2015 Consumer Protection Act,
1999
Scope Wide range of consumer rights, Broad coverage including
including goods, services, and unfair practices, product
more. safety etc.
Enforcement Competition and Markets Ministry of Domestic Trade
Agencies Authority (CMA)0, Trading and Consumer Affairs
Standards Services. (KPDNHEP)
Contractual Terms Focus on unfair contract terms Addressing unfair practices
and guidelines for assessing and may cover contractual
fairness. terms.
Jurisdiction and Common law legal system. Mixed legal system
System incorporating common,
Islamic, and customary
law.
Similarities
1. Consumer Rights: Both the UK and Malaysia have laws that recognize fundamental consumer
rights. These rights typically include the right to safety, the right to be informed, the right to
choose, the right to be heard, and the right to redress.
2. Product Safety: Both countries have regulations governing product safety standards. These
regulations often require manufacturers and sellers to ensure that their products meet certain
safety requirements and to provide accurate information about potential risks associated with
the use of their products.
3. Misleading and Deceptive Practices: Both the UK and Malaysia have laws prohibiting
misleading and deceptive practices in advertising and marketing. These laws aim to prevent
businesses from making false claims, providing inaccurate information, or using deceptive tactics
to manipulate consumers.
4. Consumer Contracts: Both countries have regulations regarding consumer contracts. These
regulations may include provisions related to unfair contract terms, transparency in contract
terms and conditions, and the right to cancel or withdraw from a contract within a specified
period.
5. Consumer Redress: Both the UK and Malaysia have mechanisms in place to provide
consumers with avenues for redress in case of disputes with businesses. These mechanisms may
include mediation, arbitration, or access to specialized consumer courts or tribunals.
Differences
1. Legal Framework: The UK has a comprehensive legal framework for consumer protection,
primarily governed by the Consumer Rights Act 2015 and other relevant legislation. Malaysia, on
the other hand, has its own set of laws, including the Consumer Protection Act 1999 and the Sale
of Goods Act 1957, which form the basis of consumer protection regulations.
2. Consumer Agencies: In the UK, there are several dedicated agencies responsible for consumer
protection, such as the Competition and Markets Authority (CMA) and the Office of Fair Trading
(OFT). These agencies enforce consumer protection laws and regulate markets to ensure fair
competition. In Malaysia, consumer protection is overseen by the Ministry of Domestic Trade
and Consumer Affairs, which is responsible for enforcing consumer protection laws and
promoting fair trade practices.
3. Product Liability: The UK has specific regulations regarding product liability, imposing strict
liability on manufacturers, distributors, and retailers for defective products. In Malaysia, product
liability laws are less developed, and liability is generally determined based on negligence or
breach of contract principles.
4. Consumer Remedies: The UK provides consumers with a wide range of remedies, including
the right to reject faulty goods, request repairs or replacements, and claim compensation for
damages. In Malaysia, consumer remedies may vary, and the focus is often on repair or
replacement rather than refunds or compensation.
5. Dispute Resolution Mechanisms: In the UK, consumers have access to alternative dispute
resolution (ADR) schemes, such as ombudsman services and online dispute resolution platforms,
to resolve disputes with businesses without going to court. Malaysia also promotes ADR, but the
availability and effectiveness of such mechanisms may vary.
6. Consumer Education and Awareness: The UK places significant emphasis on consumer
education and awareness campaigns, empowering consumers to make informed choices.
Malaysia also promotes consumer education, but there may be variations in the reach and
effectiveness of awareness initiatives.
Consumer Complaints:
After subscribing to the advertised packages, numerous customers began experiencing slow
internet speeds and noticed limitations on their data usage. Dissatisfied with the service, they
lodged complaints with the Ministry of Domestic Trade and Consumer Affairs, alleging that the
telecommunications company had engaged in misleading advertising.
The Ministry initiated an investigation to assess the validity of the consumer complaints. They
scrutinized the advertising materials, terms and conditions, and customer testimonials
associated with the telecommunications company's promotional campaign. Additionally, they
collected evidence from affected customers, such as speed test results and data usage records.
The investigation revealed that the telecommunications company had indeed engaged in
misleading advertising. It was discovered that the high-speed internet speeds were not
consistently delivered to customers as promised. Furthermore, there were undisclosed
restrictions on data usage, such as data throttling or reduced speeds after a certain threshold.
Government Intervention and Penalties:
Based on the findings, the Ministry of Domestic Trade and Consumer Affairs took swift action to
protect consumers and uphold fair business practices. They imposed a substantial fine on the
telecommunications company for violating consumer protection regulations and engaging in
deceptive advertising.
In addition to the fine, the telecommunications company was required to compensate affected
customers for the discrepancies between the advertised services and the actual services
provided. The compensation aimed to reimburse customers for the subpar internet speeds and
data limitations they experienced.
Moreover, the Ministry mandated that the telecommunications company take immediate
corrective measures to rectify the issue. They required the company to revise their advertising
materials to provide accurate and transparent information about internet speeds and any
limitations on data usage. Additionally, the company was instructed to improve its service
infrastructure to ensure consistent and reliable high-speed internet access for its customers.
To prevent similar issues from arising in the future, the Ministry initiated awareness campaigns
to educate consumers about their rights and how to identify misleading advertising practices.
They emphasized the importance of scrutinizing claims made by companies and encouraged
consumers to report any suspected cases of misleading advertising promptly.
Conclusion: