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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.

Consumer Claims Tribunal:


The Consumer Claims Tribunal gives customers a place to file minor claim lawsuits and seek relief.
It provides a straightforward, affordable, and quick mechanism for addressing customer concerns witho
ut the need for legal counsel.

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

Importance of Consumer Protection in the Malaysian Market:


Consumer protection is necessary in in any market as well as Malaysia. It plays an important role
in practicing fair business, developing consumers' confidence and so on. There are many
important views of consumer protection that are given below:

• It protects the consumers’ rights in the market.


• It gives protection against false products.
• It prevents unfair business practices.
• It Informs the consumers about any kind of products.
• It resolves consumer’s complaints and disputes.
• It maintains economic growth and stability.
After all, consumer protection is very essential in the market of Malaysia to prevent the damages
to their rights and to safeguard them. Besides, it' very important to maintain a fair and
competitive business in the marketplace.
Purposes of the Assignment: Every activity has its own purpose. Similarly, this assignment has
also some purposes that are given below:
1. To inform the consumers about their rights
2. To prevent the unfair practices of business that harm to the rights of consumers
3. To protect the consumers' rights
4. To teach the consumers how to identify any false product or service.
5. To make aware the consumers how they can be alert about the violation of their
rights.
CONSUMER RIGHTS IN THE MALAYSIAN MARKET
In Malaysia, the consumer rights are applicable or restricted by the provisions of
Consumer Protection Rights,1999. These are known as fundamental rights which is
observed by Malaysian market. Here are the following rights:
• Right to Safety:
Consumers have the right to be protected from goods and services that may be hazardous
to their health or safety.
• Right to Information:
Consumers have the right to accurate and truthful information about the goods and
services they purchase, including the price, composition, method of manufacture and
potential risks.

• 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.

• Right to Privacy Data Protection:


Consumers have the right to privacy and protection of their personal data. Companies
must adhere to laws and regulations regarding the collection, usage and disclosure of
consumer data.
• Right to Product Liability:
Consumers have the right to hold manufacturers, suppliers, and sellers accountable for
defective products that cause harm or damage. They can seek compensation for injuries,
losses, or damages resulting from such products.
• Right to Unfair Practices Protection:
Consumers are protected from unfair practices such as misleading advertisements,
deceptive pricing, false claims, and bait and switch tactics. Companies engaging in such
practices can face legal action.
• Right to Product Warranties:
Consumers have the right product warranties, which guarantee that goods will meet
certain standards and be free from defects within a specified period. Warranty claims and
repairs must be honored by the manufacturer or supplier.

Overview of key Consumer Protection Laws in Malaysia


Consumer Protection Act 1999 (CPA):
The CPA is the primary legislation governing consumer protection in Malaysia. It aims to protect
consumers from unfair trade practices and provides remedies for consumers who have been
subjected to such practices.
Sale of Goods Act 1957:
This act establishes the rights and obligations of buyers and sellers in the sale of goods. It covers
issues such as the implied terms of quality and fitness for purpose, the right to reject faulty goods,
and the right to claim damages or a refund.
Consumer Protection (Electronic Trade Transactions) Regulations 2012:
These regulations govern consumer protection in electronic commerce transactions, including
online purchases. They outline requirements for online retailers, such as providing clear
information about products, prices, and terms and conditions, as well as protecting consumers'
personal data.
Consumer Protection (Amendment) Act 2010:
This amendment introduced provisions to protect consumers in relation to unfair contract terms.
It empowers consumers to challenge unfair terms in standard form contracts that may be
oppressive or disadvantageous to them.
Price Control and Anti-Profiteering Act 2011:
This act regulates prices of goods and services to prevent unjustified price increases and
profiteering. It prohibits businesses from taking advantage of situations such as emergencies,
disasters, or shortages to unreasonably raise prices.
Consumer Protection Act 1999:
Objectives: The CPA aims to protect the interests of consumers by providing safeguards against
unfair trade practices, ensuring the supply of safe and quality goods and services, promoting
consumer education and awareness, and establishing effective dispute resolution mechanisms.
Scope: The CPA applies to various consumer transactions, including the sale of goods and
services, product liability, misleading advertisements, unfair contract terms, direct selling, and
pyramid selling.
Unfair Trade Practices: The CPA prohibits a wide range of unfair trade practices, such as false or
misleading representations, false trade descriptions, misleading price indications, bait
advertising, pyramid selling schemes, and aggressive commercial practices. It also covers unfair
contract terms that are deemed oppressive or unfair to consumers.
Product Safety: The CPA places a duty on suppliers to ensure that the goods and services they
offer are safe for consumer use. It empowers the Minister to issue safety standards and product
recalls when necessary to protect consumers from unsafe products.
Consumer Education and Awareness: The CPA emphasizes the importance of consumer
education and awareness. It promotes the dissemination of information to consumers regarding
their rights and responsibilities, product safety, and the availability of redress mechanisms.
Dispute Resolution: The CPA provides mechanisms for consumers to seek redress when their
rights are violated. Consumers can file complaints with the relevant authorities, such as the
Consumer Claims Tribunal or the Consumer Protection Council, for resolution of disputes. The
act also encourages the use of alternative dispute resolution methods, such as mediation and
arbitration.
Enforcement and Penalties: The CPA establishes enforcement agencies, such as the Ministry of
Domestic Trade and Consumer Affairs, to monitor compliance with the act.
The Sale of Goods Act 1957:
Here is an overview of the Sale of Goods Act 1957, which governs the rights and responsibilities
of buyers and sellers in the sale of goods in Malaysia:
Contract of Sale: The Sale of Goods Act 1957 defines a contract of sale as an agreement whereby
the seller transfers or agrees to transfer the ownership of goods to the buyer in exchange for a
price. It covers both actual sales and agreements to sell.
Conditions and Warranties: The act distinguishes between conditions and warranties in a
contract of sale. Conditions are essential terms that are central to the contract, while warranties
are subsidiary terms that are not as critical. The act provides remedies for breach of conditions
and warranties.
Implied Terms: The act implies certain terms into a contract of sale, even if they are not expressly
mentioned. These include terms related to the seller's right to sell, the buyer's right to enjoy quiet
possession, and the goods being of satisfactory quality and fit for their intended purpose.
Passing of Property: The act addresses the passing of property from the seller to the buyer.
Generally, property passes when the parties intend it to pass, which may vary based on the terms
of the contract or circumstances of the sale.
Transfer of Title: The act addresses the transfer of title or ownership of goods. It states that the
seller must have the right to transfer the title, and the buyer acquires good title to the goods
unless there are certain exceptions, such as sales by a person who is not the true owner.
Remedies for Breach: The act provides remedies for breach of contract by either the buyer or
the seller. These remedies may include rejecting the goods, claiming damages, or specific
performance of the contract.
Sale by Sample: The act also addresses sales where the goods are sold based on a sample
provided by the seller. In such cases, the goods must correspond to the sample's quality and
nature.

The Consumer Protection (Electronic trade Transaction) Regulations 2012:


Consumer Protection (Electronic Trade Transactions) Regulations 2012 in Malaysia, which aim to
protect consumers engaged in electronic commerce, including online shopping:
Definitions: The regulations define various terms related to electronic commerce, such as
"electronic trade," "consumer," "electronic agent," and "electronic message."
Information Disclosure: Online retailers are required to provide clear and accurate information
to consumers. This includes information about the goods or services being offered, their prices,
payment methods, delivery arrangements, and terms and conditions of the transaction.
Unfair Practices: The regulations prohibit unfair trade practices in electronic commerce. Retailers
are prohibited from engaging in false or misleading representations, bait advertising, or any other
deceptive practices.
Order Placement: The regulations establish requirements for the order placement process.
Retailers must provide consumers with an opportunity to review and confirm their orders before
finalizing the transaction. The regulations also address issues related to errors in the ordering
process and the correction of such errors.
Contract Formation: The regulations outline the rules for the formation of contracts in electronic
commerce. They specify that an electronic contract is formed when an offer and acceptance are
made electronically, and the parties have agreed to the terms and conditions of the transaction.
Consumer Privacy: The regulations emphasize the importance of consumer privacy in electronic
commerce. Retailers are required to obtain the consumer's consent for the collection, use, and
disclosure of personal information.
Enforcement and Penalties: The regulations provide for enforcement mechanisms and penalties
for non-compliance. Authorities such as the Ministry of Domestic Trade and Consumer Affairs are
responsible for monitoring and enforcing compliance with the regulations. Penalties for offenses
may include fines, imprisonment, or both.

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: -

Key-point USA Malaysia


Legislation Consumer protection laws are The primary legislation
enforced in both the federal and governing consumer
state levels. Each State has its own protection in Malaysia is
consumer protection laws. the Consumer Protection
Act, 1999.
Scope These laws cover a wide range of Consumer Protection Act
areas, including unfair or deceptive covers a broad range of
practices, product safety, consumer-related matters,
advertising, telemarketing, online including unfair practices,
commerce, and financial services. product safety, misleading
advertising, warranties,
and dispute resolution.
Enforcement The FTC (Federal Trade Commission) In Malaysia, the
has the authority to enforce federal enforcement of consumer
consumer protection laws, while protection laws is overseen
state consumer protection agencies by the Ministry of
or attorneys general oversee Domestic Trade and
enforcement at the state level. Consumer Affairs
(KPDNHEP) through its
enforcement agencies.

Remedies In the U.S. can include Consumers in Malaysia


compensation, refunds, product have various remedies
recalls, injunctions against unfair available, including the
practices, and civil penalties for right to compensation,
violators. refunds, replacement of
goods, and cancellation of
contracts.
Similarities:
1. Unfair Practices: Both the United States and Malaysia have provisions to address unfair
practices by businesses towards consumers. These provisions aim to prevent deceptive,
misleading, or fraudulent practices and may include regulations on false advertising, unfair
contract terms, and pricing practices.
2. Product Safety: Both countries have regulations in place to ensure the safety of products sold
to consumers. This includes standards for product quality, labeling requirements, and recall
procedures in case of product defects or hazards.
3. Consumer Remedies: Both consumer protection frameworks provide avenues for consumers
to seek remedies in case of violations of their rights. This may include the right to compensation,
refunds, repairs, or replacements, depending on the circumstances and nature of the consumer
complaint.
4. Government Enforcement: Both the United States and Malaysia have government agencies
responsible for enforcing consumer protection laws. In the United States, the Federal Trade
Commission (FTC) plays a prominent role, while Malaysia has enforcement agencies under the
Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).
5. Dispute Resolution: Both countries recognize the importance of resolving consumer disputes
and may have mechanisms in place for alternative dispute resolution, such as mediation or
arbitration, to provide faster and more accessible solutions for consumers.
6. Consumer Education and Awareness: Both the United States and Malaysia emphasize
consumer education and awareness initiatives to empower consumers with information about
their rights and responsibilities. These efforts aim to promote informed decision-making and
protect consumers from unfair practices.

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.

The differences are:

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.

A Case study regarding misleading advertising by a telecommunications company


in Malaysia:

Title: Misleading Advertising by a Telecommunications Company


Background:

A prominent telecommunications company in Malaysia launched an advertising campaign


promoting high-speed internet packages with unlimited data. The company claimed that
customers would enjoy fast and uninterrupted internet services without any restrictions on data
usage.

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.

Investigation and Findings:

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.

Compensation and Remedial Measures:

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.

Awareness Campaigns and Consumer Education:

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:

The case of misleading advertising by the telecommunications company in Malaysia highlights


the significance of consumer protection regulations in safeguarding the interests of consumers.
The government's swift intervention, including imposing fines, compensating affected
customers, and implementing corrective measures, helped ensure fair business practices and
increased transparency in the telecommunications industry. It also emphasized the importance
of consumer awareness and education to empower individuals to make informed choices and
hold companies accountable for their advertising claims.
Conclusion
We can see various points discussed in this assignment. Here the rights and regulations of
consumers' protection in the market of Malaysia have been analyzed. The importance of
consumer protection has also been discussed. The purposes of this assignment are also given.
Besides, the case laws, consumers' protection agencies, and consumer protection rights of
different countries have been discussed.
After all, in summary we can say that, though there are many laws and regulations for protecting
the rights of the consumers, there are also some loopholes in the way of protecting the rights of
consumers that need to be improved or developed.
The Recommendations for future improvements are given below:

• Strengthening consumer protection laws


• Enhancing enforcement mechanisms
• Improving consumer education and awareness
• Establishing product safety standards
• Regulating e-commerce and online marketplaces
• Protecting consumer data and privacy
• Strengthening international cooperation
• Continuous monitoring and evaluation
The recommendations should be come into force to ensure the effectiveness to improve the
consumer protection rights in the Malaysian context.

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