MALAYSIA: Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob has announced that new Consumer Protection Regulations (Online Commerce Transaction) 2012 which was gazetted on Dec 21, 2012 will be implemented from July 1, 2013 to protect online shoppers from cheating merchants in the country, The Star reported.
Companies will face a maximum fine of RM100,000 for the first offence and the quantum doubles to RM200,00 for subsequent offences if offend the regulation which using provision under the Consumer Protection Act 1999. For individual offender, he or she will face a fine of not more than RM50,000, a maximum three years jail or both.
The new regulations require online merchants to clearly state their identity including business or company name, email address, phone number and business address as well as product description, detail pricing, payment methods, terms and conditions and shipping policy.
According to Ismail Sabri, more than 1.1 million Malaysians spent about RM1.8 billion for online shopping in 2010 and this value was expected to be tripled by 2014. He added that 67 per cent of the 1.1 million online shoppers are aged between 15 and 39 and this group of people will mature and continue purchase online in the next 10 years while the new group will also follow.