Changing consumer laws
It’s a great thing to be able to buy anything you want online, but as online shopping becomes more and more common place in our society, it has also become a potential area of transaction fraud – especially in smaller or less formal online market places like social media sites.
To combat this, the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) have guided that they will be reviewing the existing consumer protection laws.
Datuk Seri Saifuddin Nasution Ismail, minister of KPDNHEP said that fraud, especially those related to online business, now ranked second on the list of complaints received by the ministry and the issue could not be underestimated, especially in terms of enforcement.
“These online traders are not just those under the auspices of dominant entities like Shopee or Lazada.
“So, the definition of online sales is not just confined to a company.. it can also be an individual.. and there we have difficulty in enforcing the laws,” he told reporters after a luncheon held in conjunction with the Shopee Kongsi Fa Cai 2019 campaign on Thursday.
Although the ministry has a consumer tribunal to address consumer issues, Saifuddin attributed the downside of the enforcement to the ineffectiveness of the current laws.
“One of the shortcomings is a notice must be served physically in order for the person being complained can be charged in a tribunal case after the consumer has lodged a complaint and the ministry has investigated the matter,” he said.
Hence, he said the ministry along with legal advisers would review the existing legal clauses, while industry players could also give their views on ways to counter online business frauds.
While such frauds are more susceptible in online marketplaces, Shopee Malaysia business head Zed Li explains that the platform has a guarantee system called ‘Shopee Guarantee’ in placed to protect its consumers.
“In essence, we will hold the money from the seller until the buyer has received the products. Now that gives protection to the buyer as well.
“Actually, on top of that, if there is a dispute between the buyer and the seller, Shopee will come in and solve the problem for them,” he said, adding that Shopee would continue to work with the ministry in safeguarding consumer rights, as well as expanding the ecommerce industry.