Protecting consumer rights

PETALING JAYA: Consumer groups say that the special licence for online businesses the authorities plan to introduce would help protect consumer rights, especially as more online enterprises have mushroomed in the wake of the Covid-19 pandemic.

However, some said that the process of obtaining the licence that the Domestic Trade and Consumer Affairs Ministry plans to introduce must also not be a hindrance to home traders who are trying to eke out a living.

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Federation of Malaysian Consumers Associations (Fomca) president Datuk Dr Marimuthu Nadason said to have a licence for sellers trading online is a “right move”.

“During the pandemic, everyone is doing online business. It is going to be the norm and we cannot run away from it.

“The licence will enable authorities and consumers to see whether these traders are legitimate operators or not, ” he said.

He added that although many businesses are registered with the Companies Commission of Malaysia (SSM), numerous online operators cannot be tracked.

As such, consumers cannot get their disputes resolved.

National Consumer Complaints Centre (NCCC) received 13,458 reports in 2019 and 2020.

Its senior manager Baskaran Sithamparam said the NCCC received 147 logged in cases and 164 calls asking for solutions regarding online shopping disputes.

“The common issues raised on registered online platforms are about refunds, product returns, product quality, delivery and misleading information.

“For those purchasing from social media, they face an even bigger challenge as many of these sellers are not registered with SSM.

“They do not have a proper channel for consumers to lodge a report, ” he said.

He added that if consumers face issues about online purchases, they need to email the Domestic Trade and Consumer Affairs Ministry as well as the Communications and Multimedia Ministry.

“When buying via social media, be wary as consumers do not have a warranty on the purchased items, ” he said.

In March, deputy Domestic Trade and Consumer Affairs minister Datuk Rosol Wahid said it planned to introduce a special online business licence as a way to protect consumers from falling prey to online fraud.

He said the licence would be enforced after amendments are made to the Consumer Protection (Electronic Trade Transactions) Regulations 2012.

Based on ministry records, he said the number of complaints about online transactions last year showed it increased to 11,510 complaints, compared to 5,414 in 2019.

However, Malaysian Muslim Consumer Association lead activist Datuk Nadzim Johan said while the licence would protect consumers, the government should also make it easy for businesses to sell online.

“It is a good step but obtaining the licence must be done easily. Currently, our small businesses are struggling. The government should also facilitate whatever processes that could help the community transact business, ” he said.

He suggested that a platform be built where online businesses can be registered along with their details, so that consumers will know whether they are making purchases with a verified trader.

Selangor Consumer Action Council president Datuk Dr Gavin Voon said its national body will be rolling out a mobile app called “idenfic” to enable consumers to report scams and fraudulent accounts.

“The consumers can key in the details of their purchase and attach the proof on the app. The reporting mechanism will be fast and other consumers will be alerted to such scams, ” he said.

He added that about 40% of over 9,000 reports they have received was to do with e-commerce related complaints.