PETALING JAYA: Every three days, someone would be told he had won a lucky draw, only to end up buying heavily overpriced products.
Such dubious “scratch and win” schemes have been rising over the past five years.
In the first three months of this year, there were already 30 cases, which means that one consumer is scammed every three days.
Data obtained from the ministry showed that there were 99 complaints last year compared with just six in 2022.
According to the ministry, victims are often approached and asked to scratch tickets designed to guarantee a “win”, before being told they had won cash and luxury prizes.
They are then pushed into making payments for supposed taxes and processing fees, or products sold at unreasonable prices.
“We view this seriously as senior citizens are a vulnerable group that is more exposed to psychological manipulation and have limitations in accessing information and digital technology,” the ministry said.
Among the common tactics identified were misleading claims that consumers had “won” prizes which, in fact, came with undisclosed or hidden conditions such as minimum purchases required or extra payments, or unclear terms and conditions.
The ministry also highlighted excessive sales pressure where consumers were forced to make immediate decisions without being given time to think it over.
In Malaysia, laws that provide protection against such tactics include the Consumer Protection Act and the Trade Descriptions Act.
These laws prohibit misleading conduct, false prize offers, bait advertising and deceptive trade descriptions in promotions and advertisements.
The ministry emphasised that it has the power to carry out investigations and inspections to ensure compliance with the law.
“If there is sufficient evidence of violations, compounds or prosecutions can be initiated in court, with offenders facing fines or imprisonment,” it said.
It also said that it has intensified periodic monitoring operations at business premises and will continue taking legal action against unethical traders.
“We are strengthening consumer advocacy and awareness programmes, particularly targeting senior citizens, to help them recognise and avoid suspicious promotional tactics.”
The ministry advised consumers to take proactive steps to protect themselves and family members from becoming victims of suspicious schemes.
Consumers should scrutinise terms and conditions, including eligibility requirements, participation limits and prize redemption procedures, it said.
“Keep the receipts, advertisements and all related communications as proof when you submit official complaints,” the ministry said.
The public, according to the ministry, should not make payments or purchases based solely on promises of prizes without verifying the redemption conditions.
“Do not disclose banking information or transfer money to unknown individuals, especially when approached with suspicious offers involving upfront payments,” it said.
