BUSINESSES that impose hidden charges or additional fees only at the final stage of a transaction risk fines of up to RM100,000, while individual offenders could face imprisonment, says Datuk Armizan Mohd Ali (pic).
The Domestic Trade and Cost of Living Minister said his ministry viewed such practices seriously, particularly when the final amount payable exceeds the price initially displayed or advertised to consumers.
Armizan said the practice was misleading and undermined consumers’ rights to know the actual price before making informed purchasing decisions.
Under Section 10B(1) of the Price Control and Anti-Profiteering Act 2011, businesses must include all applicable taxes, duties and additional charges in their displayed or advertised prices.
“Consumers must be able to see the actual price they are required to pay, rather than only discovering certain charges at the final stage of a transaction,” he said in a written parliamentary reply yesterday.
Armizan was responding to Muhammad Islahuddin Abas (PN-Mersing), who asked about measures to curb hidden charges in the services, food and beverage, and online business sectors.
He said companies found violating the provision could be fined up to RM100,000 under Section 57 of the Act, while individual offenders face fines of up to RM50,000, imprisonment of up to two years, or both.
He said the ministry could also take action under the Consumer Protection Act 1999, which prohibits misleading price representations, including displaying prices that appear to cover all costs when additional charges are imposed separately.
“Under Section 145 of the Act, companies face fines of up to RM100,000, while individuals could be fined up to RM50,000, jailed for up to three years, or both.
“These provisions applied to both physical business premises and online transactions,” he said.
Armizan added that the ministry’s Guidelines on the Implementation of the Inclusive Pricing Policy required businesses, particularly in the food and beverage, e-commerce and delivery sectors, to disclose the final price, including service and delivery charges, before customers confirmed their orders.
He urged consumers to check the final amount before making payments and report discrepancies between advertised and actual prices to the ministry.
