PETALING JAYA: Sellers involved in cash-on-delivery (COD) transactions could receive better legal protection under a proposed new E-Commerce Bill aimed at curbing arbitrary order cancellations and ensuring buyers fulfil their payment obligations.
The Domestic Trade and Cost of Living Ministry said the proposed legislation would clarify buyers’ responsibility to complete payment for goods that have been verified and delivered according to agreed transaction terms.
A total of 46 complaints involving COD transactions were reported in the first eight months of this year, more than double the 18 complaints recorded throughout 2025.
In a written parliamentary reply to Kuantan MP Wan Razali Wan Nor, the ministry said a total of 88 complaints were received between January 2023 and August 2026.
Of these, 26 complaints (30%) involved goods or services that differed from what was advertised, followed by 14 cases (16%) involving false trade descriptions and 10 cases (11%) involving counterfeit goods.
The ministry said there is currently no specific legal framework protecting sellers in COD transactions, adding that the proposed Bill is being developed to address the gap.
It would also seek to prevent buyers from arbitrarily cancelling orders when goods are already in the delivery process.
“The ministry is also looking into ensuring that terms imposed by e-commerce platforms on sellers are transparent, fair and reasonable, without affecting their cash flow or increasing logistics costs.
“The ministry takes note that COD transactions are increasingly being used in e-commerce transactions involving consumers, sellers, online platforms and delivery personnel.”
It said COD transactions are currently governed by the Consumer Protection Act 1999 and the Consumer Protection (Electronic Trade Transactions) Regulations 2024, which came into force on Dec 25, 2024.
Under the regulations, sellers must ensure that information on products, prices, delivery charges, payment methods and transaction terms is accurate and not misleading.
Online marketplace operators are also required to take reasonable steps to retain records of sellers and electronic transactions for three years to facilitate investigations and enforcement action in the event of disputes.
On delivery personnel, the Domestic Trade and Cost of Living Ministry said the Transport Ministry is responsible for regulating p-hailing operations, while the welfare and protection of gig workers falls under the Gig Workers Act 2025, administered by the Human Resources Ministry.
“The government will continue strengthening protections for consumers and sellers through existing laws, regulations and other initiatives to ensure COD transactions are conducted transparently, safely and responsibly.”
