The different cases of scamming especially ones that involve online transactions are becoming severe these days. So, what more can the government do to overcome this?
In order to safeguard customers from online scams, the Ministry of Domestic Trade and Consumer Affairs is considering issuing a special licence to online businesses, as reported by Deputy Minister Datuk Rosol Wahid.
Rosol also stated that the Ministry would examine the models the US, China, Singapore, and Saudi Arabia have used to regulate their own online businesses.
He added that the proposal for the special licence had so far received positive feedback and that the ministry was currently working with online platform providers, consumer and seller associations, academicians, and economists to ensure that all aspects, including consumer and seller protection and enforcement, could be successfully carried out.
He emphasised the significance of the assessment by noting that for the past three years running, the ministry has received the most complaints about scams involving online transactions.
While waiting for new legislation, Rosol stated that law enforcement would go after online scammers with the full power of existing laws. Section 2 of the Registration of Business Act 1956, stated that each online business in Malaysia was obliged to register with the Companies Commission of Malaysia, with violators facing two years in prison, an RM50,000 fine, or both.
Most importantly, a seller must disclose their name, business registration number, email address, phone number, physical address, primary description of goods or services, full price (including shipping fee, freight, tax, and other costs), terms and conditions, and estimated delivery time in accordance with the Act.
Rosol stated that first-time offenders might be fined up to RM50,000 or imprisoned for up to three years, or both. The maximum penalties for businesses are stated to be double the amount for individuals. Moreover, individuals who commit a second or subsequent offence may be fined up to RM100,000 or imprisoned for up to five years, or both, with a punishment of RM200,000 for businesses.
As of this year, he reported that ‘15,957 complaints have been received with 4,760 related to online transactions.’
Source: The Star
