Consumer Protection (Electronic Trade Transaction) Regulations 2024

As e-commerce continues to rise, the Consumer Protection (Electronic Trade Transaction) Regulations 2024 came into effect on 25 December 2024, replacing the Consumer Protection (Electronic Trade Transaction) Regulations 2012. The 2024 Regulations aims to strengthen consumer protection by introducing stricter requirements for online sellers and platforms, including clearer obligations on disclosures, responsibilities of supplier and platform, and recordkeeping.

The key changes and requirements in the 2024 Regulations

1. Scope and Definitions

Expansion of definitions:

"Online marketplace": any electronic trade platform that is conducted through electronic means by any supplier;
"Online marketplace operator": any person who makes available or operates an online marketplace for the purpose of trading or advertising;
"Online marketplace supplier": any person who conducts a trade or advertisement through an online marketplace.

This expansion of scope brings all online trade participants to be regulated under the 2024 Regulations.

2. Mandatory disclosures by online marketplace suppliers

Name of online marketplace supplier or company;
Website address (if any);
Email and phone number;
Business or trading address;
Description of the goods or services offered;
Full price inclusive of transport cost, taxes, and any other costs;
Payment methods;
Terms and conditions of sale;
Estimated time of delivery;
Certification of compliance with safety and health standards (if any).

All disclosures are required to be made in the national Malay language; other languages may be used in addition but not as a substitute. However, based on news articles, the language requirement for disclosures has been postponed by the Ministry of Domestic Trade and Cost of Living pending further review.

3. Obligations of suppliers

Bear the cost of redelivery if goods are materially different or defective;
Ensure services supplied are reasonably fit for their intended purpose;
Allow buyers to correct errors in orders before or after confirmation;
Acknowledge receipt of orders without undue delay.

4. Duties of online marketplace operators

Ensure that suppliers comply with all disclosure requirements before allowing transactions to take place;
Provide a channel for purchasers to lodge complaints;
Ensure that suppliers’ advertisements do not violate the 2024 Regulations.

5. Recordkeeping requirements

Online marketplace operators must retain information of online marketplace suppliers for a period of three years, including:

Supplier details including name, phone number, identity card or passport number, business account number and e-mail address;
Website address, if any;
Name and registration number of trade or company, if any;
Transaction and advertisement records.

Online marketplace suppliers are also required to maintain records of their advertisements and electronic transactions.

Our opinion

These regulations mark a significant step towards a more robust and trustworthy e-commerce environment in Malaysia. Suppliers and operators are advised to review and enhance their processes and disclosures to align with these updated obligations.

In addition, the e-commerce legislation including the Consumer Protection Act 1999 and the Electronic Commerce Act 2006 is being reviewed with the aim of developing a more responsive legal framework for regulating the industry and protecting consumer interests. The review is expected to be finalized by the end of 2025.