Electronic Commerce

The war against eCommerce fraud, is Malaysia Ready?

Globally, eCommerce fraud is escalating, and Malaysia is no exception. In 2024 alone the Royal Malaysia Police logged 35,368 cybercrime cases tied to online scams, and in just the first three months of 2025 we’re already at 12,110 cases with losses totalling RM 573.7 million. Legal protections such as the Contracts Act 1950, Consumer Protection Act 1999 and the Penal Code attempt to cover the issue, but as of today, there’s no single, dedicated act governing eCommerce fraud. Meanwhile, Singapore and Australia have taken steps to curb scams with the Singaporean Technical Reference 76 and the Australian Scam Prevention Framework.

Is the Metaverse Considered as Electronic Commerce in Malaysia?

eCommerce in Malaysia is primarily given legal recognition by the Electronic Commerce Act 2006 (‘ECA 2006’). The ECA 2006 facilitates electronic transactions by recognising the legal validity of electronic messages, documents, and contracts. It broadly covers ‘commercial transactions’ conducted via electronic means, encompassing the supply or exchange of goods or services.

While Malaysian law does not explicitly mention the ‘Metaverse’, many of its activities share the same fundamental characteristics as eCommerce.

Insights from the Review of eCommerce Legislation Final Report

The Review of eCommerce Legislation Final Report (Laporan Akhir Kajian Semakan Semula Perundangan eDagang) (‘the report’) represents a major national effort to modernise, refresh and renew the legal and regulatory framework for online commerce in Malaysia. Led by the Ministry of Domestic Trade and Cost of Living (‘KPDN’) with input from over 90 stakeholders, the report provides a comprehensive evaluation of existing eCommerce laws, identifies key enforcement and consumer protection gaps, and sets out a structured plan for reform.

Online Shopping is Convenient … until it’s not

In the digital era, the appeal of e-commerce is undeniable, browse at home, checkout in seconds, enjoy doorstep delivery. Yet this convenience masks a growing underside of risk for consumers. With smartphones, high-speed connectivity and platforms offering deep discounts, many of us have embraced online shopping as the go-to. The advantages include speed, access to global and local products, continuous promotions and variety.

Online shopping often brings many benefits, that is until issues arise.

Unfair Trade Practices and Monopolistic Acts in Digital Platforms

The rapid growth of digital markets, especially in e-commerce and multi-sided platform business, has raised significant concerns about unfair trade practices and monopolistic acts.

On 19 August 2025, the Trade Competition Commission of Thailand released the Draft Guidelines for Considering Unfair Trade Practices and Monopolistic Acts in Multi-Sided Platform Business, Digital Services, and E-Commerce to address these issues. The Draft Guideline establishes four principles and identifies two main categories of potentially anti-competitive conduct and unfair trade practices.

E-Commerce Accessibility and Inclusivity

As the internet becomes the backbone of global trade and daily living, accessibility in E-Commerce is increasingly recognised as a public good that underpins equitable economic participation. The COVID-19 pandemic reinforced this reality, highlighting how essential digital access is for consumers to obtain goods, services, and redress mechanisms.

“Add to Cart”: Digital Contracts in E-Commerce

The convenience of online shopping often overshadows the legal realities behind each transaction. Every online purchase, no matter how big or small, constitutes a legally binding agreement between buyer and seller. When a consumer clicks “Add to Cart” or “I Agree,” a digital contract is formed, establishing enforceable rights and obligations on both sides.

Transparency and Trust in E-Commerce

In today’s interconnected digital economy, transparency is not just compliance, it is strategy. When sellers and intermediaries uphold truthful representation, honest marketing, and clear disclosures, this leads to consumer trust, ultimately strengthening the marketplace ecosystem.

Extraterritoriality: E-Commerce Laws

Despite the rapid growth of cross-border trade, Malaysia currently lacks a legislative framework that specifically governs cross-border e-commerce transactions. This creates a regulatory blind spot, allowing foreign online marketplace operators and sellers to evade liability simply because they do not have a physical or legal presence in Malaysia. When harmful, defective, or illegal goods are sold into Malaysia, or when personal data is mishandled by foreign platforms, affected consumers often struggle to identify, locate, or take legal action against these entities due to the differing jurisdictions in which parties are located. This leaves consumers vulnerable and domestic laws unenforceable against offshore actors.

Regulating the Digital Marketplace: Law in the Age of E-Commerce

E-commerce has revolutionised the way businesses and consumers interact. However, while technology has changed the mode of doing business, the law continues to apply. The same principles that govern traditional commerce — from fair trading to product safety — extend to online transactions, though often with added complexity.

The war against eCommerce fraud, is Malaysia Ready?

Is the Metaverse Considered as Electronic Commerce in Malaysia?

Insights from the Review of eCommerce Legislation Final Report

Online Shopping is Convenient … until it’s not

Unfair Trade Practices and Monopolistic Acts in Digital Platforms

E-Commerce Accessibility and Inclusivity

“Add to Cart”: Digital Contracts in E-Commerce

Transparency and Trust in E-Commerce

Extraterritoriality: E-Commerce Laws

Regulating the Digital Marketplace: Law in the Age of E-Commerce

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