Written by Isaac Chew
Electronic commerce (‘E-commerce’) has transformed shopping into a convenient and accessible activity, allowing consumers to purchase products and services from the comfort of their homes.
It has revolutionised how consumers shop, offering unparalleled convenience and access to a global marketplace and supply chain. However, this digital shift also raises unique consumer rights and dispute resolution issues.
The Malaysian Communications and Multimedia Commission (‘MCMC’) reported that in June 2019, 51.2% of Malaysians used E-commerce platforms to shop and sell online. As E-commerce continues to flourish in Malaysia’s economy, more consumers are embracing digital marketplaces.
However, as more consumers embrace the digital market, it’s only natural that the number of E-commerce disputes will continue to grow. Many consumers remain sceptical of E-commerce platforms due to concerns over whether their complaints will be resolved fairly and quickly.
Consumer Protection in Malaysia
A proper system of resolving consumer disputes is one of the most important components in consumer protection law. Fortunately, Malaysia’s consumer protection laws offer solid support for resolving e-commerce disputes. The Consumer Protection Act 1999 (‘the CPA 1999’) aims to help consumers make informed decisions and protect them against online scams and unfair practices, such as misleading advertisements, false representations, and more.
This Act grants consumers the right to pursue redress for any violation of their rights, offering a formal legal pathway for resolving disputes. In response to the evolving digital landscape, recent amendments to the CPA 1999 have enhanced its effectiveness in addressing the complexities of online transactions.
In addition to that, the Consumer Protection (Electronic Trade Transactions) Regulations 2024 (‘the CPR 2024’) address the unique challenges of online transactions. Online sellers must provide clear and accurate details about their products, prices, and terms, so buyers know exactly what they’re getting. Translations in other languages are allowed, but Bahasa Malaysia is mandatory. Online sellers must also display their full information, including name, contact details, and business address. Not only that, they have to provide relevant safety certifications for regulated products. Providing false or misleading information isn’t just wrong, it’s an offence. The regulations also require E-commerce platforms to have proper systems for handling complaints. This helps ensure that E-commerce platforms provide accessible and fair redress, thereby reinforcing consumer trust in the digital marketplace.
Electronic Commerce Act 2006
The primary purpose of the Electronic Commerce Act 2006 is to provide legal recognition for electronic communications in the formation of contracts. In simple terms, it means that contracts made through emails, websites, or apps are recognised by law and are legally binding just like paper documents. The goal is to make it easier and safer to do business online by giving legal validity to electronic communications and transactions. More importantly, these electronic records can be used as valid proof to take legal action and resolve disputes.
Personal Data Protection (Amendment Act 2024)
The Personal Data Protection Act 2010 (‘PDPA 2010’) is crucial for protecting consumers as e-commerce grows in Malaysia. It requires businesses to obtain consent before collecting, using, or sharing personal data and limits data collection strictly to what’s necessary, helping to ensure transparency and reduce the risk of misuse or privacy breaches.
The Personal Data Protection (Amendment) Act 2024 (‘PDPA 2024’) introduced mandatory data breach notifications to both the regulator and affected individuals. Biometric data, such as fingerprints and facial scans, is classified as sensitive personal data. Both data controllers and data processors are now directly accountable for any mishandling of personal data. Additionally, organisations must appoint a Data Protection Officer (‘DPO’), who is responsible for ensuring the organisation complies with the PDPA 2024 and is answerable to both the data controller and processor. Penalties for non-compliance have been increased, with fines of up to RM1,000,000 and/or three years’ imprisonment for serious breaches.
This ensures that consumers in the digital space are more protected, holding businesses accountable for handling data and reducing risks of identity theft, fraud, and phishing.
Resolving online disputes
In commerce, it’s important to have easy and efficient ways to resolve disputes, and the same goes for E-commerce. Even with the best systems in place, conflicts between consumers and online platforms still happen from time to time.
Seek informal resolutions
Before escalating, it’s always better to contact the seller or marketplace (like Shopee or Lazada) through their official dispute channels. Many users find that mentioning they will be filing a formal complaint or taking legal action often encourages sellers to quickly offer a refund or replacement, without needing to escalate the issue further.
Reporting to the relevant authorities
If the issue isn’t resolved through the seller or platform, you can take it further by filing a formal complaint with the right authorities. For violations of the CPA 1999 and CPR 2024, you can report to the Kementerian Perdagangan Dalam Negeri dan Kos Sara Hidup (‘KPDN’). Whereas the Malaysian Communications and Multimedia Commission (‘MCMC’) addresses issues related to telecoms, courier services, or scam platforms. And for clear cases of fraud, it’s best to contact the police or the Commercial Crime Investigation Department (‘CCID’)
The Tribunal for Consumer Claims
Consumers can seek redress through consumer tribunals if they have suffered losses due to E-commerce fraud. The CPA 1999 empowers these bodies to effectively resolve consumer disputes, allowing for compensation, refunds, or other remedies.
As an alternative, for cases less than RM5,000, consumers can also seek redress at the Small Claims Court, where legal representation is not required.
Magistrates’ Courts handle civil claims up to RM100,000, while Sessions Courts cover disputes above RM100,000 up to RM1 million. More complex or high-value cases, especially those over RM1 million, are held in the High Court. They’re better suited for handling detailed matters that go beyond the scope of the Consumer Claims Tribunal and the Small Claims Court.
Alternative Dispute Resolution
If resolving the issue directly with the seller doesn’t work, it’s worth considering alternative methods before heading to court. Alternative Dispute Resolution (ADR), such as mediation or negotiation, is recommended as an alternative, helping both sides come to a fair agreement without the stress, time, and expense of going to court.
A more modern version of this is Online Dispute Resolution (‘ODR’). As the name suggests, ODR brings these same processes into the digital space. From filing a complaint to conducting hearings and reaching a decision. It’s quicker, and often more affordable.
Conclusion
E-commerce is now part of daily life, but so are the risks. The most important things are knowing your rights and acting quickly when something goes wrong. Help is accessible whether the issue is a misrepresentation or a missing parcel. With Malaysia having a variety of ways to redress e-commerce disputes, Malaysian consumers can purchase online or engage with a business online with more assurance knowing that support and solutions are just a few steps away in the event that things don’t work out as expected.
Published on 3 July 2025