Written by Fatin Ismail
Despite the rapid growth of online commerce, transparency and truthful representation remain persistent challenges in the digital marketplace. A number of recurring issues highlight the need for stronger compliance, clearer communication, and enhanced consumer protection mechanisms.
Among the key gaps observed are non-compliance with the product and service disclosure requirements, and limited consumer understanding of cooling-off periods and key contract terms. This often leads to difficulties in raising disputes and reinforces the need for clearer, more prominent disclosure of crucial contractual information.
The increasing complexity of digital contracts and “click-wrap” agreements has made it harder for consumers to identify or understand essential terms, such as refund or cancellation policies. At the same time, disputes involving goods that do not match their descriptions, misleading advertisements, counterfeit or prohibited products, drip pricing, and fake reviews remain prevalent. Together, these problems point to a pressing need for stronger adherence to transparency, truthful representation, and responsible business conduct across the e-commerce ecosystem.
Transparency in E-Commerce
In the online marketplace, trust is currency. Businesses earn it through transparency, be it in pricing, returns, data use, and by providing clear, fair terms of service. Consumers expect honesty and accountability, while regulators demand compliance. When legal awareness meets ethical practice, it builds digital relationships that last beyond a single transaction.
Transparency in e-commerce is more than an ethical choice; it is a legal obligation. Both sellers and platform intermediaries play distinct but complementary roles in upholding this trust through responsible business conduct.
Product and Service Information Disclosure
Sellers bear the primary responsibility to ensure compliance with disclosure requirements under prevailing laws. Accurate, complete, and accessible product or service information allows consumers to make informed decisions and reduces the risk of misleading representations.
Truthful and Responsible Advertising
Advertisements in the digital marketplace must adhere to the principles of legality, honesty, decency, and social responsibility as set out in frameworks like the Malaysian Code of Advertising Practice, Food Act 1983, Medicines Act 1956, Road Transport Act 1987, and Tourism Industry Act 1992. Sellers are required to ensure that claims about their products or services are truthful, verifiable, and not designed to mislead.
Intermediaries as Gatekeepers
E-commerce platforms and intermediaries are not passive hosts. They are obligated to notify sellers of their duty to comply with advertising and disclosure standards. Moreover, intermediaries must provide mechanisms that allow consumers to report misleading or false product postings, reinforcing accountability across the supply chain.
Visibility of Key Contractual Information
Key information critical to consumer decision-making, such as cooling-off periods, refund policies, and essential contract terms, must be presented prominently. Both intermediaries and e-retailers have a duty to make these terms accessible and clear, ensuring consumers are not disadvantaged by hidden conditions or ambiguous language.
Honest Representation and Refund Policies
Sellers and intermediaries must clearly state their payment, deposit, and refund policies, whether monetary or not. This transparency helps manage consumer expectations, reduces disputes, and reinforces confidence in online purchasing systems.
Trust and Transparency
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.
Published on 21 October 2025