New e-commerce laws in the works

The Star

11 hours ago

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali speaks during a press conference in conjunction with the engagement session on the review of e-commerce legislation, held in Putrajaya. — RAJA FAISAL HISHAN/The Star
PUTRAJAYA: Updated legislations aimed at better protecting consumers and strengthening oversight of e-commerce platforms are expected to be brought to Parliament next year, says Datuk Armizan Mohd Ali (pic).
The Domestic Trade and Cost of Living Minister said a study into existing legislation is underway and should be completed by next month.
Among the areas being assessed is the need to amend the Electronic Commerce Act 2006 (Act 658), he added.
Explaining further, he said Act 658 was first introduced as an enabling law to recognise and facilitate e-commerce trade, and there have been several suggestions on whether to repeal the Act or introduce an improved version.
'These are among the issues that will be finalised once the study and engagement sessions are completed.
'The findings will then be presented to the Cabinet and the Attorney-General's Chambers,' he told a press conference ahead of a town hall session with e-commerce traders yesterday.
'I would prefer for it to be tabled by the end of this year, but due to factors beyond our control, it will be brought, at the latest, during Parliament's first sitting next year,' he added.
Armizan said there is a need to revisit Act 658 to create consistent regulations that not only protect consumers but also support continued growth in the sector.
'There was a review conducted in 2012 on how complaints are channelled alongside consumer protection.
'However, the decision was made to retain it as consumer protection regulations would be covered under the Consumer Protection Act.'
Armizan said the ministry is also studying mechanisms to regulate e-commerce platforms based abroad that have products entering the local market.
Among the options being explored are establishing an act that provides extra-territorial jurisdiction and pursuing government-to-government (G2G) cooperation.
On another matter, he said the ministry is exploring possible mechanisms to require e-commerce platforms to consult the authorities before introducing any additional charges on sellers.
Armizan acknowledged that current regulations do not give his ministry any regulatory powers.
'To me, what the platform did is not timely, as there was a review last year and now there is another review.
'To halt this 100% is difficult but we are looking at how we can get platforms to have an engagement with the authorities before coming to any decision,' he said.
This comes after an e-commerce platform introduced a revised fee for all completed orders.
The fee is directly deducted from each order before the sales proceeds are transferred to the seller's account.
On July 11, MCA's economic and SME affairs committee chairman Datuk Lawrence Low said the revised fee structure would affect nearly every stage of a seller's operations.
While some of the charges may seem small individually, Low warned that this would cumulatively place a significant financial strain on sellers and ultimately lead to higher prices for consumers.