It's regulated: Ministry dismisses call to ban gold-plated products amid TikTok boom
Domestic Trade and Cost of Living Ministry enforcement director-general Datuk Azman Adam said gold-plated products have been in the market for years, and their increasing popularity did not warrant a ban.
Previously, the Malaysia Gold Association (MGA) called for the sale of "gold-wrapped" products to be banned amid their growing popularity on social media platforms like TikTok.
Its president, Datuk Louis Ng, said that these items posed a risk to consumers, pawnbrokers, and the gold recycling industry as they could be mistaken for authentic gold.
He said a thick layer of gold wrapping could make such items indistinguishable from genuine gold, especially to the untrained eye.
Azman said the Trade Descriptions (Articles Made of Precious Metals) Regulations under the Trade Descriptions Act governed the sale of precious metals like gold, silver and platinum.
"The aim (of the regulations) is to protect consumers from fraud and ensure transparency in the precious metals market," he told the New Straits Times.
Azman said the regulations specified that jewellery coated with gold, silver or platinum must be described with the word "plated" when sold to customers.
A company or individual in violation of the law faces a fine of up to RM25,000 or RM10,000, respectively.
An individual can also be jailed for up to one year, or both, upon conviction.
Action can be taken against traders who fail to comply with this requirement.
However, to date, Azman said the ministry had not received any official complaints regarding the sale of gold-plated silver products or gold-like items.
Precious metal sales highly regulated Azman said online traders were also subjected to the law, including the requirement to disclose product information under Schedule 3 of the Consumer Protection (Electronic Trade Transactions) Regulations.
He added that the sale of precious metals was highly regulated against fraud.
"Any person who uses false trade descriptions regarding the purity standards of precious metals may also be prosecuted under Regulation 8, Trade Descriptions (Articles Made of Precious Metals) Regulations.
"They can also be charged under Section 5 read with Section 6(f) of the Trade Descriptions Act," he said.
Under the Act, if the offender is a corporate body, it may be fined up to RM250,000 upon conviction. And for a second or subsequent offence, the fine may be increased to a maximum of RM500,000.
If the offender is not a corporate body, he may be fined up to RM100,000 or face imprisonment for up to three years, or both.
He added that businesses selling or supplying precious metals must provide a receipt detailing the item's specifications, as mandated under Regulation 9 at the time of supply.
Azman also warned that traders using uncertified gold weighing scales or engaging in fraudulent weight measurements could be prosecuted under the Weights and Measures Act.
Under Section 14(6) of the Act, any person who uses or possesses for trade purposes any weight, measure, or weighing or measuring instrument that has not been verified, stamped, certified or approved as required under this section commits an offence.
Upon conviction, they may be fined up to RM40,000 or imprisoned for a term not exceeding three years, or both. The weight, measure or weighing or measuring instrument may be forfeited.
The compoundable amount for this offence shall not exceed the maximum fine, which is RM40,000.
"Among others, complaints related to misleading sales practices may also be investigated under Sections 9 and 10 of the Consumer Protection Act," he said.
Under the Act, if the offender is a corporate body, it may be fined up to RM250,000, and for a second or subsequent offence, the fine may be increased to a maximum of RM500,000.
If the offender is not a corporate body, he may be fined up to RM100,000 or face imprisonment for up to three years, or both.
Meanwhile, Azman said consumers who felt cheated in a sales transaction could file a claim with the Tribunal for Consumer Claims Malaysia.
He encouraged consumers to report any concerns by submitting complaints with full and accurate details through WhatsApp: 019-848 8000, http://eaduan.kpdn.gov.my, 1-800-886-800 and Ez ADU KPDN Mobile App.
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