Framework for Consumer Protection

Based on the firm believe that in the current market economy, consumers do need consumer protection; what does this really mean? What are the primary objectives and what are the key areas of consumer protection?

Consumer protection has four basic objectives:

1. Equalize the unequal relationship between the stronger (seller) and the weaker (consumer) party;
2. Allow the government to correct failures or weaknesses in the market that causes harm or is disadvantageous to the consumers;
3.  Ensure that products and services offered for sale are of a minimum standard of safety and quality;
4. Ensure access to certain basic goods and services (healthcare, education, food, and internet) essential for life.

More specifically as stated in the United Nations Guidelines of Consumer Protection (UNGCP), consumer protection covers the areas of:

National Policies for consumer protection

• Fair and clear contract terms and transaction procedures
• Secure payment systems
• Dispute Resolution systems
• Consumer privacy and data security

Physical safety

• Products are safe and conform to safety standards
• Consumers should be informed of risks

Protection of Consumers Economic Interests

• Products should meet reasonable standards of use and reliability
• No misleading advertisements
• No adulteration of goods
• Fair and effective competition in the market (a major issue that will be addressed in a later post)
• Reliable after-sales service and spare parts
• Protected from unfair contracts – such as one-sided standard contracts where the interests of consumers are compromised
• Information should be provided to enable consumers to make informed decisions
• There are national standards for safety and quality of goods and services

Dispute Resolution

• There should be fair, effective and impartial mechanism to address consumer complaints
• It should be accessible in terms of affordability to all consumers,

Education and Information

• Consumers should have access to education and information programmes

How are the above Framework carried out/implemented:

1. National Consumer Policy
   1. Malaysia has a National Consumer Policy that is currently being revised and update
2. Agency dedicated specifically to consumer protection
   1. The main agency responsible for consumer protection in Malaysia is the Ministry of Domestic Trade and Consumer Affairs
3. Consumer Laws
   1. The primary law for Consumer Protection in Malaysia is Consumer Protection Act, 1999.
   1. Many other laws also impact consumers directly and indirectly
4. Consumer Redress Mechanism
   1. The primary mechanism for consumer redressal is the Consumer Tribunal (relates to the Consumer Protection Act, 1999)
   1. Other important redressal mechanisms are the Ombudsman for Financial Services (OFS) for the banking and insurance sectors and the Malaysian Communications and Multimedia Commission for complaints relating to the telecommunications and internet.
   1. The National Consumer Complaints Center (NCCC) operated as an non-profit also addresses consumer complaints
5. Consumer Education Programmes
   1. Both the government and non-government agencies undertake some form of consumer education.