Ministry eyes dedicated e-commerce law to enhance digital consumer protection

THE Ministry of Domestic Trade and Cost of Living (KPDN) is proposing the introduction of a new, dedicated law to regulate Malaysia’s rapidly evolving e-commerce sector.

This comes amid growing concerns over online fraud, cross-border enforcement limitations, and inadequate legal coverage in digital trade.

During the second E-Commerce Legislative Review Engagement Session held on 9 August 2025, Deputy Minister Datuk Dr Fuziah Salleh said the current legal framework must be updated to reflect today’s dynamic digital landscape.

“The aim is to ensure our policies and regulations can accommodate the changing business environment while strengthening consumer protection in an increasingly digital world,” she said in a statement released by the ministry on Saturday.

The session brought together a wide range of stakeholders, including digital platform representatives, industry players, consumer associations, legal experts, academics, and government agencies. It forms part of the ministry’s broader Regulatory Impact Assessment (RIA) process, in line with standards set by the Malaysia Productivity Corporation (MPC).

Fuziah highlighted that e-commerce is now a central component of Malaysian life and a key driver of the digital economy, but with its rise comes a host of new risks, including the sale of counterfeit goods, misleading advertisements, the use of fake seller identities, and complexities in dealing with foreign suppliers, especially in return and refund claims.

KPDN's findings, based on rising consumer complaints in 2023 and 2024, point to the urgent need for a comprehensive legislative framework that would address current gaps and enhance governance.

The proposed law would focus on clearer industry responsibilities, stronger enforcement capabilities, and comprehensive protection for consumers and micro-entrepreneurs.

During the session, stakeholders were also briefed on the recent amendments to the Consumer Protection (Electronic Trade Transactions) Regulations 2024, and invited to provide feedback to shape the drafting of the new law.

“The ecosystem must be innovative, but also safe, transparent, and ethical,” said Dr Fuziah, adding that public input will play a key role in finalising the draft legislation, which is expected to be tabled soon.

Separately, the Deputy Minister conducted a ground enforcement and advocacy visit on 8 August to STF Agriculture Sdn. Bhd. in Tamparuli, Sabah, focusing on post-subsidy price monitoring of eggs. The visit was part of ongoing efforts to prevent profiteering following the removal of government subsidies, in accordance with the Price Control and Anti-Profiteering Act 2011 (Act 723).

KPDN pledged to intensify monitoring to ensure egg prices remain reasonable and supplies stable nationwide. “Firm action will be taken against any party found in violation of the law. The ministry remains committed to ensuring compliance across the supply chain and protecting consumer interests,” she affirmed. - August 9, 2025