Akta Perlindungan Pengguna 1999
Applies to: Federal (whole of Malaysia) Ā· Official text ā
- Goods sold to consumers carry implied guarantees (gerenti tersirat) of title, acceptable quality, fitness for purpose, match with description, reasonable price and availability of repairs and spare parts (ss 31ā37). Sellers cannot contract out of them (s 6).
- Services must be done with reasonable care and skill, be fit for purpose and be completed in a reasonable time (ss 53ā56).
- False or misleading claims about goods, services or prices are offences: a company can be fined up to RM250,000 for a first offence (s 25).
- Since 2010, courts and the Tribunal can strike down procedurally or substantively unfair contract terms (Part IIIA).
- The Tribunal for Consumer Claims hears claims up to RM50,000 (since 2019), filed within 3 years, with no lawyers and a small fee.
What this law covers
The Consumer Protection Act 1999 (Akta Perlindungan Pengguna 1999) applies to goods and services offered or supplied to consumers (pengguna) in trade, including transactions made electronically (s 2(1)). A consumer is someone who buys or uses goods or services of a kind ordinarily bought for personal, domestic or household use, and not mainly for resale, business or manufacturing (s 3).
The Act does not apply to securities, futures contracts, land and interests in land (except as the Act says), services by regulated professionals such as doctors and lawyers, and some other areas listed in s 2(2). Other laws cover specific sectors: see Consumer rights for a general guide. The Act is enforced by the Ministry of Domestic Trade and Cost of Living (KPDN).
You cannot sign away these protections: the Act applies despite anything to the contrary in an agreement, and a supplier who tries to contract out commits an offence (s 6).
Guarantees in the supply of goods and services
When goods are supplied to a consumer, the law automatically implies guarantees (Part V):
- Title: the supplier has the right to sell (s 31).
- Acceptable quality (kualiti yang boleh diterima): fit for all usual purposes, acceptable in appearance and finish, free from minor defects, safe and durable, as a reasonable consumer would expect (s 32).
- Fitness for a particular purpose you made known to the supplier (s 33).
- Match with description (s 34) or sample (s 35).
- Reasonable price where none was agreed (s 36).
- Repairs and spare parts reasonably available for a reasonable time (s 37).
Your remedies (s 41): if the failure can be fixed, you can require the supplier to repair it within a reasonable time. If it cannot be fixed or is substantial, you may reject the goods (and choose a refund or replacement) or claim compensation for the drop in value. You can also claim other proven loss caused by the failure. In some cases you can claim against the manufacturer directly (Part VII).
For services (Part VIII), there are implied guarantees that they will be carried out with reasonable care and skill (s 53), be fit for a purpose you made known (s 54), be completed within a reasonable time (s 55) and be charged at a reasonable price where none was agreed (s 56).
Misleading conduct and unfair practices
Part II bans misleading and deceptive conduct (kelakuan mengelirukan), including:
- conduct likely to mislead the public about goods or services (s 9);
- false or misleading representations about kind, standard, quality, grade, quantity, history, whether goods are new or reconditioned, sponsorship or approval, and similar matters (s 10);
- misleading price indications, such as false "was/now" sale prices (s 12);
- bait advertising of goods the trader does not have in reasonable quantities (s 13);
- offering gifts or prizes without intending to provide them (s 14);
- taking payment without intending to supply (s 16).
Penalties (s 25): a company can be fined up to RM250,000 (up to RM500,000 for a repeat offence); an individual up to RM100,000 or jail up to 3 years, or both (up to RM250,000 or 6 years for a repeat offence). The court can also order ancillary relief, such as refunds (s 29).
Unfair contract terms (Part IIIA)
Part IIIA was added by an amendment in 2010. A court or the Tribunal can find a contract or term:
- procedurally unfair (tidak adil dari segi prosedur) (s 24C): unfair because of how it was made, considering for example the consumer's understanding, relative bargaining power, whether it was a standard form, whether it could be negotiated, and whether it was in fine print or hard to understand; or
- substantively unfair (tidak adil dari segi substantif) (s 24D): the term itself is harsh, oppressive or unconscionable, or it excludes liability for negligence or for breach of the contract without adequate justification.
Where a term excludes or restricts the supplier's liability or the consumer's rights, the supplier relying on it must prove it has adequate justification (s 24E). An unfair term can be declared unenforceable or void (s 24G). Contravening Part IIIA is also an offence, with the same penalty ranges as s 25 (s 24I).
Shopping online
The Consumer Protection (Electronic Trade Transactions) Regulations 2012, in force since 1 July 2013, require anyone selling goods or services through a website or an online marketplace to show, on the page where they do business: their name or business name, registration number (if any), email and telephone number or address, a description of the main characteristics of the goods or services, the full price including delivery, taxes and other costs, the payment method, terms and conditions and estimated delivery time. Failing to disclose, or giving false information, is an offence. Sellers must also let you correct input errors before you confirm the order and must acknowledge your order.
Online purchases carry the same implied guarantees as purchases in a shop.
Tribunal for Consumer Claims
Part XII sets up the Tribunal for Consumer Claims Malaysia (Tribunal Tuntutan Pengguna Malaysia, TTPM), a cheap and quick alternative to court.
- Limit: claims up to RM50,000 (raised from RM25,000 by the 2019 amendment) (s 98). A larger claim can be heard if both parties agree in writing (s 100). A claim cannot be split to fit under the limit (s 102).
- Time limit: the cause of action must have arisen within 3 years of the claim (s 99(2)).
- Excluded: claims about land, wills and inheritance, goodwill, intellectual property and matters that another tribunal handles (s 99(1)).
- No lawyers may represent parties at the hearing (s 108). Companies send an employee.
- Filing: Form 1, with a RM5 fee, at a Tribunal office or online.
- Award: where practicable within 60 days from the first hearing day (s 112). The Tribunal can order payment, replacement, repair, refund, compensation for financial loss, or variation or cancellation of the contract. It cannot award damages for non-financial loss such as distress.
- Enforcement: awards are final and binding (s 116). Not complying within 14 days is an offence, punishable by a fine of up to RM10,000 or jail up to 2 years or both (s 117, as amended in 2019).
See also Tribunals and Small claims.
Laws cited on this page
| Act 136 | Contracts Act 1950 Ā· Akta Kontrak 1950 | Official text |
| Act 382 | Sale of Goods Act 1957 Ā· Akta Jualan Barang 1957 | Official text |
| Act 599 | Consumer Protection Act 1999 Ā· Akta Perlindungan Pengguna 1999 | Official text |
Listed automatically from the federal Acts named on this page. All laws of Malaysia ā
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 2 | Applies to goods and services supplied to consumers in trade, including online; lists exclusions such as land, securities and regulated professional services. |
| s 3 | Defines "consumer": buys for personal, domestic or household use, not mainly for business. |
| s 6 | No contracting out; a supplier who tries commits an offence. |
| s 10 | Bans false or misleading representations about goods and services. |
| s 12 | Bans misleading indications as to price. |
| ss 24Cā24D | Tests for procedurally and substantively unfair contract terms. |
| s 25 | Penalties for breaching Parts II and III: companies up to RM250,000 (first offence). |
| s 32 | Implied guarantee of acceptable quality. |
| s 41 | Consumer's options when goods fail a guarantee: repair, reject, or compensation. |
| s 53 | Implied guarantee that services are performed with reasonable care and skill. |
| s 98 | Tribunal's jurisdiction: claims up to RM50,000. |
| s 99 | Excluded matters and the 3-year time limit. |
| s 108 | No lawyers at Tribunal hearings. |
| s 112 | Tribunal awards and the orders it can make. |
| s 117 | Offence of failing to comply with an award within 14 days. |
Worked examples
Facts. Nurul buys a RM1,800 washing machine from an electrical shop in Seremban. After two months the motor fails. The shop says the 1-year warranty is the manufacturer's problem, not theirs.
The law. The supplier gives an implied guarantee of acceptable quality, including durability (s 32), and cannot contract out of it (s 6). Under s 41 Nurul can require the shop to repair the machine within a reasonable time, or reject it if the failure is substantial or the shop fails to fix it.
Outcome. Nurul should write to the shop demanding repair. If refused, she can file at the Tribunal for Consumer Claims (RM5 fee) for repair, replacement or a refund.
Facts. An online fashion store shows dresses "was RM300, now RM90" but has never sold them at RM300.
The law. This is a misleading indication as to price (s 12) and a false representation (s 10). A company can be fined up to RM250,000 for a first offence (s 25). The store must also display full prices and business details under the 2012 e-commerce regulations.
Outcome. Consumers can report the store to KPDN. Any buyer who suffered loss may also claim at the Tribunal.
Facts. Mr Lim signs a 2-year gym contract on a tablet. Buried in tiny print is a clause saying he must pay all remaining fees even if the gym closes his branch.
The law. The clause may be procedurally unfair (fine print, standard form, no chance to negotiate: s 24C) and substantively unfair (harsh and one-sided: s 24D). Because the clause excludes the consumer's rights, the gym must show adequate justification for it (s 24E).
Outcome. The Tribunal can declare the clause unenforceable and order a refund of fees paid for services not received.
Facts. Kavitha pays a contractor RM12,000 to renovate her kitchen. He completes half the work badly and stops answering calls.
The law. Services must be carried out with reasonable care and skill and completed in a reasonable time (ss 53, 55). Taking payment without intending to supply is also an offence (s 16).
Outcome. Kavitha can file at the Tribunal within 3 years for a refund or the cost of putting the work right, which is within the RM50,000 limit.
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
The shop says "no refund, no exchange". Is that legal?
Such a notice cannot remove your rights under the Act (s 6). If goods are faulty or not as described, you still have the guarantees in ss 31ā37 and the remedies in s 41. A shop does not have to refund you simply because you changed your mind.
Does the Act protect me if I buy for my business?
Generally no. A "consumer" buys for personal, domestic or household use (s 3). Business purchases are governed mainly by the Contracts Act 1950 and the Sale of Goods Act 1957.
How much can I claim at the Tribunal for Consumer Claims?
Up to RM50,000 (s 98, since 2019). More can be heard if both sides agree in writing (s 100). Your claim must be filed within 3 years of the cause of action (s 99(2)).
Can I bring a lawyer to the Tribunal?
No. Section 108 bars lawyers from representing parties at hearings. You present your own case; companies are represented by an employee.
What if the seller ignores the Tribunal's award?
Not complying within 14 days is a criminal offence, punishable by a fine of up to RM10,000, jail up to 2 years, or both (s 117). Report the non-compliance to the Tribunal so it can be enforced.
Is there a cooling-off period for online purchases?
There is no general right to cancel an online purchase just because you changed your mind. Some direct-sales contracts have a cooling-off period under a separate law, and faulty or misdescribed goods are covered by the guarantees.
All questions & answers ā Ā· Ask your own ā
Sources
- Consumer Protection Act 1999 (Act 599), KPDN copy of the reprint
- Consumer Protection Act 1999, consolidated text (FAOLEX)
- Consumer Protection (Amendment) Act 2019 (Act A1598)
- Consumer Protection (Electronic Trade Transactions) Regulations 2012
- TTPM ā Filing procedure (Form 1, RM5 fee)
- Skrine ā Unfair contract terms under the 2010 amendment
Related
Consumer rightsTribunals and alternatives to courtSmall claims (RM5,000 and below)Contracts Act 1950Personal Data Protection Act 2010