Akta Perdagangan Elektronik 2006
Applies to: Federal Act — see s 2 (Application) · Official text ↗
- Applies to commercial transactions via electronic means, including government transactions (s 2(1))
- Excludes transactions or documents specified in the Schedule (s 2(2))
- Defines key terms such as 'electronic', 'electronic message', 'originator' and 'addressee' (s 5)
- Grants legal effect to information in electronic form (s 6(1))
- Allows contracts to be formed and validated using electronic messages (s 7(1))
- Fulfills legal requirements for 'writing' and 'signature' via electronic means (ss 8–9)
- Sets rules for attribution, time, and place of dispatch and receipt (ss 17, 20–23)
- Regulates acknowledgement of receipt for electronic messages (s 24)
What this law is
The Electronic Commerce Act 2006 (Akta Perdagangan Elektronik 2006) is numbered Act 658 in the Laws of Malaysia. Where it applies is set out in section 2 (Application).
Its long title, as printed in the official text: An Act to provide for legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfill legal requirements and to enable and facilitate commercial transactions through the use of electronic means and other matters connected therewith.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–5)
- Part II — Legal recognition of electronic message (ss 6–7)
- Part III — Fulfilment of legal requirements by electronic means (ss 8–16)
- Part IV — Communication of electronic message (ss 17–24)
- Part V — Miscellaneous (s 25)
Part titles are from the official arrangement of sections.
Laws cited on this page
| Act 658 | Electronic Commerce Act 2006 Akta Perdagangan Elektronik 2006 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 2 | The Act applies to commercial transactions conducted through electronic means, including those by the Federal and State Governments, but does not apply to transactions or documents listed in the Schedule. |
| s 5 | Defines terms used in the Act — for example an "electronic message" is information generated, sent, received or stored by electronic means, and the "originator" is the person by whom or on whose behalf it is generated or sent. |
| s 6 | Information cannot be denied legal effect, validity, or enforceability just because it is in electronic form or merely referred to in an electronic message, provided the referred information is accessible. |
| s 7 | Contracts can be formed using electronic messages for proposals, acceptances, and revocations, and such contracts cannot be denied legal effect or validity due to the use of electronic messages. |
| s 8 | If a law requires information to be in writing, this requirement is met if the information is in an electronic message that is accessible and intelligible for subsequent reference. |
| s 9 | A signature requirement is fulfilled by an electronic signature that is attached to the message, identifies the person, indicates approval, and is reliable given the context, with specific reliability criteria listed. |
| s 17 | An electronic message is attributed to the originator if sent by them, by an authorized person, or by an automated system programmed by them, subject to certain exceptions regarding notice or knowledge of fraud. |
| s 20 | Unless otherwise agreed, an electronic message is deemed sent when it enters an information processing system outside the control of the originator. |
| s 21 | Unless otherwise agreed, an electronic message is deemed received when it enters a designated system of the addressee, or when it comes to the addressee's knowledge if no system is designated. |
| s 22 | Unless otherwise agreed, an electronic message is deemed sent from the originator's place of business with the closest relationship to the transaction, or their principal place of business, or ordinary residence if no business place exists. |
| s 23 | Unless otherwise agreed, an electronic message is deemed received at the addressee's place of business with the closest relationship to the transaction, or their principal place of business, or ordinary residence if no business place exists. |
| s 24 | If acknowledgement of receipt is requested, the message is treated as never sent until acknowledged; if no acknowledgement is received within a reasonable time, the originator can give notice to treat the message as never sent. |
Worked examples
Facts. Ahmad, a supplier in Kuala Lumpur, sends an electronic message to Lim, a buyer in Penang, proposing a sale of goods. Lim replies via email accepting the proposal. Both parties use standard email systems.
The law. The communication of proposals and acceptance may be expressed by an electronic message (s 7(1)). A contract shall not be denied legal effect or validity on the ground that an electronic message is used in its formation (s 7(2)).
Outcome. A valid contract is formed between Ahmad and Lim, and it cannot be challenged solely because it was created via electronic messages (s 7(2)).
Facts. Siti, a company director, signs a digital document using a unique code that is linked to her identity and under her control. The system detects any alterations to the signature or document after signing. She uses this to fulfill a legal requirement for a signature.
The law. The signature requirement is fulfilled if the electronic signature is attached to the message, identifies the person, indicates approval, and is reliable (s 9(1)). Reliability is established if the creation means are under the person's control and alterations are detectable (s 9(2)).
Outcome. Siti's electronic signature is legally valid and fulfills the legal requirement for a signature (s 9(1)).
Facts. Ravi sends an electronic message to his client, Farah, and requests an acknowledgement of receipt. Farah does not reply within a reasonable time. Ravi sends a notice stating no acknowledgement was received and specifies a further reasonable time for Farah to acknowledge.
The law. If acknowledgement is requested, the message is treated as never sent until acknowledged (s 24(2)). If no acknowledgement is received within a reasonable time, the originator may give notice specifying a reasonable time for acknowledgement (s 24(4)(a)).
Outcome. Until Farah acknowledges receipt, the message is treated as never sent (s 24(2)). If she fails to acknowledge within the new specified time, Ravi can treat the message as never sent (s 24(4)(b)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Does this law apply to my online business transactions?
Yes, if your transaction is commercial and conducted through electronic means, the Act applies (s 2(1)). It also applies to transactions by the Federal and State Governments (s 2(1)). However, it does not apply to transactions or documents specified in the Schedule (s 2(2)).
Can I use an email as a valid contract?
Yes, proposals, acceptances, and revocations in a contract can be expressed by an electronic message (s 7(1)). A contract cannot be denied legal effect or validity just because an electronic message was used to form it (s 7(2)).
Is an electronic signature legally valid?
Yes, if it is attached to the electronic message, identifies the person, indicates approval, and is reliable given the context (s 9(1)). Reliability includes the signature being under the person's control and alterations being detectable (s 9(2)).
When is an electronic message considered sent?
Unless otherwise agreed, it is deemed sent when it enters an information processing system outside the control of the originator (s 20).
When is an electronic message considered received?
Unless otherwise agreed, it is deemed received when it enters a designated system of the addressee, or when it comes to the addressee's knowledge if no system is designated (s 21).
What happens if I don't acknowledge receipt of an electronic message?
If acknowledgement was requested, the message is treated as never sent until you acknowledge it (s 24(2)). If you don't acknowledge within a reasonable time, the sender can give notice and then treat the message as never sent (s 24(4)).
All questions & answers → · Ask your own →
Sources
Related
Contracts Act 1950Consumer rightsConsumer Protection Act 1999Evidence Act 1950