NEWTON INTERNATIONAL COLLEGE

NOVEMBER-FEBRUARY 2023
DEM 1243 INTRODUCTION TO CIVIL LAW
GROUP ASSIGNMENT II

TITLE
MALAYSIA'S CONSUMER PROTECTION ACT 1999
_____________________________________________________
GROUP MEMBERS:

STUDENTS NAME BATCH ID NUMBER

1. Yokieshnthawary A/P Yokieswaran 27A DEM0622344
2. Neeresh Kumar A/L Sri Devan 27A DEM0622101
3. Sharvindvarma A/L Subramaniam 27A DEM0622129
4. Suriya Moorthy A/L Suresh 27A DEM0622084
5. Kumaran A/L Visunathan 27A DEM0622103
6. Sashirekha A/P Nalarajan 27A DEM0622290

SUBMITTED TO:
MISS PREMA
TARIKH HANTAR:
16TH DECEMBER 2022

TABLE OF CONTENT
Bil Tittle Page
Number

1) 1.0 Introduction To Malaysia's Consumer Protection Act 1999 1

2) 1.1 Background Of Consumer Protection Act 1999 2-3

3) 2.0 The Powers For Tribunal For Consumer Claims Malaysia 4

4) 2.1 Jurisdictions For Tribunal For Consumer Claims Malaysia 5

5) 2.2 Procedures For Hearing For Tribunal For Consumer Claims 6

Malaysia

6) 2.3 Awards And Decisions For Tribunal For Consumer Claims 7

Malaysia

7) 3.0 Issues Faced By The Consumers 8

8) 4.0 Conclusion 9

9) 5.0 Table Of Contribution 10

10) 6.0 Reference 11

1.0 Introduction To Malaysia's Consumer Protection Act 1999
The Malaysian Consumer Protection Act of 1999 is a piece of legislation that
aims to give customers more protection. It offers a less expensive alternative to
specific types of consumer relief and complaints. In addition to the Contract Act of
1950 and the Sales of Goods Act of 1957, this Act takes precedence. If anything is
covered by CPA 1999, it will take effect. Consumer Redressal Tribunal will accept
claims from aggrieved consumers for less than RM10000.

Consumer protection is offered by this law. False representations and unfair

practises that have the potential to mislead consumers are prohibited by the Act.
Additionally, it defines unfair contract clauses and criminalises violations of these
clauses. The Act establishes rights against suppliers and manufacturers in relation to
guarantees in the provision of goods and services as well as guarantees in the supply
of goods and services. The Act also establishes the Tribunal for Consumer Claims, the
Committee on Advertisement, and the National Consumer Advisory Council.

This Act is applicable notwithstanding of any contract clause that applies or

pretends to apply the laws of another nation if the court determines that the clause was
imposed primarily or exclusively to allow the party imposing it to avoid the
application of this Act.

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1.1 Background Of Consumer Protection Act 1999

The Malaysian government has placed a high focus on consumer welfare and
protection as part of its national development plan since since British colonial rule
came to an end. Malaysia's economy was mostly centred on agriculture in the early
years of independence. The majority of the impoverished lived in rural areas, which
were home to 70% of the population. In order to provide for fundamental
requirements such shelter, food, access to water and sanitation, health, and education,
consumer welfare centred on these areas.

Early consumer protection legislation like The Price Control Act of 1946 and
The Control of Supplies Act of 1961 emphasised the need to restrain prices and
inflation as well as to guarantee access to the most basic commodities. In the 1970s,
the government's modernization drive and capital-intensive economic growth got off
the ground. The consumer demographics were altered by this pattern of development,
which also facilitated the growth of a sizable urban middle class. Consumption of
goods and services increased dramatically and in direct proportion to rising incomes.
Where there were no defined norms and standards for goods and services, consumers
and businesses started exploring new territory.

As a result, the government introduced consumer protection statutes,

strengthened institutional capacity to ensure the enforcement of consumer protection
laws, and recognised the significance of the 1985 United Nations Guidelines for
Consumer Protection. However, it was the establishment of the Domestic Trade and
Consumer Affairs Ministry, or MDTCA, in 1990 that significantly improved
Malaysian consumer welfare and protection. In the age of globalisation, more human
and financial resources were made available to enhance consumer welfare and
protection after half of a ministry was established for that purpose.

Legislation and The Consumer Protection Act 1999 are two significant turning
points in Malaysia's growth of consumer welfare and protection over the past 50
years. The colonial administration introduced a number of consumer protection
legislation prior to independence, including the Price Control Act of 1946 and the
Medicines Act of 1956. Since Merdeka, the government has realised that better
consumer protection requires particular legislation. There are currently more than 30
statutes that include provisions for consumer protection.

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 The MDTCA enforces a few of these laws, including the Control of Supplies
Act 1961, Hire Purchase Act 1967, Trade Descriptions Act 1972, and the Direct Sales
Act 1997. The caveat emptor concept, which lays the onus on the customer to avoid
being duped in any transaction, was the foundation for many of these 30 statutes
relating to the sale of products and provision of services. Following 15 years of
pressure by consumer organisations, the government finally passed more thorough
consumer protection legislation to remedy these flaws. Nov. 15, 1999 was the
effective date of the Consumer Protection Act of 1999.

Aggrieved consumers can seek redress through a number of institutional

processes that the government has established. The Tribunal for Consumer Claims
comes first. The CPA 1999's most active organisation is this one. Each year, the
tribunal gets more than 5,000 claims. The second is The Small Claims Court,
established in 1987, which caps claims at RM5,000. The third is the Financial
Mediation Bureau and other industry-initiated Ombudsmen Schemes for Banking and
Insurance. The Tribunal for Homebuyers Disputes is the last option.

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2.0 The Powers For Tribunal For Consumer Claims Malaysia

The Consumer Protection Act 1999 [Act 599]'s Section 85, Part XII,
established the Tribunal for Consumer Claims. The Ministry of Domestic Trade and
Cost of Living oversees the Tribunal. The Tribunal for Consumer Claims (the
"Tribunal") was established by the Parliament in recognition of the possibility that the
legal system would be too intimidating or expensive for the general people to seek
redress against unethical suppliers or manufacturers. The Tribunal is an impartial
organisation created to hear and decide on consumer claims made in accordance with
the CPA 1999. Due to the lack of legal representation and the simplicity of the
procedures, customers can obtain their remedy quickly and easily.

The TCC's main goal is to handle only "simple" and "small" consumer
complaints. Certainly, issues like intellectual property, franchises, and estate claims
are fairly complex. Similar to this, a personal injury or wrongful death claim might
not be resolved effectively and promptly through a streamlined process. On the other
hand, the exclusion has the result of restricting the TCC's ability to handle specific
issues that fall under the purview of the CPA. Regarding product liability cases,
which typically include personal injury, this is especially important. Additionally,
only claims founded on causes of action that accrue within three years of the claim are
subject to the TCC's jurisdiction.

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2.1 Jurisdictions For Tribunal For Consumer Claims Malaysia

The Tribunal for Consumer Claims uses an alternative dispute resolution

("ADR") method that encourages discussion, yet the services offered are nevertheless
deserving of scrutiny. Only claims with causes of action that arise within three years
of the claim are within the purview of the Tribunal for Consumer Claims. It has the
authority to hear and rule on any claim relating to any topic within its purview under
the Act, provided that the total amount of the claim is not greater than RM10,000 and
any other matter prescribed by the Minister by an order made public in the gazette.

Additionally, the Tribunal for Consumer Claims lacks jurisdiction over claims
involving personal injury or wrongful death, the recovery of real estate, an interest in
real estate, or a franchise, disputes over who is entitled to benefits under a will or
settlement, claims involving goodwill, claims involving choices, and claims involving
trade secrets or other intellectual property, as well as claims involving personal injury
or wrongful death, recovery of real estate, claims involving franchises, and claims
involving any of these.

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2.2 Procedures For Hearing For Tribunal For Consumer Claims Malaysia

The secretary or assistant secretary of the Tribunal will issue and serve a
Notice of Hearing in Form 4 detailing the date, location, and time of the Hearing upon
receipt of a claim from the claimant. Unlike a court case, the Tribunal hearing will not
allow for legal representation for either party. The claimant may be represented by a
next friend or guardian if they are a minor or disabled person, or they may choose to
represent themselves. If the respondent is a business or a firm, that person may speak
on its behalf as a full-time paid employee.

If the claimant is a juvenile or has a disability, he or she may be represented

by a guardian or next friend as long as the claimant gives the Tribunal a letter of
authorisation before or during the hearing. A full-time paid employee may speak on
behalf of a respondent, which is a company or firm.

A member of the Tribunal (referred to as "the President") will preside over the
Tribunal hearing. The President's job is to support the parties as they pursue their
claims in an effort to reach a mutually agreeable resolution of the dispute. Every party
to the hearing is allowed to present evidence and call witnesses to support their case,
just as in a courtroom. The general public may attend any Tribunal hearing.

Each party to a hearing before the Tribunal shall have the right to present
evidence, summon witnesses, and present any document, record, or other item in
support of their case. Additionally, all proceedings before the Tribunal shall be
accessible to the public. The Tribunal will typically engage into a consent award at
the hearing to assist the parties in reaching a mutually agreeable resolution of the
dispute.

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2.3 Awards And Decisions For Tribunal For Consumer Claims Malaysia

Where possible, the Tribunal must issue its decision within 60 days of the start
of the tribunal hearing. The Tribunal may order any one or more of the following at a
hearing: that a party pay money to another party; that goods be supplied or resupplied;
that goods supplied or resupplied to the consumer be replaced or repaired; that the
price or other consideration paid or supplied by the consumer or any other person be
refunded to the consumer or that person; that a party comply with the guarantee, that
the contract is modified or set aside, in whole or in part, that costs (not to exceed
RM200.00) be paid to or against any portion, that interest be paid on any sum or
monetary award at a rate not to exceed 8% per year, and that the claim be rejected.

Every agreed-upon settlement that the Tribunal records and every decision it
renders are final and bind all parties to the proceedings. Any party to the proceedings
may seek enforcement of a Tribunal award in a magistrate's court with jurisdiction at
the location of the award, and every award made by the Tribunal shall also be
considered to be an order of a magistrate's court and treated as such. Anyone who
violates a tribunal's ruling after 14 days is guilty of an offence, and upon conviction,
they are subject to a fine of up to 5,000 ringgit (RM 5,000), a term of imprisonment of
up to two years, or both. If the offence continues, the offender is also subject to a fine
of up to 1,000 ringgit (RM 1,000) for each day or portion of a day that the offence
continues.

According to Section 116(1) of the Consumer Protection Act, the Tribunal's

decisions are binding on all parties to the proceedings and are final. But if a party is
unhappy with a Tribunal decision, that party may apply for judicial review in the High
Court, asking the High Court to reevaluate the decision. The High Court stage of the
judicial review process does not involve the Tribunal.

To get a Tribunal award reconsidered, any party who is unhappy with it can
submit a Judicial Review application to the High Court. The Judicial Review process
will not include the Tribunal.

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3.0 Issues Faced By The Consumers

Malaysian consumers face difficulties as we commemorate 50 years of

freedom from colonial authority, including rising prices for products and services as
well as the results of environmental damage. Economic inequality are another effect
of previous economic policies. The privatisation of basic services like water and
health care without providing sufficient protection for consumers from low-income
backgrounds turns back the progress made in consumer welfare over the past 50
years.

Consumer culture has changed significantly during the past 50 years.

Consumers of all income levels are affected by the speeding up of economic and
cultural globalisation. Consumers must be safeguarded in the emerging industries of
information technology, e-commerce, international advertising, cross-border financial
services, and product dumping. The MDTCA must strengthen its research
capabilities, evaluate laws like the CPA 1999, which has substantial gaps, adopt
suitable legislation for product liability and e-commerce, protect individual privacy,
and increase consumer education initiatives in order to meet these difficulties.

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4.0 Conclusion

In conclusion, Malaysian customers who are dissatisfied with their purchases

can file a complaint with the Tribunal for Consumer Complaints. The Consumer
Protection Act of 1999, which became effective on November 15, 2009, established
the tribunal as a neutral body. This page provides a quick overview of the procedure
for presenting a consumer complaint to the Tribunal. Under the Consumer Protection
Act, any customer may register a complaint with the Tribunal if they believe they
have suffered a loss that is related to their rights as consumers. An individual who
buys goods and services for domestic, household, or personal consumption is referred
to as a consumer. Thus, neither organisations nor individuals who buy goods and
services for use in a commercial setting are referred to as "consumers."

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5.0 Table Of Contribution

No Name Id Number Work Done

1. Yokieshnthawary A/P Yokieswaran DEM0622344 -Introduction To Malaysia's

Consumer Protection Act 1999

2. Neeresh Kumar A/L Sri Devan DEM0622101 -Background Of Consumer

Protection Act 1999

-The Powers For Tribunal For

Consumer Claims Malaysia

3. Sharvindvarma A/L Subramaniam DEM0622129 -Jurisdictions For Tribunal For

Consumer Claims Malaysia

4. Suriya Moorthy A/L Suresh DEM0622084 -Pocedures For Hearing For

Tribunal For Consumer Claims
Malaysia

5. Kumaran A/L Visunathan DEM0622103 -Awards And Decisions For

Tribunal For Consumer Claims
Malaysia

6. Sashirekha A/P Nalarajan DEM0622290 -Issues Faced By The Consumers

-Conclusion

10
6.0 Reference

[APA Citation]

1. Donovan & Ho (2014). Frequently Asked Questions on Consumer Claims in

Malaysia. [online] Donovan & Ho, Advocates & Solicitors.
https://dnh.com.my/frequently-asked-questions-on-consumer-claims-in-malaysia/

2. malaysianlitigator.com. (n.d.). Disputes In A World Of Consumerism: Tribunal

For Consumer Claims – Malaysian Litigator. [online]
https://malaysianlitigator.com/2021/02/09/disputes-in-a-world-of-consumerism-
tribunal-for-consumer-claims

3. A
‌ dhikari, B. (2022). A Practical Guide To File A Complaint At Tribunal For
Consumer Claims Malaysia. [online] Conventus Law.
https://conventuslaw.com/report/a-practical-guide-to-file-a-complaint-at-tribunal-for-
consumer-claims-malaysia

4. Al-Sharu, A.I., Mohd Noor, F. and Abdul Rahman, R. (2020). Legal protection

for consumers against misleading advertisements: a case study of Malaysian
consumer protection act 1999; and its lesson to Jordan. [online] etd.uum.edu.my.
https://etd.uum.edu.my/8971

5. www.lawyerment.com. (n.d.). Consumer Protection Act 1999 [Act 599]

SCHEDULE. [online]
https://www.lawyerment.com/library/legislation/acts/1999/599/schedule/1

6. www.ilo.org. (n.d.). Malaysia - Consumer Protection Act, 1999 (Act No.

599). [online]
https://www.ilo.org/dyn/natlex/natlex4.detail?
p_lang=en&p_isn=54121&p_country=MYS&p_count=199

7. Adhikari, B. (2022). A Practical Guide To File A Complaint At Tribunal For

Consumer Claims Malaysia. [online] Conventus Law.
https://conventuslaw.com/report/a-practical-guide-to-file-a-complaint-at-tribunal-for-
consumer-claims-malaysia/

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