TOPIC 3 :

CONSUMER
REDRESS
CONSUMER LAW DIL2236
Generally, redress mechanisms available for consumers in Malaysia
to resolve disputes and to seek compensation include:
a. The court system
b. The Tribunal for Consumer Claims
c. The Tribunal for Housebuyer Claims
d. Alternative Dispute Resolution
3.1 Consumer advice and
assistance

3.2 Consumer redress in civil and

criminal proceedings

3.3 Consumer redress under trade

association code of practice.

3.4 Case law in consumer

protection
3.1 CONSUMER ADVICE
AND ASSISTANCE
 Steps &
Guidelines
 As a
consumer:
As business
owner:
Advise &
assistance
by
government:
Consumer Complaints
◦ To receive complaints from the complainant through telephone, website, letters and walk-in to Consumer Complaint Management
Centre (CCMC).
◦ The complaint will be channelled to the respective agencies. Please take note that not all complaints received are under the
Ministry’s jurisdiction to be resolved.
◦ Users are often misled by:
 Fraudulent Services
 Fraudulent Pricing
 Internet Transaction Fraud
 Sales of Petroleum Substances
 No Price Tag
 Motor Vehicle Workshop
 Telecommunications Services
 Scams Scratch and Win
 Fraudulent Hire Purchase Agreement
 Malpractice of Direct Selling
3.2 CONSUMER REDRESS IN
CIVIL AND CRIMINAL
PROCEEDINGS
◦ Section 39-42, when the goods fail to comply with the implied guarantee as to acceptable quality or when
the goods fail to comply with the implied guarantee as to the description or the material description
applied to the goods by or on behalf of the manufacturer, or fail to comply with the implied guarantee as
to repairs and spare parts.
◦ Sections 50-55 further state the consumer‟s right to redress against manufacturers.
◦ Legal means for consumers to seek redress are appropriately set through the establishment of the Tribunal
of Consumer Claims (TCC) under the CPA (Section 85).
◦ The Tribunal has nationwide jurisdiction to hear and determine disputes between consumers and traders.
◦ Consequently, with the powers conferred under Section 22, the minister establishes the terms and
procedures for consumer disputes and claims handling in all states throughout the country under the
Consumer Protection (Tribunal for Consumer Claims) Regulations 1991.
◦ This mechanism enables consumers to legally claim for rightful compensation at a minimum charge of
RM5, and to be heard, without the presence of lawyers, by a qualified judge who can ensure just and fair
outcomes.
◦ Under Section 112, the Tribunal may make awards within 60 days from the first day the hearing. The Tribunal can make the following
orders:
(a) A party to the proceedings pays money to any other party;
(b) The goods be supplied or re-supplied as per the Act or the contract to which the consumer is a party;
(c) The goods supplied or re-supplied to the consumer be replaced or repaired;
(d) The price or other consideration paid or supplied by the consumer or any other person is refunded to the consumer;
(e) A party complies with the guarantee;
(f) Money is awarded to compensate for any loss or damage suffered by the claimant;
(g) The contract be varied or set aside, wholly or in part;
(h) The costs to or against any party be paid;
(i) The interest be paid on any sum or monetary award at a rate not exceeding 8% a year, unless it has been otherwise agreed between the
parties; and
(j) The claim is dismissed.

◦ Under Section 117, failure to comply with the Tribunal‟s award is an offence and upon conviction, the person is liable to a fine not
exceeding RM5,000 or to a jail term not exceeding two years, or both. In cases of continuing offence, the offender is liable to a fine not
exceeding RM1,000 each day.
Small Claims Court
◦ Aggrieved consumers whose claims do not exceed RM5, 000 can resort to the Small Claims Procedure of
the Magistrate’s Court which was set up in 1987. The party pursuing the claim must be an individual and
not a company (or an agent or assignee of debts, etc.).
◦ The unique features of this court are that cases are heard in a cheap, easy and quick manner, and neither
party can be represented by a lawyer, except in cases where the defendant is a registered company. The
plaintiff himself does everything, guided by court staff.
◦ The Magistrate’s judgement is final and no appeal to a higher court can be made by either party, unless it
is on a point of law.
◦ Among the claims heard by the Small Claims Court include:
◦ Refund of money that is paid for goods that turn out to be faulty;
◦ Refund of wages or salaries paid for work not done;
◦ Claims for unpaid commissions, payment of services provided, facilities supplied, or repairs carried out.
◦ Claims for recovery of debts or liquidated demands.
Tribunal for Consumer Claims Malaysia
◦ It was set up as a simple, cheap and fast alternative channel for consumers to claim losses not
exceeding RM25, 000 connected with goods purchased or services obtained from traders or
service providers.
◦ Prior to this, all disputes between consumers and traders, suppliers or manufacturers of goods
or service providers were brought to the civil courts.
◦ This meant complicated and time consuming procedures, and high costs, resulting in
consumers’ reluctance to pursue their claims against irresponsible and unethical traders,
suppliers, or manufacturers of goods or service providers in civil courts, especially when the
amount claimed was small.
◦ This was although there are in every state Small Claims Courts to hear claims of not more
than RM5, 000.
◦ The Tribunal’s jurisdiction also covers: Any claim:
in respect of any goods or services for which no redress mechanism is provided for under any other written law;
and
based on a cause of action which accrues within three years of the claim.

◦ The Tribunal has no jurisdiction to hear:

a. any claim arising from personal injury or death;
b. any claim for the recovery of land or any estate or interest in land;
c. any dispute in respect of title of any land or estate or interest in land
d. any dispute concerning the entitlement of any person under a will or on any intestacy;
e. any dispute on matters regarding franchise, goodwill , trade secrets or other intellectual property and any
cause in action
f. where any other tribunal had been established under any other written law to hear and determine claims
on matters which is the subject matter of such claim.
 3.3 CONSUMER REDRESS
UNDER TRADE ASSOCIATION
CODE OF PRACTICE
Consumer Associations and Organisations
◦ To support the initiatives of the government, consumer associations and organisations have
also played critical roles in keeping a check-and-balance on consumer issues and policies in
the country.
◦ They are also active in conducting consumer education and awareness programmes at state and district
levels.
◦ Among these are the:
◦ Federation of Malaysian Consumer Associations (FOMCA),
◦ Consumers Association of Penang (CAP),
◦ Muslim Consumers Association of Malaysia (PPIM),
◦ Malaysian Consumers Protection Association (PPPM),
◦ Malaysian Consumer and Family Economics Association (MACFEA),
◦ Kuala Lumpur Consumers Safety Association (PKP)
◦ and various other state consumer organisations.

◦ Encouraged by the government, consumer organisations also play an important role in

promoting consumer protection in Malaysia, through grants, smart partnerships and joint
programmes.
3.4 CASE LAW IN
CONSUMER
PROTECTION
http://www.nccc.org.my/v2/
1. Products or services that are misleading, false
representation and unfair practice

◦ Part II of the Consumer Protection Act 1999 refers to Misleading And Deceptive Conduct,
False Representation and Unfair Practice by sellers or business owners.
◦ Let’s make it simple. This section basically talks about an advertisement or promise made to
consumers but doesn’t turn out to be as promised at the end of the bargain.
◦ For example, an advertisement saying the car being sold is a brand new car when in reality, it’s
actually a used car. The seller misled you to believe that the car was brand new and in good condition
when in truth, it wasn’t. This could’ve been an honest mistake or done knowingly. Business owners
who mislead consumers can be fined up to RM250,000.
◦ When faced with situations like this, you can usually speak to the seller and ask for a
replacement, but if they refuse to comply, you can drop an email and follow through with
TTPM.
2. Goods and services that don’t comply with
set safety standards
◦ Goods and services must comply to safety standards set by the ministry. Part III, Section 19 of
the Consumer Protection Act 1999 states that the minister sets the standards based on
recommendations and consultations with relevant and competent agencies.
◦ It’s unacceptable to sell goods or services that have failed to passed the safety standards set.
◦ For example, you buy a hair dryer and get electrocuted after using it for the first time. You bring it
back to the shop you got it from and ask for a replacement as the hair dryer comes with a one year
warranty. You get a replacement, only to realise that the new one is faulty too.
◦ The best way to deal with this issue would be to clarify the problem with the seller and if that
fails, an official complaint for claims can be sent to TTPM. Vendors that are caught selling
products that do not comply to set safety standards can be fined up to RM250,000.
 3. When the supplier makes guarantees about the quality,
pricing, repair, spare parts that they don’t comply to
◦ Part V of the Consumer Protection 1999 stated that every goods and services supplied must be guaranteed in
respect of satisfactory quality, purpose, description, price, repair and spare parts.
◦ For example, selling a washing machine that is not working is clearly in violation of the prohibition of the faulty
goods sales rule and it’s not fit for the purpose of the consumer. However, suppliers and sellers have the tendency
to paint a very pretty picture of the product or service they sell which is understandable, as it is part of the
marketing process. But, some overeager sellers make guarantees to which they cannot live up to.
◦ As a consumer, you have the right to receive fair judgment which includes compensation for your purchase of
goods or services received that had a misleading trade description, was of poor quality or if you received
unsatisfactory services. You can submit a claim for compensation to the Tribunal For Consumer Claims Malaysia.
◦ Aside from that, make sure you keep all types of documentation pertaining to your purchase or service received
from the trader who you’re seeking claims from as it will be required for evidence purposes. The usual evidence
which will be required are receipts, invoices, advertising materials, flawed products and brochures or any other
type of documents or materials which would help your complaints case.
 4. If you were promised free gifts, they MUST be given to you
◦ Free gifts with purchases are pretty common in the market, whether its offered by the supermarket/store or the manufacturers
themselves. It’s especially common with toothpaste purchases, it seems. Over the years the purchase of toothpaste has been
accompanied by free bowls, plates, cutleries, and mugs. Did you know that if these free gifts are advertised, you are entitled to
them?
◦ This is provided under section 14(1) of the CPA.
(1) No person shall offer any gift, prize or other free item -
(a) with the intention of not providing it; or
(b) with the intention of not providing it as offered.

◦ The promisor of the gift has to also give the gift as it was offered. If they offered a free cup, and they want to now give you a free
plate, it’s a no-go unless you agree to accepting the plate as a substitute gift. 
◦ If a free gift is advertised, but the price of the actual product you wanna buy is jacked up, or the quality of the product is
lowered, to cover for the cost of the gifts, that’s not allowed either under section 14(2).
◦ But there’s a catch. There’s always a catch with free gifts. Section 14(3) allows for the store or the manufacturer to
impose reasonable conditions on the offer of gifts. This is where you will see that small asterisk (*) and it says that the gift is
“available while stocks last”. It’s reasonable because they won’t have an infinite supply of the gift.
 5. You can expect goods to be of a reasonable quality
◦ We sometimes take it for granted that stuff we buy are of a certain level of quality. What we don’t realize
is sometimes manufacturers can be so cheap that the end product comes out unusable. Imagine buying a
USB cable to charge your phone, and finding out later that it doesn’t work.
◦ The CPA provides for these sort of situations as well. Section 32 of the CPA:
(1) Where goods are supplied to a consumer there shall be implied a guarantee that the goods are of acceptable
quality.
◦ Goods must be of acceptable quality. What is acceptable quality, really? The criteria for goods of
acceptable quality are listed in sections 32(2)(a) and (b). It’s quite a long list, and among the criteria are:
◦ fit for all the purposes for which goods of the type in question are commonly supplied
◦ acceptable in appearance and finish
◦ durable
◦ safe
◦ free from minor defects
6. Sample cannot be different from the actual product
◦ Showing sample units of products is a very common marketing technique used widely.
Supermarkets have samples of food and drinks, electric appliance stores have samples of
various products, and phone stores have samples of… phones. It only makes sense that the
actual product would correspond with its sample. 
◦ Section 35 of the CPA:
(1) The following guarantees shall be implied where goods are supplied to a consumer by reference to a
sample or demonstration model:
(a) that the goods correspond with the sample or demonstration model in quality; and
(b) that the consumer will have a reasonable opportunity to compare the goods with the sample or
demonstration model.
◦ Consumers must also be given a chance to compare between the sample or display unit and
see if there are any discrepancies. If the goods come with a description, for example: The new
iPhone 8 comes with 16 GB RAM, then the product must have the corresponding amount of
RAM.
 7. Manufacturer must honor express guarantees/warranties
◦ Section 38 of the CPA guarantees your manufacturer guarantee, but what is manufacturer’s guarantee? It’s what is commonly
known as the warranty of a product.
◦ Section 38 of the CPA: 1) An express guarantee given by a manufacturer of goods which are supplied to a consumer shall bind
the manufacturer to the extent specified in subsections (2), (3) and (4).
◦ An express guarantee given by a manufacturer is binding. That means whatever the warranty that was given to the consumer, for
example if your phone malfunctions within a certain amount of time, usually 1 year, the manufacturer will either make a 1 to 1
exchange, or repair it for free, must be honoured. This paper or booklet binds the manufacturer to obey the terms of the
guarantee… unless it was given without their authority, like say if it was stolen.
◦ Section 38(5) does define the scope of “express guarantee” a little more specifically. What does an express guarantee cover? It
covers:
 quality, performance or characteristics of goods
 services provided regarding the goods
 supply of parts for goods
 future availability of goods, if such a term was made
 return of money or other considerations should the goods not meet the standards set by the guarantor

◦ The scope is pretty comprehensive, covering things from quality to future availability of goods. Another plus side for consumers
is: if the manufacturer messes up with their product, you are entitled to a refund or other considerations (a replacement product, et
cetera).
8. You can get a refund for rejected items
◦ In the CPA, the refunding of money or a replacement of product is covered under sections 45 and 46 of
the CPA. Usually, a consumer has to reject the goods to get a refund or a replacement. It wouldn’t make
sense if you want to keep the product, and want a refund or replacement.
◦ Section 45(1) of the CPA:
(1) The consumer shall exercise the right conferred under this Act to reject goods by notifying the supplier of the
decision to reject the goods and of the ground or grounds for the rejection.
◦ This means a consumer can reject goods if they tell the supplier that they want to do so, and why they
want to do so. A simple example is if you’ve bought an article of clothing that is the wrong size. If the
store allows it, you can just bring it back with the tags and receipt, and exchange it for the right size. 
◦ What if lets say, you buy an electronic gate from a gate store, have it installed and later you find out that
it doesn’t work? Do you have to remove the gate from where it was installed, stuff it into your sedan and
drive it back to the store? It’s crazy because you don’t have to tools to remove the gate out of it’s place,
and you’re not a professional. You don’t have to, according to section 45(2)(b). The seller will have to
come and uninstall it at their own expense.
◦ Onto the actual subject of a refund or replacement. This is provided under section 46(1).
◦ Section 46(1) of the CPA:
(1) Where the consumer exercises the right to reject goods conferred under this Act, the consumer may
choose to have -
(a) a refund of any money paid or other consideration provided by the consumer in respect of the
rejected goods; or
(b) goods of the same type and of similar value to replace the rejected goods where such goods are
reasonably available to the supplier as part of the stock of the supplier, and the supplier shall make
provision accordingly
◦ To simplify, if you’ve rejected the goods, you can choose to either get a refund of money,
other consideration (maybe a guarantee of free repairs in the future) or an exchange of the
same type of goods that is similar in value. You can’t buy a Huawei and exchange it for an
iPhone, because the values are drastically different.