Brief Overview of the Consumer Protection Act 1999 of Malaysia

The primary legislation in Malaysia providing for protection of consumers of goods and services is the Consumer Protection Act 1999 (“CPA”). The CPA safeguards consumers interest when dealing with manufacturers or suppliers by ensuring that manufacturers or suppliers comply with their responsibilities in the CPA to avoid any liability.

Goods, Services and Consumers

The term “goods” is defined in the CPA to mean any good purchased, used or consumed for personal, domestic or household purposes; this includes tangible items in real or personal property, animals, vessels, vehicles and plants. 

The term “services” is defined to mean rights, benefits, privileges or facilities under any sort of contract. However, services do not include rights, benefits or privileges in the form of the supply of goods or a performance of work under a contract of service. 

The CPA defines “consumer” as a person that receives or uses goods or services for personal, domestic or household purposes, use or consumption, and not for, amongst others, resupplying goods or services for trade. 

Choice of Law and Contracting Out

As per Section 4 of the CPA, it shall have effect notwithstanding that any term of a contract which applies the law of another country, meaning that even if the governing law of the contract entered by the consumer with the supplier, manufacturer or producer of goods or services is the law of another country, the CPA shall still have effect. 

Further, according to Section 6(1) of the CPA, it shall have effect notwithstanding anything to the contrary to any agreement and/or contract. Accordingly, the CPA also prohibits manufacturers and suppliers from contracting out of the provisions thereof as can be inferred from Section 6(2) of the CPA.

Misleading and Deceptive Conduct, False Representation

To ensure adequate protection to consumers, the CPA stipulates that no person shall engage in misleading or deceptive conduct which may mislead or deceive the public in relation to nature, characteristics, manufacturing process, suitability, availability, quantity etc. of goods or services. Likewise, false representations, misleading indication as to price and bait advertising are also prohibited.

Compliance with Safety Standards

The CPA addresses safety concerns for the consumers by stipulating that no person shall supply or offer to advertise to supply goods or services which do not comply with safety standards prescribed by the Minister of Domestic Trade and Costs of Living.

Conclusion

The CPA serves as a vital framework to safeguard consumer rights, ensure fair trade practices, and promote consumer confidence in the marketplace. In addition to the provisions discussed above, the CPA also contains provisions addressing unfair contract terms, credit sale transactions, implied and express guarantees, consumer's rights against suppliers and manufacturers and product liability.