Updated Regulations for e-Commerce Platforms

The Consumer Protection (Electronic Trade Transaction) Regulations 2024 (the “2024 Regulations”) came into force on 25 December 2024, revoking the Consumer Protection (Electronic Trade Transaction) Regulations 2012 (the “2012 Regulations”).
 
The objective of the 2012 Regulations and 2024 Regulations is to provide for the protection of consumers who purchase goods or services electronically by mandating the disclosure of certain information and imposing specific duties and obligations on e-commerce platforms and sellers.
 
The following summarises some of the salient changes and requirements: 
  • Applicability – 
  2012 Regulations 2024 Regulations
Online marketplace a website where goods or services are marketed by third parties for the purpose of trade any electronic trade platform that is conducted through electronic means by any supplier
Online marketplace operator a person who provides an online marketplace any person who makes available or operates an online marketplace for the purpose of trading or advertising
Online marketplace supplier n/a any person who conducts a trade or advertisement through an online marketplace
  • Mandatory Disclosures – Information to be disclosed by the online marketplace supplier/seller include:
  • Name & contact details (address, email, telephone number, etc.)
  • Appropriate description of the goods
  • Price
  • Method of payment
  • Terms and conditions of sale
  • Estimated delivery time
  • Relevant certification to requisite safety and health standards as prescribed by competent authority (if any)
  • Language requirement –The mandatory disclosures must be in the national Malay language. Translations to other languages are acceptable in addition, but not in substitution, of the disclosures in the Malay language. 
  • Additional Obligations – the 2024 Regulations also make explicit that the online marketplace supplier must (a) bear the cost of redelivery of goods which are materially different or contain defects; (b) provide reasonably fit services, when services are offered and supplied; (c) enable the purchaser to rectify errors; and (d) acknowledge the order without undue delay. 
  • Online marketplace operators’ duties – Meanwhile, the platform operators must now also:
  • Ensure online marketplace suppliers/sellers provide the mandatory information before permitting the conduct of any electronic trade transaction.
  • Make available a channel for purchasers to lodge complaints in respect of electronic trade transactions.
  • Ensure that advertisements supplied by online marketplace suppliers do not contravene the 2024 Regulations. 
Although, by the red letter of the law, these 2024 Regulations have been in force for nearly six months now, news outlets report that the Ministry of Domestic Trade and Cost of Living are holding off enforcement, at least on the national language requirement, for the time being 1 2.
 
Comments
 
Media coverage indicates significant interest in the new national language disclosure requirement. We note at least one major e-commerce platform in Malaysia has announced preparations to roll out an automatic translation tool to assist compliance with the new language requirement.
 
For our part, a major – and welcome – introduction is the requirement to disclose that the goods or services being offered have been certified to the applicable standard of safety and health where one has been set by the competent authority. Over the years, we worked with several associations and companies dealing in regulated items (such as pesticides, poisons, etc.) who have felt the impact of a seeming proliferation of unregulated/illegal counterparts being offered on e-commerce platforms and having to play whack-a-mole in reporting such listings for takedowns.
 
It remains to be seen whether full enforcement of the 2024 Regulations will be announced only after the wider review of e-commerce laws in Malaysia is completed3.
 
Alert by Melissa Long (Partner) and Cheam Tat Sean (Senior Associate) of the Product Law Practice Group of Skrine.
 
 

1 Originally reported to be fully enforced from 24 June 2025 onwards, the date of full enforcement has been set at large yet again according to reports and an update from a major e-commerce platform operator.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.