PM tepi: A Mistake Most Malaysian Online Sellers Are Making


If you sell your product online in Malaysia, you must read this.

That includes all online ecommerce websites and online B2B marketplaces, even the ones on marketplace platforms like Shopee, Lazada, TradeMalaysia, Facebook, 11street, and so on. This affects all ecommerce sellers in Malaysia. 

Most online suppliers in Malaysia have done this before. And you’ve definitely noticed it online before.

Any guesses about what it is exactly? 

It’s the dreaded “PM tepi” phrase!

Check on Facebook and Malaysia Business Directory now and you’ll get a lot of online sellers who hide the prices and sometimes even the product details.

Customers having interest in buying their products are asked to contact them through a private message (PM) to get further information on the product/service sold and the price.

This type of practice is rampant in Malaysia’s online selling scenario.

But do you know that hiding the product/service price and info  is actually illegal in Malaysia?

This also is not considered as a good business practice as it will never give your customers a great shopping experience, because you’re adding a 2nd layer for them to go through before they can make their purchase.

So, why is “PM tepi” illegal in Malaysia?

 

It all comes down to providing better consumer rights protection in Malaysia.

This was officially supported by Datuk Mohd Roslan Mahayudin, the Enforcement Director of the Ministry of Domestic Trade, Cooperatives and Consumerism (MDTCC), mentioned in an article by the New Straits Times back in August 2017:

 

“We are fully enforcing this law after having relaxed on this to allow traders to adjust accordingly,” Roslan said.

“We want consumers to be better covered… Their rights must be protected, and they must be able to make informed purchasing decisions with details on prices, the products and services, who they are dealing with and hidden charges at their fingertips.

“So, if a person is selling a cat, for example, he must display the price he wants for it… He cannot simply say ‘private message if interested’… Not anymore.”

This actually started way back in 1977 when the Price Control Order (Indication of Price by Retailer) was brought with requirements for price tagging. The legislation was later replaced by the Price Control Order (Indication of Price by Retailer) in the year 1993. It simply covers all types of goods sold in retail.

Then as ecommerce started booming in the 2010s and online cheating cases have gone up, so to tackle this, the Malaysian government brought the Consumer Protection (Electronic Trade Transactions) Regulations 2012 (“Regulation”), a regulatory law under the Consumer Protection Act 1999. This regulation is specially to curb errant online sellers and to also protect consumers who buy online in Malaysia.

What information should online sellers share with their products to customers in Malaysia?

 

Under the Consumer Protection Act 1999, B2C online sellers  and also B2B Suppliers are required to clearly share the information details of their product/service on their website: 

1.   Full price of the products/services

2.   Business owner name

3.   Business or company registration number

4.   Contact information of person running the business (email, phone number, or address)

5.   Product description

6.   Payment method

7.   Terms and conditions

8.   Estimated delivery time

What are the penalties and punishments of omitting product details online in Malaysia?

 

Suppliers or sellers can be fined or jailed if they do not abide by the Consumer Protection (Electronic Trade Transactions) Regulations 2012 (“Regulation”) in Malaysia. The penalties for individual online suppliers or sellers and companies selling online  in Malaysia are as below:

First time offence (Individual)

·       Up to RM50,000 fine or 3 years jail or both

Second or subsequent offence (Individual)

·       Up to RM100,000 fine or 5 years jail or both

First time offence (Company)

·       Up to RM100,000 fine

Second or subsequent offence (Company)

·       Up to RM200,000 fine

 A fine of up to RM1, 000 will be imposed on any person or company each day the offence continues after the conviction.

That’s quite heavy stuff, huh?

So always keep in mind,  be careful and always ensure that you’re displaying all the required details for your products you are selling online on online B2B marketplaces or Malaysia Business Directory.

Don’t ask your customers to PM you for more information. That decreases your customer experience, which also decreases your sales potential.

 

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