Latest news with #ConsumerProtectionAct1999
New Straits Times
02-08-2025
- Health
- New Straits Times
High penalties trap consumers in unwanted wellness subscriptions
KUALA LUMPUR: Consumers attempting to cancel unwanted wellness subscriptions are being hit with penalties as high as RM58,000, the National Consumer Complaints Centre (NCCC) said. NCCC senior manager Saral James Maniam said that the RM58,000 penalty applied to just one service. The centre has also received complaints involving digital and media services. She said the NCCC had observed a rise in complaints from consumers who felt trapped by unwanted subscriptions due to excessive delays, steep penalties or complicated cancellation procedures. The centre is preparing a report covering 2019 to 2024 and does not intend to reveal complaint totals until its expected release in November. Saral said, however, that the figures were alarming. She said 77 per cent of the complaints received were related to wellness services, such as gyms, beauty, skin and weight management, with digital services in telecommunication and streaming making up the remaining 23 per cent. She said gym memberships topped the list at 42 per cent of total complaints, mostly from those aged between 18 and 40. Weight management programmes, which often come with hefty price tags and lengthy contracts, made up a further nine per cent. "This was followed by spa and beauty services at 14 per cent and facial or cosmetic skin treatments at 12 per cent, mostly involving working professionals and urban women aged between 20 and 45. "In digital and media services, telecommunications contributed 13 per cent and streaming subscriptions 10 per cent. "These services span all age groups, but subscription traps disproportionately affect elderly users and digitally vulnerable groups, including those unfamiliar with opt-out processes or digital billing," Saral told the New Sunday Times. Saral said more elderly consumers were also reporting complaints involving telecommunication services, especially over unsolicited charges and unclear auto-renewal plans. She said penalties imposed on consumers seeking to terminate contracts typically range from RM1,500 to RM5,000 for gym memberships, RM1,300 to RM10,000 for spa and beauty services and RM6,400 to RM40,000 for skin treatments. Other complaints included termination charges for telecommunication packages (RM300 to RM3,800), broadcast TV subscriptions (RM170 to RM10,000) and weight management programmes (RM1,500 to RM58,000). "Signing up for a plan is simple, but cancellation is difficult. "In many cases, consumers unknowingly commit to long-term contracts through free trials that automatically convert into paid plans. "These practices, whether designed intentionally or by inertia, unfairly skew the marketplace in favour of businesses, often at the expense of consumer rights and financial wellbeing." Saral said while the Consumer Protection Act 1999 offers safeguards, particularly for prepaid "future services", such as gym or tuition packages, it does not cover digital or auto-renewing subscriptions. Telecommunications contracts, she said, remain a regulatory grey area. Under current practices, service providers are allowed to impose early termination penalties at their own discretion, with little to no consumer recourse. "This puts consumers in a difficult position, either to tolerate poor service or pay a hefty sum to escape." Saral added that there was no standardised requirement for companies to waive penalties in cases of unresolved service failure. CONSUMER ADVICE She advised consumers to review contracts and cancellation terms before signing up, and to use credit cards instead of debit cards for recurring charges, which offer more protection for dispute resolution. "Do not scan QR codes or provide card information without verifying the merchant. "In one case, a consumer was charged RM99 after scanning a QR code on a water meter from a third-party service provider," She urged affected consumers to lodge complaints through my or take matters to the Tribunal for Consumer Claims. CALL FOR STRONGER PROTECTION Saral said Malaysia should adopt global best practices to close loopholes and strengthen consumer protections. She said the government should establish a centralised redress platform — a one-stop portal involving the Domestic Trade and Cost of Living Ministry, Malaysian Communications and Multimedia Commission, Health Ministry and local councils — to streamline licensing, regulation and consumer complaints. "Each of these agencies and ministries is responsible for licensing, regulation and consumer redress in their domains," she said. Saral urged regulators to mandate clear disclosures on contract duration, auto-renewal terms, cancellation procedures and total upfront and recurring costs, practices already in place in countries, like Australia and the United Kingdom. "In Australia, the Competition and Consumer Commission enforces mandatory pre-contract disclosures. "In the United Kingdom, companies must comply with the Consumer Contracts Regulations 2013, ensuring full disclosure." Saral proposed a cooling-off period for high-value contracts, especially for gyms, slimming centres and beauty packages.
The Star
27-07-2025
- Business
- The Star
Easy to subscribe, hard to cancel
In today's digital economy, subscribing to a service takes only seconds. But cancelling it can take hours, repeated calls, or, in some cases, a change of credit card to stop the charges. The National Consumer Complaints Centre (NCCC) has received a growing number of complaints from Malaysian consumers who feel trapped in unwanted subscriptions, as they are unable to cancel services without facing unnecessary delays, penalties or complicated processes. From streaming platforms and online apps to gym memberships, telecom plans, and prepaid service packages, consumers are reporting a pattern: signing up is simple, but unsubscribing is frustratingly difficult. These practices – whether designed intentionally or by inertia – unfairly tilt the marketplace in favour of businesses, often at the expense of consumer rights and financial well-being. In many cases, consumers unknowingly commit to long-term contracts through 'free trials' that automatically convert into paid plans. Others face high exit penalties for trying to leave gym or telco contracts, even when the service no longer meets their needs. Worse, some digital platforms bury the cancellation button deep within account settings, or force users to call a hotline to quit a service they joined online. These tactics, commonly referred to as 'dark patterns', are designed to delay or discourage cancellation. A Southeast Asian survey found that 69% of Malaysian consumers are frustrated because they can't pause or stop subscriptions when needed, while 41% admitted to still paying for services they had forgotten about. In short, many Malaysians are losing money on services they do not want, do not use, or cannot easily cancel. While Malaysia's Consumer Protection Act 1999 (CPA) provides some safeguards, particularly for prepaid 'future services' such as gym or tuition packages, these do not extend to digital, auto-renewing, or monthly subscriptions. Telecommunications contracts are another grey area. Under current practice, companies are permitted to set their penalties for early termination, with little room for negotiation. This puts consumers in a difficult position: either tolerate poor service or pay a hefty sum to escape. Currently, there is no standard policy requiring service providers to release customers without penalty in cases of unresolved service failures. NCCC believes it is time for Malaysia to strengthen consumer protections in this space. We urge the relevant ministries and agencies to consider: 1. A 'Click-to-Cancel' Requirement: Any service that allows online sign-up should also allow simple online cancellation, with no hidden steps, excessive confirmations, or required phone calls. 2. A Cooling-Off Period: Introduce a standard 14-day cooling-off period for all subscription contracts, especially those entered into online or by phone. This allows consumers to cancel without penalty if they change their mind or realise they were misled. 3. Regulation of Auto-Renewals: Require explicit, informed consent before any automatic renewal of a subscription. Reminders should be sent at least 7 days before renewal, allowing consumers to opt out easily. 4. Limits on Early Termination Penalties: For longer-term contracts (e.g. gym, broadband), establish reasonable limits on early exit fees, especially when consumers cancel due to poor service. 5. Guidelines Against Dark Patterns: Ban manipulative cancellation designs and require businesses to be transparent and fair in their subscription models. 6. Public Awareness Campaigns: Many consumers are unaware of their existing rights under the CPA, especially regarding refunds for unused prepaid services. Greater outreach and education are needed. These steps are not radical. They reflect a growing global consensus that subscription-based services must be fair, transparent, and respectful of consumer choice. Let's make it easier for Malaysians to manage their commitments, avoid financial loss, and participate in a digital economy that respects their rights. Starting a subscription should take seconds, ending it should, too. Saral James Maniam Senior Manager of National Consumer Complaints Centre (NCCC)
The Star
19-07-2025
- Health
- The Star
Legal review advised for drug pricing order to ensure compliance, says doctor
JOHOR BARU: The newly gazetted Price Control and Anti-Profiteering (Price Marking for Drugs) Order 2025 should be referred to the Attorney-General's Chambers for a comprehensive legal review before its enforcement, according to local medical practitioner Dr Boo Cheng Hau. Dr Boo emphasised that while the initiative aims to protect patients' rights by ensuring fair pricing of medicines and medical consultation fees, its legal foundation under current laws is questionable. "It is just to uphold the rights of patients, but the Price Control and Anti-Profiteering Act 2011 must be interpreted together with other existing laws such as the Consumer Protection Act 1999, the Medical Act 1971 and the Poisons Act 1952," he stated. This statement comes in response to Domestic Trade and Cost of Living Minister Datuk Amirzan Mohd Ali's announcement in May about the formulation and gazetting of the new price control order under Section 10 of the 2011 Act, which mandates private hospitals, clinics, and pharmacies to display prices of medicines. Amirzan contended that the Act empowers the ministry to regulate prices of "goods and services" provided to consumers. However, Dr Boo, a former Skudai assemblyman and current DAP Taman Ungku Tun Aminah branch publicity secretary, argued that this interpretation might exceed the ministry's jurisdiction. He cited Section 2(2)(f) of the Consumer Protection Act 1999, noting that healthcare and other professional services are explicitly exempted from consumer law, as they are regulated under separate professional legislation. "Although Section 4 and Section 5 of the Price Control and Anti-Profiteering Act do give the ministry powers to set maximum and minimum prices, medical charges fall under the jurisdiction of the Health Ministry via the Medical Act 1971 and the Private Healthcare Facilities and Services Act 1998," Dr Boo explained. He further noted that the sale, licensing, and regulation of medicines are governed by the Poisons Act 1952, the Sale of Drugs Act 1952, and the Control of Drugs and Cosmetics Regulations 1984, all under the Health Ministry's purview. "The Domestic Trade and Cost of Living Ministry does not have the technical expertise, authority or jurisdiction to regulate pharmaceutical licensing or pricing. These responsibilities lie solely with the Health Ministry," he asserted. Dr Boo urged that the Cabinet should ensure laws are not interpreted unilaterally by ministers and should seek clarification from the Attorney-General's Chambers to ensure lawful enforcement and coordination between ministries. He warned that poor legal coordination could lead to enforcement issues, confusion, and exploitation in the healthcare sector, despite the government's commendable intention to protect patients' rights. Dr Boo highlighted inconsistencies in pharmaceutical pricing, with complaints about private hospitals charging significantly more than chain pharmacies, which sometimes sell drugs at up to 75% below typical market rates. He also raised concerns about pharmacies offering consultations outside their licensed scope and tampering with prescriptions, causing complications for patients. Dr Boo concluded that a clear legal framework is essential for regulating the health sector, stressing the need for better coordination among doctors, pharmacists, and paramedics to prevent profiteering, protect patients' rights, and uphold the ethical standards of the medical profession.
Daily Express
16-07-2025
- Business
- Daily Express
Fails to heed six Consumer Tribunal awards. Umrah packages: Firm hauled up
Published on: Wednesday, July 16, 2025 Published on: Wed, Jul 16, 2025 By: Jo Ann Mool Text Size: Zulkarnain outside the courtroom after the proceedings. Kota Kinabalu: A company offering Umrah packages and its director were charged in the Magistrates' Court here on Tuesday with failing to comply with six Consumer Claims Tribunal awards ordering them to pay RM232,536.80 to six individuals. Emraz Travel & Tours Sdn Bhd, represented by its Director Datuk Zulkarnain Endut, 44, and Zulkarnain, in his capacity as a director, pleaded not guilty before Magistrate Dzul Elmy Yunus after the charges were read out. Advertisement The company and Zulkarnain, were each slapped with six counts under Section 117(1) of the Consumer Protection Act 1999, which carries a fine of up to RM10,000, a jail term of up to two years, or both, on conviction. The charges stated that the company and Zulkarnain were alleged to have failed to comply with the award of the Consumer Claims Tribunal, which required them to pay claims to six claimants, ranging from RM24,666.80 to RM50,000, totalling RM232,536.80. The offences were allegedly committed at the Sabah Domestic Trade and Cost of Living Ministry, Federal Government Administrative Complex, Jalan UMS, here, between July 24, 2023 and Jan 25, 2024. They were accused of failing to pay RM24,666.80 to Mahmuddin Purag (order dated July 17, 2024); RM27,870 to Mariani Tarin (June 26, 2023); RM30,000 to Muhidin Ismail (Sept 9, 2023); and RM50,000 each to Jamilah Othman, Nur Aimi Naziha Norjain and Norjain Nudin, all three awards dated Nov 21, 2023. The Magistrate set Sept 23 for pre-trial case management (PTCM) and granted bail of RM1,000 with one local surety for each charge, with the additional condition that Zulkarnain report to the Domestic Trade and Cost of Living Department office in Putrajaya on the 17th of every month. Deputy Public Prosecutors (DPP) of Domestic Trade and Cost of Living Ministry, Shafiq Mahadi and Md Syafique Md Hilmie prosecuted while the company and Zulkarnain were represented by counsel Farah Nazriah Chun Lee @ Mohd Fadzlee Lee. DPP Shafiq submitted that the case involved public interest, as it concerned numerous Umrah pilgrims who were unable to perform their pilgrimage and had suffered losses amounting to hundreds of thousands of ringgit. On that basis, the prosecution offered bail to Zulkarnain at RM2,000 with one local surety for each charge against him. DPP Shafiq also applied for PTCM date to be fixed two months from Tuesday, as well as for mention to update the court on the status of Zulkarnain's wife, who is the third accused in the present case. The update concerns when she would be fit to travel to Sabah to face the charges against her, as she is currently in the 11th week of a high-risk pregnancy. Earlier, Farah applied for the warrant of arrest issued against the third accused, Datin Mazuin Mustafa, who is also a director of the company and Zulkarnain's wife, to be revoked. She informed the court that Mazuin was unable to travel due to her high-risk pregnancy, which is her first, as confirmed in a medical report from Hospital Putrajaya dated June 20 this year. Farah also requested a lower bail amount for Zulkarnain, citing that he is a Malaysian from Terengganu, is married, and currently has no fixed source of income. She further informed the court that his company, Emraz Travel & Tours Sdn Bhd, had been wound up since July 17, 2024, and that its bank account had also been frozen under the Anti-Money Laundering Act (AMLA). She also said that Zulkarnain is facing multiple similar charges across Malaysia, including in Sarawak, Sabah and Peninsular Malaysia. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
15-07-2025
- Business
- New Straits Times
Umrah package firm, director charged for ignoring tribunal's RM232,000 award to consumers
KOTA KINABALU: A company offering umrah packages and its director were charged in the magistrates' court here today for failing to comply with a decision by the Tribunal for Consumer Claims Malaysia to award claims amounting to RM232,526.80 to six people. The company, Emraz Travel & Tours Sdn Bhd, and its director, Datuk Zulkarnain Endut, 44, each face six charges under Section 117(1) of the Consumer Protection Act 1999, which carries a penalty of up to RM10,000, two years' imprisonment, or both, upon conviction. Zulkarnain, in his capacity as a director and on behalf of the company, pleaded not guilty before Magistrate Dzul Elmy Yunus after the charges were read out. According to the charge sheet, the company and Zulkarnain had allegedly committed the offences between July 2023 and January 2024 at the Sabah Domestic Trade and Cost of Living Ministry in Jalan UMS, here, by failing to pay the awards ranging from RM24,666.80 to RM50,000 to six individuals, totalling RM232,526.80. The court fixed Sept 23 for pre-trial case management and allowed bail at RM1,000 for each charge, with a local surety. An additional condition was imposed requiring the accused to report to the Domestic Trade and Cost of Living Ministry's office in Putrajaya on the 17th of every month. Deputy public prosecutors from the Domestic Trade and Cost of Living Ministry, Shafiq Mahadi and Md Syafique Md Helmie, prosecuted while the accused was represented by counsel Farah Nazriah Chun Lee @ Mohd Fadzlee Lee. Earlier, Farah informed the court that another director of the company, Datin Mazuin Mustafa, who is also Zulkarnain's wife, was supposed to be charged today but was unable to attend due to a high-risk pregnancy that prevented her from travelling to Sabah. Farah said her condition had been confirmed by Putrajaya Hospital on June 20, and she applied for the warrant of arrest against Mazuin to be revoked, which was not opposed by the prosecution. Meanwhile, Shafiq informed the court that according to a letter from the hospital, the accused's wife is currently 11 weeks pregnant. The prosecution requested that the next case management to be fixed within two months, with the same date also intended to ascertain the status of the accused's wife regarding when she would be fit to travel to Sabah. The court was also informed that Zulkarnain is facing similar charges in various states across Malaysia, including Sabah, Sarawak, and Peninsular Malaysia. On July 8 2023, Bernama quoted Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing as saying that the ministry had suspended the licence of Emraz Travel & Tours Sdn Bhd for six months, effective July 10, 2023 until Jan 9, 2024. Lembaga Tabung Haji Lembaga Tabung Haji had also suspended the licence of the same company on April 2 in the same year in a move to protect the welfare of prospective haj pilgrims following public complaints about their umrah services.
