Latest news with #ElectronicCommerceAct
The Sun
18-07-2025
- Business
- The Sun
Malaysia to table e-commerce bill early 2026 for stronger regulations
PUTRAJAYA: A comprehensive e-commerce bill is expected to be tabled in Parliament early next year to strengthen Malaysia's legal framework for digital transactions. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the ongoing review of e-commerce laws, which began in April 2024, will conclude by August after extensive stakeholder consultations. 'The current legal framework lacks clear regulatory powers over electronic transactions. The existing Electronic Commerce Act mainly serves as an enabling act, while enforcement relies on temporary measures under the Consumer Protection Act,' Armizan told reporters after an engagement session. He noted that Malaysia's e-commerce sector continues to grow, with revenue rising from RM1.13 trillion in 2022 to RM1.22 trillion in 2023. The new bill aims to create a fair and comprehensive framework that supports industry growth without stifling innovation. One key concern is the regulation of foreign e-commerce platforms. 'At present, the ministry has no authority to regulate or monitor foreign platforms without a physical presence in Malaysia,' Armizan said, highlighting issues like tax inequality and an influx of foreign products. Discussions are underway with countries like China and Turkiye to establish government-to-government mechanisms for cross-border e-commerce oversight. Consumer protection remains a priority, particularly regarding automated decision-making (ADM) systems and algorithms that may contain manipulative elements. The ministry is also reviewing recent fee hikes by e-commerce platforms, which Armizan described as poorly timed. 'While blocking such decisions entirely may not be realistic, we are exploring a mechanism requiring platforms to consult with relevant agencies before implementing fee changes,' he said. The review process has involved 23 engagement sessions, six roundtable discussions, four international benchmarking visits, and feedback from over 300 respondents. Additional sessions will be held in Sabah and Sarawak. - Bernama
The Sun
17-07-2025
- Business
- The Sun
Malaysia to table e-commerce bill early 2025 for stronger regulations
PUTRAJAYA: A comprehensive e-commerce bill is expected to be tabled in Parliament early next year to strengthen Malaysia's legal framework for digital transactions. Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the ongoing review of e-commerce laws, which began in April 2024, will conclude by August after extensive stakeholder consultations. 'The current legal framework lacks clear regulatory powers over electronic transactions. The existing Electronic Commerce Act mainly serves as an enabling act, while enforcement relies on temporary measures under the Consumer Protection Act,' Armizan told reporters after an engagement session. He noted that Malaysia's e-commerce sector continues to grow, with revenue rising from RM1.13 trillion in 2022 to RM1.22 trillion in 2023. The new bill aims to create a fair and comprehensive framework that supports industry growth without stifling innovation. One key concern is the regulation of foreign e-commerce platforms. 'At present, the ministry has no authority to regulate or monitor foreign platforms without a physical presence in Malaysia,' Armizan said, highlighting issues like tax inequality and an influx of foreign products. Discussions are underway with countries like China and Turkiye to establish government-to-government mechanisms for cross-border e-commerce oversight. Consumer protection remains a priority, particularly regarding automated decision-making (ADM) systems and algorithms that may contain manipulative elements. The ministry is also reviewing recent fee hikes by e-commerce platforms, which Armizan described as poorly timed. 'While blocking such decisions entirely may not be realistic, we are exploring a mechanism requiring platforms to consult with relevant agencies before implementing fee changes,' he said. The review process has involved 23 engagement sessions, six roundtable discussions, four international benchmarking visits, and feedback from over 300 respondents. Additional sessions will be held in Sabah and Sarawak. - Bernama
Malaysian Reserve
17-07-2025
- Business
- Malaysian Reserve
Armizan: Comprehensive e-commerce bill expected to be tabled early next year
PUTRAJAYA — A bill to strengthen the legal framework for e-commerce is expected to be tabled in Parliament during its first session next year, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali. He said the ongoing review of e-commerce legislation commenced in April 2024 and is expected to conclude by August, involving engagement with stakeholders across the industry, among others. 'The review is necessary as the current legal framework lacks clear regulatory powers over electronic transactions, with the existing Electronic Commerce Act serving mainly as an enabling act. 'Enforcement currently depends on the Consumer Protection Act and related regulations, which were meant to be temporary. We need a comprehensive and fair framework accepted by all stakeholders to support e-commerce growth,' he told reporters after an engagement session today. Armizan said Malaysia's e-commerce sector recorded steady growth, with revenue rising from RM1.13 trillion in 2022 to RM1.22 trillion last year. He emphasised that new regulations must not hinder the sector's development, noting that once a mechanism is in place for local platforms, a similar approach will be considered for foreign-based operators. He added that, at present, the ministry has no authority to regulate or monitor foreign platforms without a physical presence in Malaysia, raising concerns over the influx of foreign products and tax inequality. Armizan also said that discussions are underway with countries such as China and Turkiye on a government-to-government (G2G) mechanism, particularly on regulating cross-border e-commerce and direct selling. Meanwhile, Armizan said consumer protection is a key focus in the ongoing review of the e-commerce legal framework, particularly on the use of automated decision-making (ADM) systems or algorithms that may contain manipulative elements. He said the ministry is also looking into growing concerns over recent increases in platform fees imposed by several e-commerce operators, noting that such fee hikes are business decisions made by the platforms themselves. 'In my view, the timing of their fee adjustments is not appropriate, especially since some had already revised their commission fees as recently as August last year,' he said. He added that while blocking such decisions entirely may not be realistic, the ministry is exploring a mechanism requiring platforms to consult with them or relevant agencies before making fee changes that affect users or sellers. To date, the review process has involved 23 engagement sessions, six roundtable discussions, four benchmarking visits abroad and over 300 respondents, with sessions in Sabah and Sarawak to follow. — BERNAMA
Korea Herald
11-02-2025
- Business
- Korea Herald
Can't cancel that subscription? Korea is cracking down on ‘dark patterns'
From frustratingly difficult-to-cancel subscriptions to hidden shipping fees, dark patterns -- manipulative online design tactics that trick consumers into spending more -- are widespread in South Korea's e-commerce market. Now, the government is taking action. Starting Feb. 14, the Korea Fair Trade Commission will enforce new regulations under the revised Electronic Commerce Act aimed at curbing misleading practices that obscure pricing, complicate cancellations and pressure users into unwanted purchases. Dark patterns pervade South Korea's digital landscape. A 2024 report by the Korea Consumer Agency found that 47 new types of dark patterns emerged last year, adding to the 429 cases identified in a 2023 investigation of major online shopping platforms. The most common complaints included: Hidden fees, such as shipping charges, that only appear at the final stage of checkout False urgency, where sales countdowns reset indefinitely to pressure shoppers into hurried purchases Preselected add-ons, such as travel insurance automatically included when booking flights Obstructed cancellations, making it unnecessarily difficult to unsubscribe from a service Repeated pop-ups, aggressively urging users to reconsider their decisions The rapid evolution of these deceptive tactics has made enforcement difficult. New variations of dark patterns are discovered almost weekly, according to the KCA. What the new regulations change The KFTC's new regulations introduce stricter consumer protection rules in four key areas: Subscription services: Businesses must notify users at least 30 days before converting free trials into paid subscriptions or raising prices. Without this, they face fines or up to a one-year business suspension. Transparent pricing: Retailers must clearly display the total cost upfront rather than revealing extra fees (such as shipping or service charges) in later steps of the transaction. If certain costs cannot be displayed immediately, the reason must be clearly explained. No more forced add-ons: Companies cannot pre-select optional services or products without user consent. For example, airline websites can no longer automatically add travel insurance to ticket purchases. Simpler cancellations: Deliberately hiding, complicating or obscuring the cancellation process is now prohibited. Companies that violate these rules face fines that increase with repeated offenses, up to 5 million won ($3,450) for the third violation and subsequent offenses. Repeat offenders may also face a one-year suspension of operations. Is the law strong enough? While the law is an important step toward fairer digital commerce, experts warn that enforcement challenges remain. The fines are relatively small, especially for major Korean tech firms and e-commerce giants. Unlike more direct legislation in the US and European Union, like the California Online Privacy Protection Act and the EU's Digital Services Act, South Korea's approach does not provide a clear mechanism for compensating consumers who have already been misled. 'Right now, the Korea Fair Trade Commission can only respond within the limits of its enforcement powers through continuous monitoring. If a more long-term solution is needed, it should be addressed through stricter legislation. Stronger penalties are necessary to deter businesses that repeatedly engage in these deceptive practices,' said Lee Jung-hee, a professor of economics at Chung-Ang University.
