Latest news with #MalaysiaGoldAssociation
Malay Mail
8 hours ago
- Business
- Malay Mail
Sellers of fake gold face RM500,000 fine, jail as ministry warns TikTok traders over misleading jewellery labels
PUTRAJAYA, June 22 – Businesses selling gold-plated or imitation precious metal jewellery must clearly label such items with the term 'plated', the Domestic Trade and Cost of Living Ministry warned amid a rise of sales on TikTok. New Straits Times quoted ministry enforcement director Azman Adam saying companies and individuals who fail to do so face fines of up to RM25,000 and RM10,000 respectively, while individuals could also face up to a year in jail, or both. 'The aim [of the regulations] is to protect consumers from fraud and ensure transparency in the precious metals market,' he was quoted saying. He emphasised that online sellers are also bound by the Consumer Protection (Electronic Trade Transactions) Regulations, which require full disclosure of product details under Schedule 3. 'Any person who uses false trade descriptions regarding the purity of precious metals may also be prosecuted under Regulation 8 of the Trade Descriptions (Articles Made of Precious Metals) Regulations,' he added. This comes as Malaysia Gold Association president Datuk Louis Ng called for a ban on 'gold-wrapped' products, saying they could be mistaken as real gold. However, Azman reportedly said the ministry has not yet received any complaints over the matter. Azman said such offenders can also be charged under Section 5 read with Section 6(f) of the Trade Descriptions Act, under which corporate bodies can be fined up to RM250,000, and up to RM500,000 for repeat offences. Non-corporate offenders may be fined up to RM100,000 or jailed for up to three years, or both, upon conviction. He stressed that sellers must also issue receipts stating the item's specifications as required by Regulation 9 at the time of sale. Azman also cautioned traders against using uncertified gold scales or engaging in fraudulent weighing, offences punishable by fines up to RM40,000, three years' jail, or both under the Weights and Measures Act. He added that misleading sales practices may be investigated under the Consumer Protection Act, and affected consumers can file complaints with the Tribunal for Consumer Claims Malaysia.
New Straits Times
9 hours ago
- Business
- New Straits Times
It's regulated: Ministry dismisses call to ban gold-plated products amid TikTok boom
KUALA LUMPUR: There is no need to ban the sale of gold-plated products as the sale of such items is regulated to protect consumers. Domestic Trade and Cost of Living Ministry enforcement director-general Datuk Azman Adam said gold-plated products have been in the market for years, and their increasing popularity did not warrant a ban. Previously, the Malaysia Gold Association (MGA) called for the sale of "gold-wrapped" products to be banned amid their growing popularity on social media platforms like TikTok. Its president, Datuk Louis Ng, said that these items posed a risk to consumers, pawnbrokers, and the gold recycling industry as they could be mistaken for authentic gold. He said a thick layer of gold wrapping could make such items indistinguishable from genuine gold, especially to the untrained eye. Azman said the Trade Descriptions (Articles Made of Precious Metals) Regulations under the Trade Descriptions Act governed the sale of precious metals like gold, silver and platinum. "The aim (of the regulations) is to protect consumers from fraud and ensure transparency in the precious metals market," he told the New Straits Times. Azman said the regulations specified that jewellery coated with gold, silver or platinum must be described with the word "plated" when sold to customers. A company or individual in violation of the law faces a fine of up to RM25,000 or RM10,000, respectively. An individual can also be jailed for up to one year, or both, upon conviction. Action can be taken against traders who fail to comply with this requirement. However, to date, Azman said the ministry had not received any official complaints regarding the sale of gold-plated silver products or gold-like items. Precious metal sales highly regulated Azman said online traders were also subjected to the law, including the requirement to disclose product information under Schedule 3 of the Consumer Protection (Electronic Trade Transactions) Regulations. He added that the sale of precious metals was highly regulated against fraud. "Any person who uses false trade descriptions regarding the purity standards of precious metals may also be prosecuted under Regulation 8, Trade Descriptions (Articles Made of Precious Metals) Regulations. "They can also be charged under Section 5 read with Section 6(f) of the Trade Descriptions Act," he said. Under the Act, if the offender is a corporate body, it may be fined up to RM250,000 upon conviction. And for a second or subsequent offence, the fine may be increased to a maximum of RM500,000. If the offender is not a corporate body, he may be fined up to RM100,000 or face imprisonment for up to three years, or both. He added that businesses selling or supplying precious metals must provide a receipt detailing the item's specifications, as mandated under Regulation 9 at the time of supply. Azman also warned that traders using uncertified gold weighing scales or engaging in fraudulent weight measurements could be prosecuted under the Weights and Measures Act. Under Section 14(6) of the Act, any person who uses or possesses for trade purposes any weight, measure, or weighing or measuring instrument that has not been verified, stamped, certified or approved as required under this section commits an offence. Upon conviction, they may be fined up to RM40,000 or imprisoned for a term not exceeding three years, or both. The weight, measure or weighing or measuring instrument may be forfeited. The compoundable amount for this offence shall not exceed the maximum fine, which is RM40,000. "Among others, complaints related to misleading sales practices may also be investigated under Sections 9 and 10 of the Consumer Protection Act," he said. Under the Act, if the offender is a corporate body, it may be fined up to RM250,000, and for a second or subsequent offence, the fine may be increased to a maximum of RM500,000. If the offender is not a corporate body, he may be fined up to RM100,000 or face imprisonment for up to three years, or both. Meanwhile, Azman said consumers who felt cheated in a sales transaction could file a claim with the Tribunal for Consumer Claims Malaysia. He encouraged consumers to report any concerns by submitting complaints with full and accurate details through WhatsApp: 019-848 8000, 1-800-886-800 and Ez ADU KPDN Mobile App.
New Straits Times
10 hours ago
- Business
- New Straits Times
'Fake' gold finds favour with Malaysian consumers seeking budget options
Bracelets and necklaces that resemble gold but cost a fraction are flooding social media live streams, drawing in many buyers who think they have found a great deal. However, some who spoke to the New Straits Times say they were fully aware that the jewellery was never the real deal. A 53-year-old woman, who wanted to be known as Nazifah, said she purchased a gold-wrapped silver jewellery on TikTok Live for just RM28. She was fully aware that the product was not real gold. "I had a gold bracelet, but it broke, and replacing it with a new one is too costly due to the recent surge in gold prices," she said. Seeing the affordable alternative online, she decided to give it a try. To her surprise, the bracelet held up well despite daily wear. "I have been wearing it for over three months now, even while doing household chores and cooking, and the gold plating hasn't faded at all. It still looks as good as new. "Compared with famous brands, this one actually lasts longer, and it is much more affordable," she said. Previously, the Malaysia Gold Association (MGA) called for the sale of gold-wrapped products to be banned amid their growing popularity. The association said it was concerned that these items might be indistinguishable to the untrained eye of consumers and even some industry players. On TikTok Shop, sellers are offering gold-wrapped bracelets and necklaces weighing between three to five grammes for as low as RM200 to RM350. This is significantly below the market price of gold, which stood at RM450.12 per gramme at press time. During one live broadcast, a seller was honest enough to state that the jewellery he sold contained only two to three per cent gold. However, the same seller then advertised a bracelet with an alleged original price of RM430, which he would be offering to selected customers for just RM35. He also offered a one-year warranty and a buy-back option. Additionally, if customers purchased multiple items, they would receive an extra year of warranty. Qistina Damia, 22, a university student, said these budget-friendly jewellery options allowed her to keep up with fashion trends without breaking the bank. "As a student, I cannot afford 916 gold, but I still want to wear nice accessories. These plated bracelets look just like the real thing on camera," she said. Qistina said she was aware that the items were not real gold, but the sellers' transparency had made it a fair deal. "They are upfront about the product containing very little gold. I think that's fine, as long as you know what you're buying," she said.
