Legal Protection for Online Shoppers Part2

Consumers need to be protected from unfair trade practices such as the sale of defective products, false advertisement, false description of goods, misleading price and etc. Those consumer protection laws should evolve with the innovation of ICT.

Consumer Protection Act 1999 was amended in 2007 to cover electronic commerce transactions. This act protects consumers from misleading and deceptive conduct, unfair trade practices and false representation.  

Section 187 to 204 of Communications and Multimedia Act 1998 contains provisions on consumer protection. The provisions make it obligatory for network facilities or service providers to deal reasonably with consumers and adequately address consumer complaints (Jayabalan, 2012). 

Electronic Commerce Act 2006 merely provides legal recognition of electronic messages in commercial transactions, the use of the electronic messages to fulfil legal requirements and to enable and facilitate commercial transactions through the use of electronic means (Amin & Nor, 2013). The enactment of this act is to follow suit in implementing the UNCITRAL model law. However, this act does not cover consumer protection.

“In my opinion, Electronic Commerce Act should contain the provision on the safety of electronic transactions to protect consumers. Although cyber laws and consumer protection law have been enacted in Malaysia in line with the development of the cyberspace but exploitation of consumer’s vulnerability to unfair trade practices continues. Other than laws that protect consumers, there should have more legislation to govern online sellers. Authorities need to ensure the credibility of the online sellers. All the online sellers must follow the Consumer protection (electronic trade transactions) regulations 2012. 

Sources: 
1. Amin, N. & Nor, R. (2013). Online shopping in Malaysia: Legal Protection for E-consumers. European Journal Of Business And Management, Vol.5(No.24).
2. Jayabalan, S. (2012). E-Commerce and Consumer Protection: The Importance of Legislative Measures. 16 JUUM 93 – 101.

Legal Protection for Online Shoppers Part1

Have you shopped online before? Are you feeling safe when shopping online? We would like to share some legal information for online shoppers. 

Computer Crimes Act 1997 (CCA) addressed offences relating to unauthorised access, unauthorised modifications and wrongful communication. To some extents, CCA protects online shoppers with regard to a security of online payment.

As consumers shop online, their personal information is easily misused by the third party. Personal Data Protection Act 2010 regulates the processing of personal data involved in commercial transactions. This act protects individual personal data from being processed or disclosed without the person’s consent. 

Digital Signature Act 1997 protects consumers by providing a means for secure online transactions by using digital signatures.

There are more laws and regulations that protect online consumers will update in next post. Please stay tuned. 

“Consumers unable examine the products when they buy online. They are more vulnerable compared to traditional buyers. Thus, laws and regulations that govern online market are very important to protect consumers. The borderless online business environment makes the implementation of laws become more difficult. The local law may not be sufficient to protect consumers from cross-border online transactions. Therefore, harmonisation of legal standards among countries is important to ensure adequate protection for 
the consumers and increase consumer confidence when shopping online.”

1st September 2016 - Malaysia's First Special Cyber Court Activated Today

According to The Star online news (2016, September 1), Malaysia's first special cyber court is in operation to handle the increasing number of cyber offences. This cyber court would handle cyber offences such as bank fraud, hacking, defamation, cyber spying, online gambling, document falsification and pornography. Minister in Prime Minister's Department Datuk Seri Azalina Othman said the court is equipped with facilities to function as an e-court complete with technology-savvy judges and prosecutors. 27 judges have sent for training to enhance their knowledge and understanding of the technological tools involved in the courts. According to her, cyber courts will be set up in other states later.

" In my opinion, authorities need have a very clear direction on what type of cases will handle by this special cyber court as some cases may involve both online and offline offences. Judges, prosecutors and legal practitioners involved in the case must keep improving their Information Technology knowledge and expertise in computer forensic. Last but not least, Malaysia should strengthen the current cyber law to protect all online users from cyber crimes. "

Source:
Sira, H. (2016, September 1). Special court to handle cyber crimes cases ready for use. The Star. Retrieved from http://www.thestar.com.my/news/nation/2016/09/01/first-cyber-court-in-jalan-duta-activated/

Types of Online Shopping Fraud - Scenario 2

The above scenario shows that a buyer purchases a box of large fairy house bricks block online for her nephews and niece. The buyer is happy that the product delivers on time and the box is same with the one that displayed online. However, when her nephews and niece did assemble the bricks block, they just realise it is totally different with the one that described online. 

The buyer seeks for an exchange of the product but she just realises that there is a term and condition stated “all goods sold are not returnable or exchangeable” under any circumstances. She feels being cheated by the seller.   

“It is an offence under Trade Description Act 2011 section 5(1)(a) any person who applies a false trade description to any goods; (b) supplies or offers to supply any goods to which a false trade description is applied shall be liable to a fine not exceeding one hundred thousand ringgit or to imprisonment for a term not exceeding three years or both if such person is not body corporate.

Those terms and conditions that imposed by online traders may not favourable to consumers. The statement that “all goods sold are not returnable or exchangeable” will blind consumers and they are unable to claim any rights in cases of defective goods and unsatisfactory goods. Consumers must aware all the terms and conditions stated on the website before they purchase."

Special credits to:
Online buyer (victim): Teo Geok Cheng (Sukie)
Nephew 1: Lim Yong Han
Nephew 2: Lim Yong Seng
Niece: Lim Shi Ya
Courier staff: Cheah Zi Yik
Photographer: Teo Geok Hong & Cheah Zi Yik
Cartoon effect editor: http://www.cartoonize.net/

Types of Online Shopping Fraud - Scenario 1

The above picture illustrates a buyer being scammed online. The seller, who is an online scammer, wished to earn quick money through selling products online. He posted a picture of an ipad, selling at a very cheap price. The girl above in the picture, happened to browse the Internet and her attention was drew at the ipad being sold. She was attracted as the selling price was so much more cheaper than it's being sold elsewhere. Without further consideration or hesitation, she decided to purchase the ipad and made the payment online to the seller. The item was expected to arrive in three days time as stated in the website.

One week has passed, the ipad still did not arrive at her doorstep. Hence, she decided to check the delivery status and wanted to contact the seller online. Unfortunately, when she log on to the website, it was displayed that the website is no longer available and does not exist. She then came to realize that she was actually being scammed, however it was too late!

Does the above situation seemed familiar to you? 

Were you one of the victim as above? 

It is common that as consumers, we often get attracted to attractive deals, or fall prey to several types of scams without realizing. We must learn to be a smart shopper online, do not make purchase from untrusted websites, especially those selling counterfeit products with super low prices, and check if the website is legally registered. DO NOT purchase if any of the information online seems fishy to you. It is advisable to select the option of "cash on delivery" payment mode if available, instead of paying it online directly before the arrival of goods. Preventive measures are vital to ensure that we do not fall prey to fabricated websites easily.

Do not be easily lured by discounts!
Let us all together, be a smart shopper online!

Special credits to:
Online seller (scammer): Cheong Zhen Fui (Nick)
Online buyer (victim): Michelle Anne Minjoot
Photographer: Teo Geok Cheng (Sukie)
Cartoon effect editor: http://www.cartoonize.net/

Warning Signs of Online Shopping Fraud

What are the common signs of fraud while shop online?

Top 1:

A product claimed to offer amazing features, benefits and most of all selling at a unbelievably low price. It sounds too good to be true isn’t it? Are you the type that gets attracted easily by cheap deals? Would you not doubt the quality of product?

Top 2:

Seller demands payment to be made immediately through wire or electronic funds transfer, or insist buyer to make initial payment to be entitled for vouchers which offer cheap deals or free give-away. Why the urgency of payment demanded? Have you ever wondered why?

Top 3: 

Seller do not accept or allow buyer to make payment through any secured payment service provider such as PayPal, as well as using credit card transaction. Normally buyer is told to transfer the money to a personal bank account number, claiming to speed up the transaction process, which then fasten the delivery time taken as well.

Is that really true? Is transferring to a personal bank account sounds reliable to you?

Top 4: 

No adequate information of the seller or company could be found in the online website. Lack of information on terms and conditions of use, refund policy, or contact details could be found displayed on website. Seller tries to avoid or hide information as such when being asked, or claim that they are based in overseas, hence the inconvenience in delivering the information needed. Is such retailer seems trustworthy to you? Aren’t all these information necessary for a buyer to know?

Top 5:

The online website has a very poor rating and reviews. No feedback section could be found on page, or the seller intends to carry out the business activity and transaction away from the original website, such as through a fabricated social media account and etc with the aim of not disclosing their identity or leave any source of evidence for tracking later. If a website really is so good to be true, won’t they receive good ratings in return? Wouldn’t they proud to disclose their identity for consumers to remember them?

Are the above signs seemed alarming and worrying to you? Don’t they sounded fishy?    

Be aware, guard yourself from now!

Source:

Online shopping scams. (2015). Australian Competition and Consumer Commission. Retrieved 20 August 2016, from 

https://www.scamwatch.gov.au/types-of-scams/buying-or-selling/online-shopping-scams         

What is Online Shopping Fraud?

Internet shopping has grown to be common across the globe. Scammers online took the advantage of anonymity to perform fraudulent acts. Online shopping fraud is therefore defined as an act of cheating online involving scammers pretending to be a legitimate seller, either with a fabricated website or posting fake ads on a genuine retailer site. Innocent and less cautious customers are the higher potential victim of such scams. Spend a few minutes of your time to read the following: 

• I bought goods online but received it late, or not at all.
• I received goods that didn't match with original description.
• I received no response and unable to reach the seller after purchase made.
• I gave personal details to online seller and being used in criminal ways.   
• I get excited and attracted easily to cheap deals.
• I trust sellers online are genuine and proceed with payment without checking their identity or legitimacy of business. 

Based on the statements above, if you agreed to most of them, you're on a high potential for being a victim of online scam. If you're lucky enough to disagree, be aware as well and ensure you won't be the next victim in future. Scammers would not only cheat your money online, they could also steal your personal details and access into your bank accounts.

Isn't it scary how dangerous and vulnerable are we in the online space? Are you aware of ways on how to prevent?

Stay tuned and find out more in our following posts! We will share with you what are the types of online shopping fraud scenarios, some of the legal protection acts that would be beneficial to us consumers, as well as some useful tips and guidance on how to prevent yourself from being a victim. 

Here's a short video to illustrate what is online shopping fraud. 

Source: Youtube - https://www.youtube.com/watch?v=qRWpvcjpQNw

Have a pleasant day ahead! =)