The government is currently reviewing the special license procedures for online businesses in an effort to protect consumers from becoming victims of fraud. Therefore, a special team has been created to find a new licensing mechanism with existing regulations to be amended. Through it, the cooperation of several related parties is also involved to ensure effective implementation in the future.
As of today, the existing law is still in full force pending the implementation of this new mechanism. Where the procedure is subject under Section 2 of the Business Registration Act 1956 which mandates several things. Among them, traders are required to display their individual/business name, registration number, email, telephone number/address, and the main description of the goods/services offered. This includes including product details along with price, shipping cost, tax and estimated delivery time.
Failure to do so will result in the traders facing prosecution under the Consumer Protection (Electronic Commerce Transactions) Regulations 2012. Where, a maximum fine of up to RM50,000 or imprisonment for not more than three years or both. In addition, a second or more offense can be fined a maximum of RM100,000 or imprisonment of not more than five years for individuals, meanwhile RM200,000 for businesses.