KPDN PROPOSES INTEGRATED ODR PLATFORM FOR E-COMMERCE REFORM

KUALA LUMPUR, Feb 5 (Bernama) -- The Ministry of Domestic Trade and Cost of Living (KPDN) has announced a proposal to establish a more robust dispute resolution framework via an integrated Online Dispute Resolution (ODR) platform.

Minister Datuk Armizan Mohd Ali explained that the proposal is an outcome of a KPDN study aimed at reforming the existing e-commerce legal structure, driven by the 33,400 complaints over e-commerce transactions received by the ministry between 2023 and 2025.

"This ODR platform would be an enhanced successor to the current Alternative Dispute Resolution (ADR) mechanism.

“It will provide a fully digital, end-to-end process, from claim submission through to adjudication and final ruling, unlike the present system, which still involves physical or manual procedures," he explained. 

"We aim to table this proposal in the upcoming Dewan Rakyat sitting to secure the support of all Honourable Members to enact these legislative amendments and reforms.

“These reforms are designed to cultivate a healthier, more sustainable, and progressive e-commerce ecosystem and, in turn, reduce the high number of consumer complaints," he said. 

Armizan was responding to a supplementary question from Datuk Rosol Wahid (PN-Hulu Terengganu), who had asked about the progress of KPDN's proposal to introduce a special online business licence to tackle various e-commerce-related challenges.

Elaborating further, he said the KPDN study also proposes evaluating two regulatory models: either implementing a dedicated licensing framework for e-commerce businesses or adopting a risk-based model centred on operator self-compliance.

"These are the two policy options under consideration. A submission will be made to the Cabinet to secure a directive before advancing the relevant e-commerce legislation, to determine which model," he said.

On consumer complaints for the 2023–2025 period, Armizan reported that KPDN received a total of 83,239 complaints within its jurisdiction, with the largest category being online fraud allegations, which accounted for 33,400 of those cases.

"Other common complaints involved misleading pricing; failure to deliver goods or services; delivered items not matching their advertised description; online piracy; the sale of counterfeit goods; and the promotion of online pyramid schemes," he added.

Armizan noted that 1,136 cases were resolved during this period, resulting in the issuance of compounds totalling RM880,625.

The offences fell under several statutes: the Consumer Protection Act 1999; Trade Descriptions Act 2011; Price Control and Anti-Profiteering Act 2011; and Bank Simpanan Nasional Berhad Act 1997.

"Under the Consumer Protection Act specifically, two cases were prosecuted in court for offences under Section 12 on misleading prices, resulting in total fines of RM16,500," he concluded.

-- BERNAMA