KPDN cracks down on online scams to protect shoppers and sellers

Malaysian News--KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry (KPDN) is intensifying efforts to safeguard both consumers and legitimate businesses from fraud and counterfeit products in the digital economy.

Deputy Minister Datuk Dr Fuziah Salleh said the ministry implemented a range of initiatives to support digital entrepreneurs, including the Business Digitalisation Programme 2025 (PPP25), which seeks to empower them through the use of digital technology.

She said that the ministry continuously monitored e-commerce platforms, social media, and websites to detect fake advertisements, suspicious offers, and counterfeit products.

"We are aware that digital entrepreneurs face numerous challenges, including products being openly counterfeited and sold online, leading to an influx of low-quality goods in the local market.

"Therefore, KPDN will continue to protect both consumers and legitimate entrepreneurs from unfair competition by taking action under several laws, including the Consumer Protection Act 1999 for fraud cases, the Companies Act 2016 for registered businesses used for fraudulent purposes, the Trade Descriptions Act 2011 for false claims about products, the Price Control and Anti-Profiteering Act 2011 for unfair price manipulation, and the Trademarks Act 2019 for misuse of registered trademarks," she said in a statement.

Fuziah added that KPDN also monitored product prices on e-commerce platforms to prevent manipulation and manages complaints from both consumers and traders through the ministry's eAduan system.

She said this during a meeting with a delegation from the Malaysian digital entrepreneurs' community, led by Syed Gaddafi Syed Saifuddin. The session aimed to strengthen collaboration and discuss the challenges and opportunities for digital entrepreneurs in supporting the nation's economic agenda.

Among the issues raised were the protection of entrepreneurs' rights and products, challenges in cross-border trade, and proposals to enhance the local digital ecosystem.

"The outcomes of this engagement will inform policy improvements and enforcement mechanisms to further strengthen the digital entrepreneurship ecosystem," she said.

Fuziah said that KPDN's main goal was to empower entrepreneurs, particularly those in online businesses, by providing advisory services, assisting with trademark registration, and protecting intellectual property rights.

"KPDN is committed to supporting complaints in cases where products are counterfeited, as enforcement officers can remove advertisements of counterfeit goods once the product owner lodges a complaint.

"At the same time, we are working to expedite trademark registration at MyIPO within four months, while continuously advocating for consumer awareness to prioritise locally made goods and avoid counterfeit products.

"Ultimately, we want to ensure healthy competition so that consumers receive high-quality, safe, and reasonably priced products and services," she added.

As of July 31, an estimated 4.65 million Malaysian entrepreneurs or sellers were conducting business through major e-commerce platforms such as Shopee, Lazada, and TikTok Shop, with 95 per cent being local digital entrepreneurs.