Moving Your Business Online – Laws You Should Know

online marketplace
By Joseph Cheah


We have seen a surge in online businesses in 2020 – due to physical stores and offices being forced to close. People that had been impacted financially by Covid-19 had to also step out of their comfort zone to sell goods or services online. Brick and mortar owners had also redesigned their websites to allow for online shopping. This write up sets out the requirements business owners must follow when conducting their business online.

Disclose your Information:

If you are selling goods or services through your website or in an online marketplace, the following information must be disclosed:

  1. Name of person, business, or company (and registration number) operating the business.
  2. Email address, telephone number, or address of the business.
  3. A description of the main characteristics of the goods or services.
  4. The full price, including transportation costs, taxes, and any other costs.
  5. The method of payment.
  6. The terms and conditions.
  7. The estimated time of delivery of the goods or services to the buyer.
Rectify Any Error and Acknowledging Order:

2 more things that online businesses require to do:

  1. You must provide an appropriate means to enable the buyer to rectify any error prior to the confirmation of the purchase
  2. You must issue an acknowledge receipt of the order to the buyer without undue delay.
Maintaining a Record as an Online Marketplace Operator:

If you run an e-commerce platform where product and service information is provided by third parties, you have a duty to take reasonable steps to keep and maintain a record of the names, telephone numbers, and address of the persons who supplies those goods or services, for a period of 2 years.

Penalty for Non-Compliance

A person who fails to fulfill the information above is punishable, if convicted, with a fine not exceeding RM50,000 and/or to imprisonment not exceeding 3 years. If there is a 2nd or subsequent offence, the court can impose a fine not exceeding RM100,000 and/or to imprisonment not exceeding 5 years.

A company who fails to do the same is punishable with a fine not exceeding RM100,000. If there is a 2nd or subsequent offence, then a fine not exceeding RM200,000.

An additional fine not exceeding RM1,000 will be imposed on any person or company for each day for which the offence continues after the conviction.


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