Malaysia

Govt strengthens e-commerce legal framework following over 4,800 complaints in 2025

KPDN continues its nationwide stakeholder engagement sessions to review and reform Malaysia’s e-commerce legislation, following thousands of consumer complaints over digital transactions

Updated 1 year ago · Published on 23 Aug 2025 6:51PM

Govt strengthens e-commerce legal framework following over 4,800 complaints in 2025
Ministry cites common complaints involve undelivered goods, products that differ from their advertised specifications, misleading advertisements, counterfeit items, impersonation by sellers (Photo from Astro Awani) - August 23, 2025

THE Ministry of Domestic Trade and Cost of Living (KPDN) has recorded a total of 4,809 complaints related to e-commerce transactions up to 31 July 2025, with online trading continuing to rank as the highest category of consumer grievances for both 2023 and 2024. In 2024 alone, 10,486 complaints were received.

In response, KPDN held its third Engagement Session on the Review of E-Commerce Legislation in Kuching, Sarawak, involving a wide spectrum of stakeholders. Participants included representatives from industry, digital platforms, traders' associations, consumer groups, government agencies, legal experts and academics.

This session follows two prior engagements in Putrajaya on 17 July 2025 and in Kota Kinabalu, Sabah on 9 August 2025. The initiative forms part of the Ministry’s broader public consultation effort aimed at finalising the legislative review process which began in April 2024.

The engagement session also contributes to the Regulatory Impact Assessment (RIA) process outlined by the Malaysia Productivity Corporation (MPC), assessing the effectiveness and impact of existing regulations.

KPDN emphasised that this evidence-based and inclusive approach to policymaking aligns with international best practices, allowing for comprehensive input from all stakeholders including service providers, industry players, regulators and consumers.

Among the key aims of the session were to gather feedback on existing laws, present findings from ongoing research and proposed legislative directions, assess the effectiveness of the Consumer Protection (Electronic Trade Transactions) Regulations 2024, and raise awareness of regulatory gaps within the current e-commerce ecosystem.

According to KPDN, the most common consumer complaints involve undelivered goods, products that differ from their advertised specifications, misleading advertisements, counterfeit items, impersonation by sellers, and challenges dealing with overseas suppliers—particularly concerning returns and refund claims.

Through this engagement in Sarawak, KPDN reiterated the need for strong collaboration across all stakeholder groups—government agencies, service providers, online merchants and consumers—in order to enhance the sustainability and resilience of the national e-commerce landscape.

"The approach taken reflects a commitment to inclusive, transparent and evidence-based policymaking. It ensures that the evolving needs of our digital economy are addressed through a balanced and responsive legal framework," said YB Senator Datuk Dr Fuziah binti Salleh, Deputy Minister of Domestic Trade and Cost of Living. - August 23, 2025

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