Consumer Protection in E-Commerce in Malaysia: An Overview

Abstract

Electronic Commerce or e-commerce has received much attention from governments, businesses and regional bodies. This importance has been attributed to several converging factors. According to Ding (1999), these factors include: first, the development of the use of the Internet as a means by which information is disseminated and through which communication and connectivity is enabled; and second, the affordability of personal computers, increase in their computing capability, and the wide use of open standards. In the business environment, traditionally there is a need for a tangible and permanent form of communication in a transaction between buyer and seller. However, in e-commerce there is the ability to communicate in an electronic form where a computer is able to recognize, reproduce and store means that business could now be conducted in a paperless environment. Electronic commerce is the process of trading across the Internet, that is, a buyer visits a seller's website and makes a transaction there. Less rigidly it includes deals where the Internet plays some role, for example, assisting the buyer in locating or comparing products and/or sellers. (http://www.apec.org/apec/apec_groups/committee_on_trade/electronic_commerce.html Accessed on 13/2/04) This new mode of transaction has raised several concerns for governments, businesses, and consumers. In addition, there is a need for international standards as the e-market transcends any national border. Governments are grappling with regulatory guidelines and frameworks in an environment of rapid technological changes in order to promote e-commerce as well as to ensure the occurrence of smooth commercial transactions. In all of this advancement, consumer protection cannot be overlooked. Without the confident e-consumer, there would be no e-commerce. Thus it is imperative to ensure that the online traders observe specific rules and guidelines to allay the fears of the consumer and promote ethical online transactions.