Business law - ppb 3133 PDF

BUSINESS LAW - PPB 3133
Pair Assignment
Title:
E-COMMERCE CHALLENGES AND SOLUTION FROM A
MALAYSIAN LEGAL RIGHT
NAME: MATRICS NO.:
MUHAMMAD AKMAL BIN SAIFUL NIZAM D20191090068
MUHAMMAD RIEDZWAN BIN NASRULLAH D20191090074
SUBMIT TO : DR SASLINA BINTI KAMARUDDIN
SUBJECT : PPB 3133
GROUP : D
SEMESTER : 5

E-COMMERCE CHALLENGES AND SOLUTION FROM A MALAYSIAN LEGAL
RIGHT
Muhammad Akmal bin Saiful Nizam & Muhammad Riedzwan bin Nasrullah
Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, Tanjong Malim,
Perak Darul Ridzuan, Malaysia.
ABSTRACT
E-commerce is the online buying and sale of goods and services using computers, tablets,
smartphones, and other devices. E-commerce is also a means of conducting virtual electronic
transactions that are not constrained by location or time. A firm or a business can put up a
virtual office in this virtual environment as well, which consumers can visit at any time.
Nowadays, almost anything can be purchased through e-commerce. However, the distance and
timing of internet buying have created some additional consumer protection issues and
obstacles. Many issues confront vendors and consumers in e-commerce, including fraudulent
transactions, misuse of personal data, and more. Consumers can use the Contracts Act 1950,
the Sale of Goods Act 1957, and the Electronic Commerce Act 2006 to protect themselves in
sales contracts. This study aims to examine and identify challenges and solutions related to
issues that occur in e-commerce from the point of view of Malaysian law and the challenges
that need to be addressed by the government. This study also uses research methodology which
is a secondary source by taking several articles and journals to be used as authentic reference
material to produce and complete this article. The scope of e-consumer protection regulations
is fairly extensive in the realm of e-commerce operations. Product authenticity, transaction and
delivery fraud, the price of goods sold is not affordable and privacy and security are some of
the issues or challenges that electronic consumers face. As a result, based on the Consumer
Protection Act of 1999 and other laws, there are numerous options to overcome these issues.
As a result, authorities must tighten existing e-consumer regulations so that consumers are
more trusting and confident while making online purchases.
Keyword: E-commerce, Consumer, Legal Protection, Sales of good

INTRODUCTION.
Malaysia's economic prosperity has been aided by the rapid development of
information technology. The rise of internet users in Malaysia is a phenomenon that has both
positive and negative implications for the business world. The Internet has also been shown to
have a large-scale impact and benefit on human existence, which should not be overlooked by
today's businesses. The extensive and comprehensive usage of electronics in numerous
industries such as e-commerce has been impacted by the rapid development of the internet in
the realm of information technology.
E-commerce is a type of business that makes use of information technology,
particularly advanced telecommunications and internet lines, to make dealing with clients
easier. Not only that, but e-commerce is a type of business that uses the internet as a medium
or one of the marketing sites to reach customers all over the world without regard for
geography. In general, e-commerce can be classified into two categories: business-to-business
e-commerce and business-to-consumer e-commerce. According to Zulfamy and Mohamad
Fazli (2016), e-commerce between business and business involves transactions between two or
more companies, one party is a supplier company to the other while for e-commerce between
business and consumer it involves transactions between product sellers. end with the user.
Furthermore, e-commerce makes use of the internet as a platform to build a network
that connects customers, vendors, and third parties such as banks, financing companies, and
other businesses in a secure electronic environment. With the introduction of e-commerce, a
business or individual can perform buying and selling transactions from any location and at
any time. The prerequisites for doing e-commerce operations, however, remain the same,
requiring the most up-to-date information in administrative and business procedures. E-
commerce can also be viewed as an alternative to some of the previous companies' challenges,
the most significant of which is the problem of advertising and selling their products and
services.
However, e-commerce is becoming increasingly vulnerable to security breaches, and
the prevalence of e-commerce fraud is on the rise. The Electronic Commerce Act of 2006
(ECA), which recognizes the legality of contracts and electronic signatures, protects
consumers. Identity theft alone cost $ 1.48 billion in losses in 2018, according to a Consumer
Affairs survey, and the number is steadily rising. While increased internet access has aided in
the revolutionization of the e-commerce business sector by changing the entire world into a

single global market. Fraud has been far more prevalent in recent years, resulting in
considerable losses for both traders and purchasers.
OVERVIEW OF INTERNATIONAL LITERATURE.
In a global context, e-commerce losses due to online payment fraud are estimated to
exceed $20 billion in 2021, according to estimates. This represents an increase of nearly 14%
above the previous year's figure of $17.5 billion. Because most organizations rely on electronic
data and computer networks to run their operations, a rising amount of personal and financial
data is being moved and kept online. Individuals are susceptible to privacy breaches, and
financial institutions and other organizations face potentially substantial liabilities as a result.
These users subsequently conduct online transactions, and sensitive personal information can
fall into the wrong hands, resulting in financial losses (A/P Sinnathamby & Zukarnain, 2021).
Literature review in Singapore.
Rising labour expenses and high rents are typical complaints among businesses, but
even as these prices continue to put pressure on firms, a tiny but increasing group of e-
commerce businesses is succeeding by avoiding these expenditures. Singapore is well-
connected in terms of the internet, with ecommerce sales accounting for 15% of total retail
volume in areas such as the United States and Europe (2013). More ecommerce companies are
expected to develop, according to analysts. Because there were inefficiencies in the system
surrounding sales commissions and real estate prices, internet retail was able to eliminate about
20% of the costs that shops faced by operating online. Aside from offering lower pricing, some
online merchants are using technology to distinguish their online shopping experience from
that of traditional brick-and-mortar stores. Despite the fact that 75 percent of the population in
Singapore uses the Internet, ecommerce firms claim that more consumers are coming online as
they get more familiar with Internet and mobile payment methods.
OVERVIEW OF LOCAL LITERATURE.
Within the local context, recent research has primarily focused on the adoption of e-
commerce, which necessitates adequate business models as well as other tactics to make this
technology more accessible to enterprises (Carla Ruiz Mafe and Silvia Sanz Blas, 2006). E-
commerce can create a significant amount of revenue. The loss of money as a result of fraud,
on the other hand, is extremely unpleasant. E-commerce fraud is one of the most significant