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BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT

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Faculty of Management and Economics BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT Group Members: Name Matric No Mohd Hesham Bin Haris D20191087188 Nur Athyrah Binti Abd Rahim D20191087190 E-Consumer Protection in Delivery of Goods and Services Nur Athyrah Binti Abd Rahim & Mohd Hesham Bin Haris Faculty of Management and Economics, University Pendidikan Sultan Idris Tanjong Malim, Perak, Malaysia. Even though there are few

BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT

   Added on 2022-01-18

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Faculty of Management and Economics
BUSINESS LAW (PPB3133)
GROUP F
PAIR ASSIGNMENT
Group Members:
Name Matric No
Mohd Hesham Bin Haris D20191087188
Nur Athyrah Binti Abd Rahim D20191087190
BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT_1
E-Consumer Protection in Delivery of Goods and Services
Nur Athyrah Binti Abd Rahim & Mohd Hesham Bin Haris
Faculty of Management and Economics, University Pendidikan Sultan Idris Tanjong Malim,
Perak, Malaysia.
Abstract
The fast rise of e-commerce has resulted in the formation of a new consumer segment known
as e-consumers. This new consumer group has grown in size over the years as internet buying
has become a trend and a symbol of modern living. However, the distance and complexity of
online buying have created some additional concerns and challenges in terms of consumer
protection. One of the persistent issues that requires significant attention is the inadequacy of
Malaysian legislation to fulfil the basic expectations of internet customers. Even though there
are few consumer protection act like Consumer Protection Act 1999 (CPA) was amended in
2007 in order to protect the interests of e-consumers, also with the other existing legislation,
so how far for all the legislation could protect E-consumers in sale of goods and services
contracts. Therefore, this paper is tasked to generally analyse whether it is true or not for all
the E-consumers are being protected by existing Malaysian law. This research methodology
was obtained from online database and by research literature. In the realm of e-commerce
operations, the scope of e-consumer protection law is rather broad. Several issues that e-
consumers are concerned about including payment security, data privacy, dispute resolution,
unfair terms and conditions, the validity and enforceability of e-contracts, content regulation,
conflict of jurisdiction, misleading information and false advertisement, late delivery, extra
charges, the quality of goods, and so on. Therefore, the authorities need to tighten the existing
laws related to e-consumers so that consumers have more trust and confidence in making
online purchases.
Keywords: E-commerce, internet buying, protected, internet customers, goods and services.
BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT_2
Introduction
Technology and globalization make geography less relevant to consumption activities
Joyce (2002) and Levitt (1983). Internet growth has led the world to create a new
transactional that known as E-Commerce. This creation got so much response from the sellers
and buyers. E-Marketplace is also known as a virtual market where the suppliers and buyers
meet to exchange information about product and service offerings, and execute the business
transactions. If this thing happen, there will be several kinds of interactions occur between the
seller and the buyer which include E-Market, Storefronts and Virtual Community (Rodriguez,
2014). Protection is an insurance contract that helps protect a business, sellers or even the
consumers from the financial or any other effects. At the same time, a good is known as a
tangible item that consumers desire or own. Goods are items that satisfy human wants and
provide utility, for instance, consumer making a purchase of a satisfying product. A service is
not a tangible or physical entity but is still sought after by consumers. Often, a service can
also be performed at a distance. Together the term goods and services refers to what
consumers are consuming and spending money on. As this online business got so much
response, there are many sellers eager to know how to get in touch with more online buyers
as much as possible (Sophia, Wong and Wong, 2006).
Recent studies in China shows that after several years of development, the e-commerce
market has basically formed a pattern of sharing the world by several well-known brand
websites. All the sellers and buyers are the two sides of e-commerce. From the consumer’s
perspective, in the process of e-commerce development, there are more online merchants and
the types of goods are more complete and outstanding (J.-W. Tang and T.-H. Hsu, 2018).
However, consumers’ choices are diverse in this type of sales, and it is seems impossible to
produce all of their favourite goods. On the other hand, the goods that consumers choose to
buy reflect the choice of the merchants but also to a certain extent reflect the goods suitable
for online sales (J. Apurv, 2017). In the studies also they had mentioned about the
government policy to control this e-commerce sales. Undeniable that e-commerce brings so
much profit to the sellers especially, however there are several effects that consumers are
concerned about. This is because, there are no corresponding laws and regulations in the
network marketing of enterprises in China, which makes the illegal elements gain (C. Guerini
and E. A. Minelli, 2018). In addition, they need to build a better network to reduce this kind of
thing to happen either to the sellers or the buyers.
BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT_3
As we all know, E-Commerce has been around in Malaysia since the mid-90s, but the
ecosystem is still far behind compared to those in developed countries such as Hong Kong
and Korea and China. The recent survey of (McKinsey 2016) was indicated that about 10%
of Malaysian Internet users have purchased products or services through the Internet during
the past 3 months. The most popular items were airline tickets, books and music. According
to one studies in 2019, there were approximately 20 million online consumers in Malaysia,
with this number expected to grow to 21.5 million by 2022.19 According to the Malaysian
Communications and Multimedia Commission (MCMC), the highest adoption rate for e-
commerce is among the monthly salary group of RM3, 000 (A$1,133) to RM5, 000
(A$1,889) and RM5, 000 (A$1,889) and above. (Source: MCMC, E-commerce Consumer
Survey 2018). As mentioned in the studies, Malaysians consumers are attracted to the price
advantages, product range, free shipping and availability of reviews. According to MCMC,
the most purchased are fashion and cosmetics e-commerce product (8.6 million consumers).
The total market transaction is approximately MR1.9 billion (MCMC, E-commerce
Consumer Survey 2018).
There are gap between Malaysia and other country’s e-commerce in terms of goods, law and
legislation. In Malaysia, we are currently serviced by several companies operating e-
commerce sites in multiple countries and this number is likely to grow. The two largest
examples are Lazada and Shopee, both have operations in several Southeast Asian countries
and have built sophisticated cross-border capabilities, allowing their foreign businesses to
access customers across the region (The Map of E-commerce in Malaysia, 2019). On the
other hand, there are several countries that have better record in the e-commerce sales. For
example, in a short period of 1 year, more than 1,000 e-commerce websites were added. But
the survival rate of many small start-ups is very low, and the number of e-commerce
enterprises registered to establish and withdraw from the market is comparable. On the other
hand, Malaysia have better legislation or solution to protect all the consumers (J.-W. Tang
and T.-H. Hsu, 2018).
BUSINESS LAW (PPB3133) GROUP F PAIR ASSIGNMENT_4

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