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: NameMatric No Mohd Hesham Bin HarisD20191087188 Nur Athyrah Binti Abd RahimD20191087190
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.
Introduction Technologyandglobalizationmakegeographylessrelevanttoconsumptionactivities Joyce(2002)andLevitt(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 mentionedabout 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.
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 21.5million 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). ThetotalmarkettransactionisapproximatelyMR1.9billion(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 companiesoperating 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).
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