Malaysia tightens enforcement against hidden fees, with fines of up to RM100,000

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Malaysia tightens crackdown on hidden fees

Highlights

Malaysia will fine corporations up to RM100,000 and individuals up to RM50,000, or impose imprisonment, for failing to display the actual price, including all charges.
The All-Inclusive Price Policy is mandatory in the food, e-commerce and delivery sectors, requiring all price components to be disclosed to consumers before an order is confirmed.
The Ministry of Domestic Trade and Cost of Living is enforcing Act 599 and price control orders to combat hidden fees and price deception at physical premises and online.

This article was translated from the original. Read the original version by our correspondent here.

Legal provisions and pricing guidelines

As reported by The Edge Malaysia, Minister of Domestic Trade and Cost of Living Datuk Armizan Mohd Ali said businesses that fail to inform consumers of the total amount payable before a purchase could face legal action. He said the practice misleads consumers and undermines their right to know the actual price upfront.

In a written reply in the House of Representatives on Tuesday, Armizan explained that Section 10B(1) of the Price Control and Anti-Profiteering Act 2011 authorises action against businesses that fail to include all taxes, duties and other charges in the prices of goods or services displayed, advertised, published or quoted. Under Section 57 of the same Act, a body corporate that contravenes the provision may be fined up to RM100,000, while an individual faces a fine of up to RM50,000, imprisonment for up to two years, or both.

He also said the Ministry of Domestic Trade and Cost of Living has enforcement powers under the Consumer Protection Act 1999, particularly Section 12(1)(a), which makes misleading representations about the price of goods or services an offence. Section 12(3)(c) further provides that a price display is considered misleading if it gives the impression that the stated price covers all payments, when an additional charge is in fact imposed separately.

Armizan said Sections 9 and 10 of the Act also prohibit false or misleading claims about the nature and characteristics of goods or services, covering transactions at physical premises and online. Under Section 145 of Act 599, a body corporate may be fined up to RM100,000, while an individual may be fined up to RM50,000, imprisoned for up to three years, or both.

The Ministry has also introduced the All-Inclusive Price Policy guidelines to promote price transparency, particularly in the food and beverage, e-commerce and delivery sectors. The policy requires consumers to be informed of the total price, including the base price, service charges and delivery fees, before an order is confirmed.

At the same time, the Ministry is enforcing the Price Control and Anti-Profiteering (Price Marking for Goods and Charges for Services) Order 2020, which requires service providers and business premises to clearly display a list of the services offered and the charges imposed.

In our earlier coverage of the coordination of enforcement governing the entry of foreign products and businesses into the local market , we explained the government's review of the legal framework and enforcement mechanisms to ensure fair competition in the e-commerce landscape. The article also discussed efforts to strengthen the digital trade ecosystem through a proposed E-Commerce Bill, the “Jom Beli Produk Malaysia” campaign, and support to help SMEs and rural entrepreneurs make use of digital platforms and international markets.

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