Online Business – KPDNKK (Ministry of Domestic Trade and Consumer Affairs)

  • All online business must be registered with the Companies Commission of Malaysia (SSM);
  • Online Business Companies having foreign participation (i.e. foreign ownership above 51%) and operating in Malaysia must comply with the following regulations:
    • Company must make an application for non-regulated business with the Industry and Service Division by referring to the Guidelines on Foreign Participation in the Distributive Trade Sector in Malaysia;
    • Company must comply with the Consumer Protection Regulations (Electronic Trade Transactions) 2012; and
    • Company must comply with all existing laws and regulations in Malaysia as applicable to a physical business

INTRODUCTION

The Service Industry Division was created on 16 January 2010 for the purpose of regulating the development of the following industries

  1. Non-regulated Services
  2. E-Commerce.

OBJECTIVE

Promote balanced and competitive growth of non-regulated service industry and electronic commerce (e-commerce).

VISION

Domestic Trade is the foundation of High Income Economy.

MISSION

  1. Develop the key domestic sector to be competitive, progressive and sustainable;
  2. The domestic economy is based on fair and innovative competition; and
  3. Develop trade ecosystems based on ethic and importance of consumer.

FUNCTION

  1. Ensure the non-unregulated service sector is included as a focal point for the determination of the liberalization policy of the Ministry for the services sector in international negotiations;
  2. Control the development of convenience stores with foreign interests
  3. Develop and regulate e-commerce including making it focal point for cross border complaints for e-commerce; and
  4. Review and revise Malaysian Trustmark’s policies and mechanisms where KPDNKK acts as the lead agency.

SERVICE INDUSTRY DIVISION
Aras 9 (Menara), No. 13,
Persiaran Perdana, Presint 2,
Pusat Pentadbiran Kerajaan Persekutuan,
62623 Putrajaya, Malaysia.

Tel :03-8882 6205
Fax :03-8882 6490

Notice of Sale

1. What are the expressions used in referring to notice of sale?

The expressions which indicate cheaper price of goods as to be compared to its previous price include the usage of wording such as:

  • Sale
  • Discount
  • Reduction
  • Best Buy
  • Best Price
  • Special Price
  • Price Crush
  • Every Day Cheaper Price
  • Half Price Offer

2. How many time in a year that notice of sale could be organised?

  • 3 times – the dates chosen by Controller of Trade
  • 2 times – the date chosen by the trader

3. When is the dates gazetted by the Controller of Trade for the year of 2017?

Notice of Sale dates for 2017 gazetted by the Controller of Trade are:

  • Early Year Sale – 1st March 2017 until 2nd April 2017
  • 1 Malaysia Mega Sale Carnival – 1st May 2017 until 31st August 2017
  • 1 Malaysia Year End Sale – 1st October 2017 until 1st January 2018

4. What are the requirements that need to be fulfilled in order to organise sales?

  • The goods which are sold with “low price” tag must be at least 50% from the total of all goods displayed in the same premises.
  • The minimum reduction percentage of the price of good supplied must not be less than 10% from the price of good supplied.
  • Notice of sale must be displayed at places that are noticeable. Whereas the goods particulars and prices can be displayed on any electronic display screen or to be kept in folder or file or to be placed at eye- catching spot and within customers’ reach.
  • If trader is holding sale in more than one business premises, a copy of notice of sale must be displayed in every premises. The particulars of goods and prices shall be displayed like how it should be in paragraph 3.
  • Traders must maintain a complete record of the goods prices for the previous 6 months which are offered in the same premises.
  • Traders must display on every goods “previous offered prices” and “sale”. The price offered previously” is the lowest price (fix price) sold for 28 days continuously in the same premises for the period of 3 months before the starting date for sale (excluding low prices during sales)
  • The registration number and the date of sale as well as the KPDNHEP’s logo must be stated in any form of advertisement.
  • KPDNHEP’s logo must be in National Language and could be translated to any other languages. It should be handwritten or printed with a height of not less than 5mm.
  • Traders must maintain one reasonable stock of goods for sale.
  • Every sale held must not be more than 30 days except for the date of the Controller.

5. What is the procedure to apply for a sale notice?

  • Application of sale notice must be done online through the Sale Notice application system provided at kpdnkk.gov.my website.
  • Trader must get a password in order to use the application system of sale notice.
  • Application of sale notice can be sent online to any KPDNHEP state or district branches.
  • Authorised sale notice must be printed by the trader and need to be displayed at every premises which is used to hold the sale.

6. Can I reduce the prices without producing the sale notice?

Yes you may do so, only when a reduction or the decrease in price is made in one of the following conditions:

  • Does not indicate any comparison with any other prices
  • Compliant with any other particular requirements related to the purchasing of the goods:
  1. Purchase with purchase discount (PWP)
  2. Coupons, Discount Vouchers
  3. Member’s card
  • Is made verbally inside the premises where the sale is held
  • Involves perishable goods

Enforcement Of Price Tag

Price Tagging is a law that has been enforced since 1977 with 111 selected items. This legislation, formerly known as the Price Control Order (Indication of Price by Retailer) 1977, was replaced by the Price Control Order (Indication of Price by Retailer) 1993 and covers all types of goods sold in retail.

All vendors selling goods in retail are considered retailers. Retailers comprise traders of sundry shops, wet markets, farmers’ markets, night markets, hypermarkets, mini markets, kiosks, sports shops, goldsmith stores, and clothing and accessories boutiques including all forms of retailing business to end-users.

Responsibility of displaying price tags by retailers is as follows:

  1. Must place a price tag on each item or sample of the items displayed for sale
  2. Must mark each item with a price tag indicating the cash price of each unit, unit of weight or measurement of each the goods;
  3. In the event that the type or size of the goods cannot be appropriately  marked on the item due to type or size, retailers may use a price list to give the description of the goods and prices clearly;
  4. The description and price shall be indicated in Bahasa Malaysia and shall be translated if the retailer does not understand Bahasa Malaysia.
  5. The size and color of the price tag shall be clearly visible to the user;
  6. Prices shall be stated in Ringgit Malaysia (RM);
  7. The customer shall have access to the price of goods at all times

If it is found that a trader does not comply with the law in respect of this scheme, the consumer may channel complaints to the Ministry through:

  1. Line 03-8000 8000 1Malaysia One Call Centre (1MOCC)
  2. Toll free line of Information and Strategic Operations Movement Center (PIGOS)   1-800-886-800
  3. Smartphone App Ez ADU
  4. Emelil to e-aduan@kpdnkk.gov.my
  5. SMS to 15888 and type “detail of complaint”
  6. vi. Report/present to any KPDNHEP office nationwide.

Failure to place a price tag or price list of items for sale

Offenses under Price Control Order (Price Indication by Retailer) 1993

For Non Corporate Bodies (Individuals)

  1. Maximum Fines – RM50,000 or 2 years jail or both
  2. Maximum Compound – RM 25,000

For Corporate Organizations (Company)

  1. Maximum Fines – RM100,000
  2. Maximum Compound – RM 50,000