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Consumer Protection Act 1999 Part II — Misleading and deceptive conduct, false representation and unfair practice

s 8–s 18 · 11 sections

Interpretation

s 8

For the purposes of this Part— (a) “false”, “misleading” or “deceptive”, in relation to conduct, representation or practice, includes conduct, representation or practice which is capable of leading a consumer into error; and (b) “price”, in relation to any goods or services, in addition and without prejudice to the generality of the definition of “price” in section 3, means— (i) the aggregate of the sums required to be paid by a consumer for or otherwise in respect of the supply of the goods or services; or (ii) except in subsections 12(3) and (4), any method which will be or has been applied for the purpose of determining the aggregate.

Misleading conduct

s 9

No person shall engage in conduct that— (a) in relation to goods, is misleading or deceptive, or is likely to mislead or deceive, the public as to the nature, manufacturing process, characteristics, suitability for a purpose, availability or quantity, of the goods; or (b) in relation to services, is misleading or deceptive, or is likely to mislead or deceive, the public as to the nature, characteristics, suitability for a purpose, availability or quantity, of the services.

False or misleading representation

s 10

(1) No person shall make a false or misleading representation that— (a) the goods are of a particular kind, standard, quality, grade, quantity, composition, style or model; (b) the goods have had a particular history or particular previous use; (c) the services are of a particular kind, standard, quality or quantity; (d) the services are supplied by any particular person or by any person of a particular trade, qualification or skill; (e) a particular person has agreed to acquire the goods or services; (f) the goods are new or reconditioned; (g) the goods were manufactured, produced, processed or reconditioned at a particular time; (h) the goods or services have any sponsorship, approval, endorsement, performance characteristics, accessories, uses or benefits; (i) the person has any sponsorship, approval, endorsement or affiliation; (j) concerns the need for any goods or services; (k) concerns the existence, exclusion or effect of any condition, guarantee, right or remedy; or (l) concerns the place of origin of the goods. (2) In this section, “quantity” includes length, width, height, area, volume, capacity, weight and number.

False representation and other misleading conduct in relation to land

s 11

(1) No person shall in connection with the sale or grant or possible sale or grant of an interest in land or with the promotion by any means of the sale or grant of an interest in land— (a) falsely represent that any person has any sponsorship, approval, endorsement or affiliation; or (b) make a false or misleading representation concerning any or all of the following: (i) the nature of the interest in the land; (ii) the price payable for the land; (iii) the location of the land; (iv) the characteristics of the land; (v) the use to which the land is capable of being put or may lawfully be put; (vi) the existence or availability of facilities associated with the land. (2) In this section, “interest”, in relation to land, means a registered or registrable interest in the land, and includes— (a) a right of occupancy of the land or of a building or part of a building erected on the land, arising by virtue of the holding of shares or by virtue of a contract to purchase shares in a company that owns the land or building; or (b) a right, power or privilege over or in connection with the land. (3) This section does not apply to housing accommodation as provided under the Housing Developers (Control and Licensing) Act 1966 [Act 118].

Misleading indication as to price

s 12

(1) A person commits an offence— (a) if he gives to a consumer an indication which is misleading as to the price at which any goods or services are available; or (b) if an indication given by him to a consumer as to the price at which any goods or services are available becomes misleading and he fails to take reasonable steps to prevent the consumer from relying on the indication. (2) For the purposes of subsection (1), it shall be immaterial— (a) whether the person who gives the indication is acting on his own behalf or on behalf of another; (b) whether or not the person who gives the indication is the person or included among the persons from whom the goods or services are available; (c) whether the indication is or becomes misleading in relation to all the consumers to whom it is given or only in relation to some of them. (3) For the purposes of this section, an indication given to a consumer is misleading as to a price or a method of determining a price if what is conveyed by the indication, or what the consumer may reasonably be expected to infer from the indication or any omission from it, includes any of the following: (a) that the price or method is not what in fact it is; (b) that the applicability of the price or method does not depend on facts or circumstances on which it does in fact depend; (c) that the price covers or the method takes into account matters in respect of which an additional charge is in fact made; (d) that a person who in fact has no such expectation, expects— (i) the price to be increased or reduced, whether or not at a particular time or by a particular amount; (ii) the price, or the price as increased or reduced, as the case may be, to be maintained, whether or not for a particular period; (iii) the method to be altered, whether or not at a particular time or in a particular respect; or (iv) the method or the method as altered, as the case may be, to remain unaltered, whether or not for a particular period; (e) that the facts or circumstances by reference to which the consumer may reasonably be expected to judge the validity of any relevant comparison made or implied by the indication are not what they in fact are. (4) For the purposes of paragraph (3)(e), a comparison is a relevant comparison in relation to a price or a method of determining a price, as the case may be, if the comparison is made between that price or method or any price which has been or may be determined by that method, and— (a) any price or value that is stated or implied to be or to have been or to be likely to be attributed or attributable to the goods or services in question, or to any other goods or services; or (b) any method or other method that is stated or implied to be or to have been or to be likely to be applied or applicable for the determination of the price or value of the goods or services in question, or of the price or value of any other goods or services.

Bait advertising

s 13

(1) No person shall advertise for supply at a specified price goods or services which that person— (a) does not intend to offer for supply; or (b) does not have reasonable grounds for believing can be supplied, at that price for a period that is, and in quantities that are, reasonable having regard to the nature of the market in which the person carries on business and the nature of the advertisement. (2) In a prosecution for a failure to offer goods or services to a consumer in accordance with subsection (1), it shall be a defence if the person charged proves that— (a) he offered to supply or to procure another person to supply, to the consumer, within a reasonable time, goods or services of the kind advertised, in a reasonable quantity and at the advertised price, and where the offer is accepted by the consumer, that the person has so supplied or procured another person to supply, the goods or services; or (b) he offered to supply to the consumer immediately, or to procure another person to supply to the consumer within a reasonable time, equivalent goods or services, in a reasonable quantity and at the advertised price, and where the offer is accepted by the consumer, that the person has so supplied or procured another person to supply, such equivalent goods or services.

Gifts, prizes, free offers, etc.

s 14

(1) No person shall offer any gift, prize or other free item— (a) with the intention of not providing it; or (b) with the intention of not providing it as offered. (2) No person shall in offering any gift, prize or other free item with the purchase of any goods or services, whether or not contingent on the purchase of other goods or services— (a) charge more than the regular price for the goods or services to be purchased; or (b) reduce the quantity or quality of the goods or services to be purchased. (3) A person who offers a gift, prize or other free item may impose any reasonable condition on the offer. (4) Where a person imposes a condition on the offer, he shall— (a) describe the condition clearly; (b) ensure that the description of the condition is conspicuously placed near the expression “free” or “free offer”, as the case may be; and (c) ensure that the print of the description of the condition is at least half as large as the print used for the expression “free” or “free offer”. (5) For the purposes of this section— “free” or “free offer” includes any expression of similar meaning; “regular price” means the price at which similar goods or services are regularly sold on the market.

Claim that goods are limited

s 15

(1) No person shall, in supplying or offering to supply goods for sale to consumers, describe the goods as limited unless their edition, printing, minting, crafting or production is restricted to— (a) a pre-determined maximum quantity; or (b) the actual quantity ordered or subscribed to within a specified and reasonably short period of time. (2) A claim that goods are limited shall state clearly— (a) the maximum quantity of goods which are offered for sale; and (b) the specific time period or dates for which the goods are offered for sale. (3) The statements required under subsection (2) shall be conspicuously placed near the claim.

Demanding or accepting payment without intending to supply

s 16

No person shall demand for or accept, any payment or other consideration for goods or services, if at the time of the demand or acceptance that person— (a) does not intend to supply the goods or services; (b) intends to supply goods or services materially different from the goods or services in respect of which the payment or other consideration is demanded for or accepted; or (c) does not have reasonable grounds to believe he will be able to supply the goods or services within any specified period, or where no period is specified, within a reasonable time.

Future services contract

s 17

(1) For the purposes of this section, “future services contract” means a contract for consumer services that will be provided on a continuing basis and as prescribed by the Minister from time to time. (2) A consumer who cancels a future services contract may be charged by the supplier the following amount: (a) five percent of the full contract price; (b) the cost of any goods the consumer used or is keeping; or (c) the portion of the full contract price representing services received by the consumer. (3) Where the consumer has paid the supplier more money than the supplier is entitled to charge under paragraph (2)(a), (b) or (c), the supplier shall refund the extra payment or make a refund available, within fourteen days of cancellation. (4) A cancellation of a future services contract shall take effect— (a) at the time at which the cancellation is communicated to the supplier; or (b) where it is not reasonably practicable to communicate with the supplier, at the time at which the consumer indicates to the supplier, by means which are reasonable in the circumstances, his intention to cancel the future services contract. (5) Subject to subsection (6), a cancellation of the future services contract may be communicated by words or conduct or both which indicate the intention of the consumer to cancel the contract, and it shall not be necessary to use any particular form of words, as long as the intention to cancel is clear. (6) Where it is reasonably practicable to communicate with the supplier, subsection (5) shall take effect subject to any express provision in the future services contract requiring notice of cancellation to be in writing.

Presumption of liability for advertisement

s 18

Where the conduct or representation in relation to any goods or services is made or published in an advertisement, the advertisement shall be deemed to have been made by— (a) the person who directly or indirectly claims to supply the goods or services; (b) the person on whose behalf the advertisement is made; or (c) both of them, as the case may require, unless the contrary is proved.

Back to Consumer Protection Act 1999 — full text

Provisions on this page are reproduced verbatim from official open data. See the attribution line.

Text as at 1 November 2019 (LOM reprint); amendments made after that date may not be incorporated. Read the official text ↗

Source: Laws of Malaysia, Attorney General's Chambers of Malaysia (lom.agc.gov.my). Not a copy of the Gazette printed by the Government Printer (Interpretation Acts 1948 and 1967, s 61).

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