TOPIC 1 : IN T R OD U C T IO N

CO NSUM ER L AW DIL 223 6

MADAM NORULJANNAH ABDUL RAHMAN

FLE, IIC
CONTENT
1.1 WHO IS A CONSUMER?
1.2 INDIVIDUAL NOT CONTRACTING IN A BUSINESS CAPACITY.
1.3 SUPPLIER ACTING IN THE COURSE OF A BUSINESS.
1.4 THE CONTEXT OF CONSUMER PROTECTION
1.5 HISTORICAL CONTEXT
1.6 WHY PROTECT THE CONSUMER?
1.7 RATIONALE FOR CONSUMER PROTECTION.
1.1 WHO IS A CONSUMER?
Section 3(1) of CPA 1999:
"Consumer" means a person who-
(a)acquires or uses goods or services of a kind ordinarily acquired for personal, domestic or
household purpose, use or consumption; and
(b)does not acquire or use the goods or services, or hold himself out as acquiring or using the
goods or services, primarily for the purpose of-
(i)resupplying them in trade;
(ii)consuming them in the course of a manufacturing process; or
(iii)in the case of goods, repairing or treating, in trade, other goods or fixtures on land;
• IN OTHER WORDS, CONSUMER MEANS:
1.  AN INDIVIDUAL WHO ACQUIRES OR USES OR BUYS GOODS OR SERVICES
ORDINARY FOR PERSONAL, DOMESTIC OR HOUSEHOLD PURPOSE, USE OR
CONSUMPTION.
2. AN INDIVIDUAL WHO PURCHASE, USES OR ACQUIRES GOODS OR SERVICE
PRIMARILY FOR BUSINESS PURPOSE OR PURCHASED OR ACQUIRES GOODS
OR SERVICE IN THE NAME OF A COMPANY IS NOT A CONSUMER.
 1.2
INDIVIDUAL NOT CONTRACTING
IN A BUSINESS CAPACITY
 OFFER

CERTAINTY ACCEPTANCE

ELEMENTS of a
valid contract

INTENTION
TO CREATE
LEGAL CAPACITY
RELATION

CONSIDERATION
LEGAL CAPACITY

• SECTION 11 OF CONTRACT ACT 1950, THE PARTIES ENTERING INTO A CONTRACT SHOULD BE COMPETENT TO
CONTRACT, OF SOUND MIND AND NOT LEGALLY DISQUALIFIED.

* COMPETENT: ATTAIN AGE OF MAJORITY

* SOUND MIND: A HEALTHY MIND OR NOT INSANE
* NOT LEGALLY DISQUALIFIED: NOT BANKRUPT OR NOT A CRIMINAL
WHO IS THE AGE OF MAJORITY?

• SECTION 2 OF THE AGE OF MAJORITY ACT 1971, THE MAJORITY AGE IS 18 YEARS OLD.
THEREFORE, A VALID CONTACT MAY BE MADE BY PERSON ABOVE 18 YEARS OLD.

• THIS IS ILLUSTRATED IN THE CASE OF TAN HEE JUAN V TEH BOON KEAT [1934] MLJ 96, IT
WAS HELD THAT TRANSFERS OF LAND EXECUTED BY AN INFANT WAS VOID.
Areas Excluded from CPA 1999
Section 2(2) of CPA 1999:
This act shall not apply-

(a) to securities as defined in the *Securities Industry Act 1983 [act 280];
(b) to futures contracts as defined in the *Futures Industry Act 1993 [act 499];
(c) to contracts made before the date on which this act comes into operation;
(d) in relation to land or interests in land except as may be expressly provided in this act;
(e) to services provided by professionals who are regulated by any written law;
1.3 SUPPLIER/TRADER ACTING IN
THE COURSE OF A BUSINESS
Section 3(1) of CPA 1999:
"Supplier" means a person who, in trade-
(a) supplies goods to a consumer by transferring the ownership or the possession of the goods under
a contract of sale, exchange, lease, hire or hire-purchase to which that person is a party; or
(b) supplies services to a consumer, and includes-
(i) where the rights of the supplier have been transferred by assignment or by operation of law, the person
for the time being entitled to those rights;
(ii) a financier who has lent money on the security of goods supplied to a consumer, if the whole or any part
of the price of the goods is to be paid out of the proceeds of the loan and if the loan was arranged by a
person who, in trade, supplied the goods;
(iii) a person who, in trade, assigns or procures the assignment of goods to a financier to enable the
financier to supply those goods, or goods of that kind, to the consumer; and
(iv) a person who, in trade, is acting as agent for another person where that other person is not supplying in
trade;
Section 3(1) of CPA 1999:
"Supply", in relation to-
(a) goods, means to supply or resupply by way of sale, exchange, lease, hire or hire-purchase;
(b) services, means to provide, grant or confer;

"Trade" means any trade, business, industry, profession, occupation, activity of commerce or
undertaking relating to the supply or acquisition of goods or services;
 1.4
THE CONTEXT OF
CONSUMER PROTECTION
CPA 1999
Section 2 (1), this Act
shall apply in respect of
all goods and services
that are offered or
supplied to one or more
consumers in trade
including any trade
transaction conducted
through electronic
means.
• Consumer protection seeks to support and protect
consumer interests.

• As such, it aims to promote:

• the response of industry to consumer needs,
• the confidence of consumers in service quality,
• the extensive availability of services and the affordability of
services, realized through the development and enforcement
of consumer codes and standards,
• the resolution of consumer disputes, effective rate regulation,
and a system of universal service provision

(Malaysian Communication And Multimedia Commission).

• Consumer protection safeguards the well-being and interests of consumers through
education, mobilization and representation.

• Consumer protection ensures that consumers make well-informed decisions about their
choices and have access to effective redress mechanisms.

• It also pushes for businesses to guarantee the quality of the products and services they offer.
• In order to have a functional consumer protection system, the government, businesses and
consumers need to work together.

• The government needs to put in place adequate policies, laws and regulations to ensure that
consumers are protected from harmful business practices.

• There also has to be an effective interplay and coordination between the relevant institutions
that are responsible for implementing consumer protection.
• Consumer protection in Malaysia is carried out in a variety of ways.
• These include:
1. the formulation and implementation of national policies pertaining to consumer protection;
2. the enforcement of existing legislations related to consumer protection;
3. the formulation of new legislation and amendments to old laws;
4. the conduct of education programmes for the public, school children and university students;
5. the promotion of school consumer clubs, seminars and conventions;
6. the allocation of grants to and smart partnerships and joint programmes with consumer
organisations; and
7. redress mechanisms
1. the formulation and implementation of national policies pertaining to consumer protection;
2. the enforcement of
existing legislations related
to consumer protection;
3. the formulation of new legislation and amendments to old laws;
4. the conduct of education programmes for the public, school children and university students;
5. the promotion of school consumer clubs, seminars and conventions;
6. the allocation of
grants to and smart
partnerships and joint
programmes with
consumer
organisations;
7. Redress mechanisms
(Consumers who have problems
with goods or services have
recourse to the tribunal for
consumer claims or the small
claims court; those with
problems with developers can
seek the tribunal for homebuyers
claims while those with banking
or insurance problems can resort
to the financial mediation bureau
(FMB). )
1.5 HISTORICAL CONTEXT
• It can be traced back to the USA. In 1975, in an attempt to offer better consumer protection and to
promote fairer and more ethical domestic trading practices, the US congress enacted the
Magnuson-moss Warranty Act – commonly known today as the federal lemon law.

• Essentially, such laws provide relief to aggrieved consumers who bought products that are
defective (i.e. Those goods that repeatedly fail to meet standards of quality and performance).

• In other words, they afford protection to consumers who have, to their misfortune, received a
"lemon".

• In 1962, J.F. Kennedy, (US president) had announced that there are 4 basic rights of  a consumer – r
ight to safety, right to be informed, right to choose and right to express ideas

• Lemon laws in the USA were first intended to cover purchases of cars, but were thereafter
extended to cover most other general consumer products.
• Consumer law during the Roman period. The aim was to provide commercial operations with
legal protections and to Provide consumer protection to roman citizens. It was also to protect
Commercial monopoly from happening.

• Consumer law in ancient India ( Manu Smitri ) aim on punishment against buyers.
• Eg. any goods sold must not be mixed, not bad one, not even less weight.
• Malaysian system – using barter system. As time passed by, the colonization and development
changed the system. We got the consumer law protection from the basic rules in contract and
tort where it was formulated in England.

• CPA1999 was enacted to address the pressure of increasing inequality in Malaysia

• In Malaysia, remedies for defective goods are found primarily in the Sale Of Goods Act 1957 and the
Consumer Protection Act 1999.

• Parts V and VI (sections 30 to 49) of the CPA contain provisions that confer certain implied
guarantees in respect of consumer goods and set out the remedies available to a consumer where
such goods fail to comply with any of the implied guarantees.

• Sections 32, 33 and 34 of the CPA provide implied guarantees that the goods must be of acceptable
quality, reasonably fit for specified purposes and where the goods are sold by description, correspond
with their description.

• The remedies conferred upon a consumer in the case of non-conformity with implied guarantees as
set out in sections 41 and 42 of the CPA.

• The CPA contains provisions in parts VIII and IX (sections 53 to 65) that confer certain implied
guarantees and set out the remedies available to a consumer where services fail to comply with any of
the implied guarantees.
• In Matang Plastik & Metal Work Industries Sdn Bhd v Daimler Chrysler Malaysia Sdn
Bhd & Ors [2014] MLJU 674, the court of appeal held that the implied guarantees in the
CPA apply to a used car, thereby establishing that the cpa applies to second-hand goods.

• A Tribunal for Consumer Claims has been established under the CPA to provide an
alternative and less costly avenue, apart from the courts, to dispose of claims that fall within
the ambit of the CPA. Unless otherwise agreed by the parties, the tribunal has a
jurisdictional limit of RM25,000.
1.6 WHY PROTECT THE CONSUMER?

1.7 RATIONALE FOR CONSUMER

PROTECTION.
 WHY IS CONSUMER PROTECTION IMPORTANT?

1. Consumers 

• Consumers need to be able to obtain accurate, unbiased information about the products and services they purchase. This
enables them to make the best choices based on their interests and prevents them from being mistreated or misled by
businesses. Consumer protection policies, laws and regulations help increase consumer welfare by ensuring that businesses
can be held accountable.
2. Businesses

• Businesses that are known to treat consumers fairly will gain a good reputation and become more sought after. This
increases their profitability and competitiveness which will also lead to economic growth in the long run. Consumer
protection policies, laws and regulations guarantee that businesses are kept in check.
3. Economic growth and competitiveness

• Consumer protection contributes to dynamic and effective markets for businesses to grow. Consumer demand drives
innovation and economic development as businesses are required to maintain fair prices and good quality of their products
and services.