A government-regulated Online Dispute Resolution platform will streamline e-commerce dispute handling and combat online fraud efficiently.
PETALING JAYA: A more comprehensive Online Dispute Resolution (ODR) system is being developed to strengthen Alternative Dispute Resolution (ADR) mechanisms and provide a faster, more efficient way to resolve consumer disputes in the digital marketplace.
The Domestic Trade and Cost of Living (KPDN) Minister Datuk Armizan Mohd Ali told the Dewan Rakyat today, unlike ADR, which still relies on physical processes, ODR will fully utilise digital platforms to streamline negotiations, mediation, arbitration, and hearings.
“Under the e-commerce law reforms targeted for the upcoming parliamentary session, one of the planned improvements is the establishment of a government-regulated ODR platform, initially focusing on complaints and cases under the ministry, with plans to eventually expand across Malaysia’s entire e-commerce ecosystem.
“This improvement is necessary in view of the still-high volume of complaints, enhancing consumer protection while simultaneously developing a healthy, sustainable, and progressive e-commerce ecosystem,” he said.
Armizan added that between 2023 and 2025, a total of 136,082 complaints related to fraud or scams in commercial transactions were received, with 83,239 falling under the jurisdiction of the ministry.
“The category with the highest number of complaints involved allegations of online fraud, totaling 33,400 cases.
“These complaints included issues such as misleading pricing of goods or services, non-receipt of purchased items, goods or services not being as advertised, online piracy, counterfeit products, and the promotion of online pyramid schemes.”
Armizan said the penalties for fraud or scam cases vary depending on the offence and the law applied.
He said between 2023 and 2025, a total of 1,136 cases were handled under several laws, including the Consumer Protection Act 1999 (Act 599), Trade Descriptions Act 2011 (Act 730), Direct Sales and Anti-Pyramid Scheme Act 1993 (Act 500), Weights and Measures Act 1972 (Act 71), and Price Control and Anti-Profiteering Act 2011 (Act 723), with total fines reaching RM880,625.
“Under Act 599 specifically, two cases were brought to court for misleading pricing under Section 12, resulting in fines totaling RM16,500. These laws provide the legal framework for KPDN and other agencies to investigate and take action against fraud and scams involving commercial transactions.”
Armizan said that, given the high number of complaints received through KPDN’s platforms, one of the key recommendations from the study on e-commerce legal reforms is to establish a comprehensive dispute resolution framework.
He urged and encouraged the public to act as the “eyes and ears” of the authorities by submitting complete official complaints to enable prompt investigations.
“The ministry has the authority to monitor and investigate any form of false, misleading, or deceptive representation in business activities conducted by irresponsible parties towards consumers.
“The public is urged to continue providing information to ensure consumer interests are protected while ensuring businesses remain compliant with the enforced laws.”
The available channels for complaints include WhatsApp at 019-848 8000, email at eaduan@kpdn.gov.my, the Call Centre at 1-800-886-800, and the Ez ADU KPDN mobile application.
Armizan was responding to Datuk Rosol Wahid [PN-Hulu Terengganu], who asked on the total number of fraud or scam cases involving commercial transactions reported from 2023 to date, and how many of these cases had been brought to court during this period, and the types of penalties imposed.
