MORE and more Malaysians now shop online rather than in brick-and-mortar shops, departmental stores and malls.
With the new trend, instances of consumers getting shortchanged or outright cheated via e-commerce platforms are also growing.
It is thus most welcome and timely that the government is finally acting with the drafting of the E-Commerce Bill, hopefully to be tabled in Parliament soon.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali has announced that among the key features in the proposed law is a proposal to introduce a licensing regime for e-commerce platform operators, including those based overseas but offering services to Malaysians.
This is a sensible requirement of accountability, as any business entity targeting our consumers ought to come within the ambit of Malaysian rules and regulations.
Consumer protection, above all, must keep pace with the growth of digital commerce. Buyers should not be exposed to unsafe products, misleading claims, fraudulent sellers or unresolved disputes simply because transactions take place online.
Online platforms cannot remain as mere intermediaries. Marketplaces that profit from facilitating transactions must shoulder appropriate responsibility for the sellers of products on their platforms.
Licensing must, therefore, establish clear obligations rather than become just a box-ticking exercise. Protections must be afforded not just to Malaysian consumers, but also to our own online platforms.
There should not be any double standards where foreign platforms are not subject to laws governing Malaysian platforms. It is already tough enough for these platforms and sellers to compete against foreign counterparts, given the latter's business scale that our own online businesses can only dream of.
Malaysian businesses should not have to compete against foreign entities that exploit regulatory gaps or evade obligations imposed on domestic traders. Our traders deserve, at the very least, a level playing field.
While licensing and other regulations governing businesses, online and otherwise, are inevitable, the government must also watch against over-regulation.
The high cost and difficulty of doing business are often related to bureaucratic delays caused by compliance requirements. Strong oversight may be a necessary fact of doing business, but the regulatory framework should avoid imposing disproportionate compliance costs on smaller businesses or make it harder for legitimate domestic entrepreneurs to reach online customers.
There is also a case for aligning our e-commerce laws with international models, not least so that if our platforms go global one day, they will not be hamstrung. As commerce increasingly navigates online, these reforms cannot come any sooner.
Done right, updating our rules for digital commerce will build public confidence in online shopping security while ensuring a fairer environment for both consumers and Malaysian businesses.
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