Traders risk RM100,000 fine for hidden charges, Parliament told

KUALA LUMPUR, Nov 3 — Traders who impose hidden charges or disclose additional fees only at the final stage of a transaction may face legal action, including fines of up to RM100,000, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.

He said the practice misled consumers and undermined their right to know the actual price before making a purchase.

“This means consumers should have clear information on the amount they need to pay, rather than discovering certain charges at the final stage of a transaction,” he said in a written reply in the Dewan Rakyat today.

He was responding to a question from Muhammad Islahuddin Abas (PN-Mersing) on measures taken by the ministry to curb the practice of imposing additional or hidden charges disclosed only at the final stage of a transaction, resulting in the actual price exceeding the displayed or advertised price, particularly in the services, food and beverage, and online transaction sectors.

Armizan said Section 10B(1) of the Price Control and Anti-Profiteering Act 2011 [Act 723] allows action against businesses that fail to include all taxes, duties, and other charges in the prices of goods or services they display, advertise, publish, or quote.

The same Act stipulates under Section 57 that corporate bodies found in breach of the provision may be fined up to RM100,000, while individuals face penalties of up to RM50,000 in fines, two years’ imprisonment, or both.

He said the Domestic Trade and Cost of Living Ministry (KPDN) also had enforcement powers under the Consumer Protection Act 1999 [Act 599], particularly Section 12(1)(a), which makes misleading representations about the price of goods or services an offence.

Section 12(3)(c) of the Act further stipulates that a price display is considered misleading if it gives the impression that the stated price covers everything, when additional charges are in fact imposed separately.

“Sections 9 and 10 of the Act also prohibit false or misleading claims about the nature and characteristics of goods or services. The provisions cover both transactions at physical business premises and online transactions.

“Those found in breach of the relevant provisions may be penalised under Section 145 of Act 599. The penalty for corporate bodies is a fine of up to RM100,000, while individuals may be fined up to RM50,000, jailed for up to three years, or both,” he said.

Armizan said KPDN had introduced guidelines on the All-Inclusive Pricing Policy to promote price transparency, particularly in the food and beverage, e-commerce and delivery sectors, requiring consumers to be informed of the total price, including the base price, service charges and delivery fees, before confirming an order.

He said the ministry also enforced the Price Control and Anti-Profiteering (Price Marking of Goods and Charges for Services) Order 2020, which requires service providers and business premises to display clearly and prominently a list of services offered and the charges imposed.

“The ministry will continue to step up monitoring and enforcement to ensure traders comply with price disclosure requirements, and urges consumers to check the final price before making payment.

“Consumers should also report to KPDN any instances of hidden fees or discrepancies between advertised prices and the actual amounts charged,” he added. — Bernama