Domestic Trade Ministry: Traders in Malaysia allowed to organise cheap sales without quotas

Women walk past a shop advertising Deepavali items for sale in Little India, Brickfields, Kuala Lumpur, October 17, 2014. — Picture by Yusof Mat Isa
Women walk past a shop advertising Deepavali items for sale in Little India, Brickfields, Kuala Lumpur, October 17, 2014. — Picture by Yusof Mat Isa

PUTRAJAYA, Aug 3 — Traders are now allowed to organise cheap sales without quotas according to suitability and affordability, said the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP).

KPDNHEP enforcement director Datuk Iskandar Halim Sulaiman said it was following the gazetting of amendments to the Trade Descriptions (Cheap Sale Price) (Amendment) Regulations 2019 effective Jan 2, which improved legal provisions related to the organisation of cheap sales.

Previously, he said, there was a quota limit of four times a year for holding cheap sales. Three of those times were based on the period and date set by the government while one was chosen by the trader.

“The amendment to this rule aims to make enforcement related to cheap sales more relevant in line with current trade developments,” he said in a statement today.

Iskandar said improvements had also been made to the cheap sale notice system so that traders no longer had to wait a long time for approval from KPDNHEP to get a cheap sale notice number.

“The cheap sale notice number will be given automatically once the application for this notice has been completed by the trader in the online cheap sale notice application system,” he said.

Iskandar said KPDNHEP also agreed to shorten the period for submitting a cheap sale application from 14 days to one day before a trader holds a cheap sale, to support the creativity and market strategy of traders.

“Through this amendment, traders no longer have a reason not to apply for a cheap sale notice as they can apply for one within one day before the date of the sale,” he said.

Meanwhile, Iskandar said KPDNHEP not only took into account industry views in drafting the policy but also took into account consumer rights.

According to him, the existing provisions in the rules are maintained to protect consumers, in addition to penalising traders who make false or misleading statements in cheap sale offers and advertisements.

“This is to ensure that cheap sale activities held are ethical because there have been complaints of cheap sale advertisements not reflecting the actual price of the goods given the discounted sale price, “he said.

Iskandar also said the KPDNHEP has also developed smartphone application MySales Tracker to facilitate users to review cheap sale activities that take place around them.

Through the application, users can do a quick search related to cheap sales based on brands or premises, and can also make a complaint if there are any traders who carry out false or misleading cheap sale activities.

Iskandar added that the improvement in cheap sale rules, seen as more trader-friendly without neglecting the consumer protection aspect, will increase competitiveness in offering cheap selling prices which will directly help reduce the cost of living of the people. — Bernama

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