Appendix I (English)
ONLINE PUBLIC CONSULTATION STAGE 1 : PRELIMINARY VIEWS ON
PROPOSED AMENDMENT TO TRADE DESCRIPTIONS ACT 2011
YBhg. Tun/ Tan Sri/ Dato’ Sri/ Datuk Seri/ Dato’/ Datuk/ Datin/ Mr and Mrs,
Salam 1Malaysia,
Please be informed that the Ministry of Domestic Trade, Co-operatives and Consumerism
(KPDNKK) is in the midst of amending the Trade Descriptions Amendment (Price
Descriptions) 2015 and the Trade Descriptions (Retail Grocery Industry – Unit Pricing)
Regulations 2015. The regulations should be read together with Trade Descriptions Act
2011.
1. Single Pricing – Trade Descriptions Amendment (Price Descriptions) 2015
The main purpose of these regulations is to ensure that the Single Price is displayed on
every goods or services which is offered to consumers.
Thus the Single Pricing Policy is described accordingly:
“When prices are advertised, products must clearly display a Single Price 1 which is the
minimum total cost that is able to be calculated which the consumer must pay in order
to obtain the goods or services. This should include:
(i)
The price of all aspects of the final product and service.
(ii)
All taxes, duties, charges and extra fees.”
KPDNKK has received complaints submitted by consumers regarding manipulative and
confusing price displays and hidden surcharges which are usually concealed in
small text fine-prints and disclaimers.
Businesses have complained that inconsistent pricing practices results in unfair
advantages and causes unfair competition in a price-sensitive industry
1
At the point of “Invitation to treat”
This policy will tackle misleading and confusing prices. The main industries involved are
Airlines, Restaurants & Hotels and Telecommunications.
(i)
Example: Restaurants & Hotels
Price displayed
RM 270.00
Service Charge
RM 27.00
GST
RM 17.82
Minimum total cost
RM 314.82
Usually concealed in fineprints or disclaimers
(Single Price of RM 314.82 must be clearly displayed, not the Misleading Price RM
270.00)
(ii)
Example: Airlines
Price displayed:
RM 206.00
Airport Tax
RM 110.00
Passenger Service Fee
RM 52.90
Minimum total cost
RM 368.90
Usually concealed in fineprints or disclaimers
(Single Price of RM 368.90 must be clearly displayed, not the Misleading Price RM
206.00)
2. Unit Pricing – Trade Descriptions (Retail Grocery Industry – Unit Pricing)
Regulations 2015
Unit Pricing is a supplementary of the Single Pricing Policy, it will only be used in the
Retail Grocery Industry. The Unit Price is the additional display of prices by units of
measurement (e.g. 100 grams, 100 millilitres, per metre) on items which are quantifiable
by volume, weight, length, number and etc.
This policy will tackle the problem of package downsizing which is the reduction of
quantity in packages while maintaining the same price.
The Unit Price will allow consumers to easily keep track and compare the price-perquantity purchased, to combat the practice of suppliers manipulating the quantity and size
of their products.
(i)
Example: Package Downsizing
Price:
RM 10.00
Quantity
Unit Price
500 g
RM 2.00
Same
Price:
Downsized
Quantity:
Increased
Unit Price:
RM 10.00
400 g
RM 2.50
(Unit Price helps consumers keep track of package downsizing and reduces
comparative costs)
In line with the Government’s commitment to ensure that this amendment to be made in
a transparent manner and taking into account feedback from relevant stakeholders, it is
the responsibility of KPDNKK to hold this online public consultation.
The objectives of the proposed amendment is shown in Appendix I. Therefore, KPDNKK
would like to invite all relevant stakeholders and any other interested parties to participate
in this public consultation process and to communicate their views and feedback.
Kindly forward any feedback before or on 14 August 2015 (Friday) via email to
jarren@kpdnkk.gov.my or fax: +603 8882 6860 using the attached Appendix II.
Alternatively, it can also be submitted with a formal cover letter to the address below:
Director
Consumer Policy and Research Division
Ministry of Domestic Trade,
Co-operatives and Consumerism
No. 13, Level 4, Persiaran Perdana, Precinct 2
Federal Government Administrative Centre
62623 Putrajaya
Further enquiries, please contact:
(i)
(ii)
(iii)
Mr. Jarren Tam +603 8882 6399, or
Mrs. Fatihah Nazaliza +603 8882 5944, or
Mrs. Latifah Nor +603 8882 5973
Please refer the attached:


Appendix I: Objectives of Proposed Amendments To Trade Descriptions Act
2011; and
Appendix II: Online Public Consultation
Thank you.
Appendix I (English)
Objectives of Proposed Amendments to Trade Descriptions Act 2011
Single Pricing
Trade Descriptions Amendment (Price Descriptions) 2015
Objectives of the policy must include these aspects which form the basis of Single Pricing.
These provisions must be provided in the law:
1. Single Price must be displayed, clearly visible and easily understandable at the
point of the recommended price (in advertisements, catalogues, publications etc.).
2. Single Price must be as PROMINENT as the most prominent component parts of
the price representation.
Example:
RM 50 (Base Fare) + RM 35 (Airport Tax) + RM 15 (Passenger Fee) = RM 100
(Single Price)
(Single Price must be as prominent as Base Fare in font size, legibility and format)
3. The Single Price must be clearly displayed ON THE SAME PRICE TAG / PAGE /
WEBPAGE / ADVERTISING BOARD as the component parts.
4. Single Pricing only applies to Business-To-Consumer transactions (It will not apply
to Business-To-Business transactions).
5. There must be an exception for location-dependent delivery/shipping fees; such
as delivery to East Malaysia as compared to delivery in KL. However, the Single
Price for both East Malaysia and KL must be prominently displayed.
6. For recurring and on-going charges which are quantifiable such as consumer
contracts in Telecommunications (Maxis, DiGi, Celcom) packages, the final Single
Price value of the contract must be prominently displayed.
Example:
RM 100 (Monthly Fee) X 24 Months = RM 2400 (Single Price)
(Single Price must be as prominent as Monthly Fee in font size, legibility, and
format)
7. Definition of Single Price must reflect the minimum total cost attainable by the
consumer when purchasing goods or services. No exceptions must be made. As
long as it is compulsory to pay, that aspect must be in the Single Price.
8. There will be an exception for OPTIONAL aspects of a price such as additional
insurance or premium seats on flights. These optional charges do not need to be
included in the Single Price because it does not account for the minimum total cost.
9. Ensure that all provisions apply to all consumer industries and to online
transactions because the e-commerce industry will keep growing larger.
Unit Pricing
Trade Descriptions (Retail Grocery Industry – Unit Pricing) Regulations 2015
Objectives of the policy must include these aspects which form the basis of Unit Pricing.
These provisions must be provided in the law:
1. Unit Pricing should apply to both physical and online grocery stores (guidelines are
applicable to stores who voluntarily display unit prices to ensure consistency).
2. Unit Pricing to only be applicable to large scale stores while small grocery stores
(mostly in the informal sector) will be exempted.
3. The Unit Price should be displayed prominently and in close proximity to the
recommended price.
4. Exemptions from showing a Unit Price should include goods which are:
(a) packaged in a bundle with dissimilar products and offered at a single price; or
(b) damaged or expired by a certain date.
5. In advertisements, Unit Pricing to apply to printed media and online websites only.