KPDN To Amend Direct Sales Act, To Boost Consumer Protection

PUTRAJAYA, Oct 2 (Bernama) -- The Ministry of Domestic Trade and Cost of Living (KPDN) is preparing to amend the Direct Sales and Anti-Pyramid Scheme Act 1993 (AJLSAP 1993) to provide better protection to consumers and legitimate sales representatives so that they are not trapped by problematic companies.

Its Deputy Minister Datuk Dr Fuziah Salleh said the move is important as the global direct selling industry continues to grow rapidly and Malaysia needs to ensure its laws are on par with other countries.

She said KPDN is committed to continuing to guide and ensure the integrity of the direct sales industry in Malaysia through legal compliance and prevention efforts against illegal activities.

Fuziah said that although the industry was showing positive developments, industry players needed to work harder to overcome the public's perception that was still confused between legitimate direct selling and pyramid schemes.

"This stigma undermined consumer confidence and this situation affected the reputation of legitimate direct sales companies," she said in a statement today.

Therefore, Fuziah said KPDN offered several solutions, including assistance in consumer advocacy to provide awareness and education to consumers to prioritise local products, including licensed direct sales products, and at the same time avoid pyramid schemes or counterfeit products.

"This is to improve the image of this industry so that it is seen as one of the contributors to the economy and entrepreneurial opportunities for the people," she said.

Ruziah said KPDN also encouraged direct sales entrepreneurs to cooperate with the Intellectual Property Corporation of Malaysia (MyIPO) by registering businesses, products or scientific discoveries that require patent protection.

"Registered trademarks can become a company's asset, and can even be licensed or used as investment holdings. In addition, products registered with the MyIPO trademark are seen as more legitimate, trustworthy and not easily counterfeited," she said.

She said intellectual property protection can also ensure that companies that sell products based on natural resources such as tongkat ali, kacip fatimah, sea cucumber, virgin coconut oil operate legally, as well as help companies take action against parties who imitate or sell counterfeit products.

Fuziah said one of KPDN's main agendas to support local products, including those from the direct selling industry, is through the Buy Malaysian Goods Campaign (KBBM).

"KBBM is not just a slogan, but an advocacy and marketing tool that helps promote locally made direct selling products, supports Malaysian entrepreneurs and sales representatives and paves the way to the global market," she said.

Last year, the direct sales industry recorded a sales value of RM34.4 billion, an increase of 7.4 per cent compared to the previous year, placing Malaysia in sixth place in the world and fourth in Asia Pacific, with the highest market penetration rate in the world of 2.28 per cent.

Earlier, Fuziah received a courtesy call from representatives of the Malaysian Direct Selling Industry Development Association (MDSIDA) led by its president Datuk Seri Barani Karunakaran.

MDSIDA, formerly known as the Malaysian Direct Distribution Association (MDDA), is a strategic partner of KPDN in promoting the direct selling industry at the national and international levels.

-- BERNAMA