Online Dispute Resolution for Consumers of E-Commerce in Malaysia: A Preliminary Study

Abstract

The internet and digital technologies have affected most of our live trend including consumer behavior, especially in the post-covid era. More and more consumers are using e-commerce to fulfil their needs whether goods or services, and hence there is also a rise in the number of disputes. In Malaysia, disputes involving consumers including consumers in e-commerce will be dealt using the traditional platform of judicial institutions or the Consumer Claims Tribunal established under the Protection of Consumers Act 1999, and until this paper is published, Online Dispute Resolution (ODR) has yet to be implemented. This paper provides the preliminary literature study on the need of ODR to be implemented in disputes involving consumers in e-commerce in Malaysia. This study using qualitative method by analyzing secondary data collected from previous studies in journals, articles, websites of other jurisdictions on ODR. Documents and other related studies on consumer protection in Malaysia were also examined. This paper shows that there is a need for Malaysia to implement the ODR to deal with disputes arise on e-commerce transaction for the interests of consumers in Malaysia as well as the e-commerce business itself. The results of this study may provide an input to law and policy makers to establish ODR as the prime means of dispute settlement in e-commerce transaction in Malaysia.