Bridging the Legal Gap: Strengthening Malaysia's E-Commerce Consumer Protection Framework Against Fraudulent Transactions

The exponential growth of e-commerce in Malaysia has been accompanied by a dramatic surge in fraudulent transactions, with online fraud cases doubling from 17,668 in 2019 to 34,495 in 2023, a whopping 95.2% increase. Despite existing legislation including the Consumer Protection Act 1999, Electronic Commerce Act 2006, and Personal Data Protection Act 2010, significant regulatory gaps persist in addressing sophisticated e-commerce fraud. This article critically examines the inadequacies of Malaysia’s current legal framework through comparative analysis with China and the United States, identifies specific legislative deficiencies, and proposes actionable reforms. Key findings reveal that Malaysia’s consumer protection laws suffer from ambiguous terminologies, limited liability provisions for online marketplace operators, inadequate enforcement mechanisms, and insufficient cross-border dispute resolution frameworks. Drawing on recent scholarship and international best practices, this article recommends comprehensive legislative amendments, enhanced institutional coordination, and adoption of technology-driven enforcement strategies to safeguard Malaysian consumers in the digital marketplace.