KPDNHEP to review direct sales law in line with digitalisation


THE Domestic Trade and Consumer Affairs Ministry (KPDNHEP) will review the Direct Sales and Anti-Pyramid Scheme Act 1993 to ensure the act is aligned with the current business model amid technological advancement.

Its secretary general Datuk Seri Hasnol Zam Zam Ahmad said some of the aspects that will be looked at are its relevance within the e-commerce business and digital age.

“The act was last revised in 2011, where the ecosystem of e-commerce was not as it is now.

“After meetings with industry players, both parties have agreed that it is time to relook at some of its chapters, such as the outdated 10 days ‘cooling-off period’ required to enable consumers to reconsider their decision to buy the product,” he said after chairing the roundtable session with the Direct Sales Association (DSAM) and Direct Distribution Association (MDDA) in Putrajaya yesterday.

Hasnol said the ministry will establish a committee, consisting of DSAM and MDDA, which is being given six months to conduct surveys, town hall sessions and gather public opinions.

He expects the draft of the revised framework to be presented in Parliament by the end of next year after receiving legislative input from the Attorney General’s Chambers.

“We are giving the committee six months to gather as many opinions and information on the framework and by the first quarter of 2021, we could begin the amendment process.

“We expect the draft to be presented in Parliament by the end of next year. However, if we find the necessary revisions are not as critical, the process could be faster,” he said.

According to the World Federation of Direct Selling Association, Malaysia was ranked seventh globally in sales value last year with an estimated RM18.7 billion, making it the fourth-largest in Asia Pacific.

The ministry had targeted for the industry to achieve RM20 billion in annual sales revenue by 2020. As of July this year, the sales revenue had reached RM16.9 billion.

“We are working on achieving this target. Obviously, this year is quite different due to the pandemic, but going by the nature of this industry, some of the players managed to conduct their businesses due to the relevance of their products.

“As transactions could be done online, some industry players are not affected at all. We expect to meet this year’s target,” he said.

Based on official data, wellness products contributed 47% of direct sales revenue annually, followed by self-care and cosmetics products at 19%, house appliances at 16%, food and beverage at 8% and clothing and accessories at 5%.