Definition of ‘Deceit’ in Online Purchase: Analysis of Legal Provisions in Malaysia

Abstract

It is widely known that online shopping has several advantages including time and energy-saving as well as its diversity in making choices. In spite of that, online purchasing activities are prone to a certain number of misuses, particularly to the exposure of fraud and deception by online merchants. Therefore, this article intended to address the necessity for a specific and clear definition of deceit in the context of online purchases. The need for up-to-date legal provisions is crucial to ensure consumers’ protection from any acts of deception by irresponsible merchants, taking into account the act of misleading consumers through unclear definitions and elements of deceit within online purchases in accordance with existing laws. Using content analysis methodology, the existing legal provisions on fraud have been reviewed by focusing on Section 17 of the Contracts Act 1950 in Malaysia alongside regulations on e-commerce fraud practices implemented in the United States, European Union, and Australia. Furthermore, a review of literature from past scholars is included to evaluate their point of view towards e-commerce deception. This article finds that there is a need to provide a distinct and precise definition of deceit and fraud against online purchases through existing legal provisions. It is suggested that Section 17 of the Contracts Act 1950 should include terms that denote its application in the electronic context apart from improving and clarifying the definition and elements of existing provisions to ensure the protection of consumers from the acts of deceit in online purchases.

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