Hidden charges may expose businesses to RM100,000 fines

Businesses risk legal action for concealing charges or revealing extra fees only when a transaction is being finalised, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said. Companies found to have breached pricing laws could incur fines reaching RM100,000.

In his Nov 3 written parliamentary response to Muhammad Islahuddin Abas (PN-Mersing), Armizan said buyers were entitled to know the actual purchase price beforehand. The question concerned undisclosed fees across services, food and beverage, and online transactions.

Armizan cited Section 10B(1) of the Price Control and Anti-Profiteering Act 2011 [Act 723], saying prices communicated by businesses must account for taxes, duties and any other charges. Section 57 provides for a maximum corporate fine of RM100,000. For individuals, the penalties are a maximum fine of RM50,000, two years' imprisonment or both.

He also pointed to the Consumer Protection Act 1999 [Act 599], under which misleading price representations are offences. This includes suggesting that a price covers everything while imposing separate charges. Its provisions extend to online purchases as well as transactions at business premises. Under Section 145, corporate offenders face a maximum fine of RM100,000, while individuals risk a maximum fine of RM50,000, imprisonment of up to three years, or both.

According to Armizan, the Domestic Trade and Cost of Living Ministry (KPDN) has introduced All-Inclusive Pricing Policy guidelines requiring disclosure of the full payable amount before customers confirm orders. The amount must cover the base price alongside service and delivery charges, particularly in food and beverage, e-commerce and delivery services.

Armizan said KPDN would strengthen its monitoring and enforcement efforts. He urged consumers to report undisclosed fees or mismatches between advertised prices and amounts charged.