TRIBUNAL FOR CONSUMER CLAIMS :

THE MALAYSIAN EXPERIENCE

SIXTH ANNUAL AIJA

TRIBUNALS CONFERENCE
5 6 JUNE 2003

NOOR AZIAN BINTI SHAARI

CHAIRMAN
TRIBUNAL FOR CONSUMER CLAIMS
MINISTRY OF DOMESTIC TRADE
AND CONSUMER AFFAIRS
MALAYSIA
 CONTENTS

MATTERS PAGE

Introduction 1

Objective 1

Membership 2

Jurisdiction 2

Limitation of Jurisdiction 23

Type of Claims 3

Procedures of Filing and Registration 4

Negotiation for Settlement 5

Hearing Procedure 5

Awards of Tribunal 6

Enforcement of Award 7

Criminal Penalty for Non Compliance of Award 7

Office of Tribunal 7

Conclusion 8
 TRIBUNAL FOR CONSUMER CLAIMS :
THE MALAYSIAN EXPERIENCE

1. INTRODUCTION

Tribunal is a board established under the law to adjudicate certain

matters such as claims by an individual.

Amongst the tribunals set up under the Law in Malaysia are -

Co-operative Tribunal The Co-operative Societies Act 1993 (Act

No. 502)

Tribunal for Consumer Claims Consumer Protection Act 1999

(Act 599).

Tribunal for Homebuyer Claims Housing Developers (Control

and Licensing) (Amendment) Act 2001.

The Tribunal For Consumer Claims Malaysia was established under

the Ministry of Domestic Trade and Consumer Affairs. The Tribunal
came into operations on 15 November 1999.

Before the establishment of the Tribunal, disputes between a consumer

and a supplier or manufacturer may be heard in a civil court which
often involves protracted trials, high legal and other cost and
postponements. These are some of the reasons why consumers may be

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 reluctant to pursue their claims against irresponsible and
unscrupulous suppliers or manufacturers in the court, especially when
the amounts claimed are small.

2. OBJECTIVE

The Tribunal For Consumer Claims is an independent body

established under the Consumer Protection Act 1999 (Act No. 599)
(hereafter referred to as the Act) with the primary function of hearing
and determining claims filed by consumers under the Act .

The primary objective of establishing this Tribunal is to provide an

alternative forum for consumers to file claims in an easy, inexpensive
and speedy manner.

3. MEMBERSHIP

The Tribunal shall consist of the following members who shall be

appointed by the Minister of Domestic Trade and Consumer Affairs.

(a) a Chairman and a Deputy Chairman from among officers of the

Judicial and Legal Service;

(b) not less than five members being persons who are qualified
persons within the meaning of the Legal Profession Act 1976
(Act No. 166). These members shall hold office for a term not
exceeding three years.

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 The Minister of Domestic Trade and Consumers Affairs has appointed
nine members to hold office as Tribunal members.

4. JURISDICTION
The Tribunal shall have jurisdiction to hear and determine-

(a) any claim in respect of any matter within its jurisdiction

provided under the Act;

(b) where the total amount claimed does not exceed ten
thousand ringgit (RM10,000.00 ) ; and

(c) any other matter prescribed by the Minister by order

published in the gazette.

The Act shall apply in respect of all goods and services that are offered
or supplied to one or more consumers in trade. [S.2(1) of the Act].

The jurisdiction of the Tribunal shall be exercised by the Chairman,

Deputy Chairman or any member of the Tribunal selected by the
Chairman sitting alone.

5. LIMITATION OF JURISDICTION

The Tribunal shall have no jurisdiction in respect of any claim

(a) arising from personal injury or death;

(b) for the recovery of land, or any estate or interest in land;

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(c) in which the title to any land, or any estate or interest in land, or
any franchise, is in question;

(d) in which there is a dispute concerning-

the entitlement of any person under a will or settlement

or on any intestacy;

goodwill;

any chose in a claim; or

any trade secret or other intellectual property.

The jurisdiction of the Tribunal shall be limited to a claim that is based

on a cause of action which accrues within three years of the claim.

According to S. 2(2) of the Act, the following shall not apply

(a) securities as defined in the Securities Industry Act 1983 (Act No.
280);

(b) futures contracts as defined in the Futures Industry Act 1993

(Act No. 499);

(c) contracts made before the date on which this Act comes into
operation ie. 15 November 1999;

(d) in relation to land or interests in land except as may be expressly

provided in this Act;

(e) services provided by professionals who are regulated by any

written law;

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 (f) healthcare services provided or to be provided by healthcare
professionals or healthcare facilities; and

(g) any trade transactions effected by electronic means unless

otherwise prescribed by the Minister.

6. TYPE OF CLAIMS

A consumer may lodge a claim with the Tribunal claiming for any loss
suffered on any matter concerning his interests as a consumer arising
from

a false or misleading conduct, false representation or unfair

practice.

safety of goods and services.

right against a supplier in connection with guarantee.

right against a supplier in connection with any guarantee

implied by the Act in relation to services.

right against a manufacturer in connection with any express

guarantee given by the manufacturer.

7. PROCEDURE OF FILING AND REGISTRATION

The procedures for filing and registration of a claim are as follows:

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(a) Every claim shall be in Form 1 which can be obtained free from
he Tribunals office .

(b) Form 1 must be completed in 4 copies by the claimant and filed

in the nearest office of the Tribunal;

(c) Filing fee for Form 1 is RM5.00 and an official receipt will be
issued to the claimant;

(d) The Secretary or Assistant Secretary to the Tribunal shall cause

Form 1 filed with the Tribunal to be registered, dated, signed
and sealed with the seal of the Tribunal and shall return two
sealed copies to the claimant for service on the respondent;

(e) A respondent upon receipt of the sealed copy of Form 1 from the
claimant shall, if he disputes the claim, file his defence and
counter-claim (if any) in Form 2 which can be obtained free from
the nearest Tribunals office.

(f) Form 2 must be filed in 4 copies at the same Tribunals office

where Form 1 was filed within 14 days after the receipt of Form
1 by the respondent;

(g) Filing fee for Form 2 is RM5.00 and an official receipt will be
issued to the respondent;

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 (h) Form 2 will be registered, dated, signed and sealed by the
Secretary or Assistant Secretary to the Tribunal and two sealed
copies of Form 2 will be returned to the respondent for service to
the claimant.

8. NEGOTIATION FOR SETTLEMENT

(a) The Tribunal shall, as regards every claim within its jurisdiction,
assess whether, in all the circumstances, it is appropriate for the
Tribunal to assist the parties to negotiate an agreed settlement in
relation to the claim.

(b) In making an assessment the Tribunal shall have regard to any

factors that, in the opinion of the Tribunal, are likely to impair
the ability of either or both of the parties to negotiate an agreed
settlement.

(c) Where the parties reach an agreed settlement, the Tribunal shall
approve and record the settlement and the settlement shall then
take effect as if it is an award of the Tribunal.

(d) Where it appears to the Tribunal that it would not be

appropriate for it to assists the parties to negotiate an agreed
settlement in relation to the claim; or

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 (e) The parties are unable to reach and agreed settlement in relation
to the claim, the Tribunal shall proceed to determine the dispute.

9. HEARING PROCEDURE

(a) Upon a claim being lodged with the Tribunal, the Secretary or
Assistant Secretary to the Tribunal will issue a notice in Form 4
stating the date, place and time of hearing and thereafter serve
the notice of hearing on both the claimant and the respondent,
not less than 14 days before the date of hearing.

(b) No party shall be represented by an advocate and solicitor

during a hearing before the Tribunal and every party to a
hearing shall conduct its won case at such hearing. [s. 108(2) of
the Act].

(c) If the claimant is a minor or a person under a disability he may

be represented by his next friend or guardian ad litem.

(d) Where a respondent is a company or a firm, it may be

represented by its full time paid employee.

(e) The hearing before the Tribunal shall be presided over by a

member of the Tribunal (known as a President during such

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 hearing) sitting alone, who may at any time assist the parties in
conducting their cases.

(f) At the hearing of a claim, every party shall be entitled to attend

and be heard. [s.108(1) of the Act].

(g) All proceedings before the Tribunal shall be open to the public
(s. 109 of the Act).

10. AWARDS OF TRIBUNAL

(a) Tribunal shall, where practicable, make its award within sixty
days from the first day the hearing before the Tribunal
commences.

(b) At a hearing the Tribunal may make any one or more of the
following awards:

that a party to the proceedings pay money to any other

party;

that goods be supplied or re-supplied in accordance to the

contract to which the consumer is a party;

that goods supplied or re-supplied to the consumer be

replaced or repaired;

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 that the price or other consideration paid or supplied by the
consumer or any other person be refunded to the consumer
or that person;

that a party comply with the guarantee;

that money be awarded to compensate for any loss or

damage suffered by the claimant;

that the contract be varied or set aside, wholly or in part;

that cost (not exceeding RM200.00) to or against any party

be paid;

that interest be paid on any sum or monetary award at a

rate not exceeding eight per centum per annum, unless it
has been otherwise agreed between the parties; and

that the claim is dismissed.

11. ENFORCEMENT OF AWARD

(a) Every agreed settlement recorded by the Tribunal and every

award made by the Tribunal shall be final and binding on all
parties to the proceedings.

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 (b) Every award made by the Tribunal shall be deemed to be an
order of a Magistrates Court and be enforced accordingly by
any party to the proceedings in a Magistrates Court having
jurisdiction in the place where the award was made.

12. CRIMINAL PENALTY FOR NON COMPLIANCE OF AWARD

Any person who after fourteen days fails to comply with an award
made by the Tribunal commits an offence and shall on conviction

be liable to a fine not exceeding five thousand ringgit or to

imprisonment for a term not exceeding two years or to
both;

in the case of a continuing offence, the offender shall, in

addition to the penalties above, be liable to a fine not
exceeding one thousand ringgit for each day or part of a
day during which the offence continues after conviction.

13. OFFICE OF TRIBUNAL

(a) The Government has appointed a Secretary to the Tribunal and a

number of Assistant Secretaries and other officers for the
carrying out of the functions of the Tribunal.

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 (b) The Tribunals head office at Kuala Lumpur is manned by the
Secretary to the Tribunal who is assisted by two Assistant
Secretaries and six other officers whilst each state office is
manned by two Assistant Secretaries.

(c) The Tribunals head office is situated at the 16th Floor, Putra
Place, 100 Jalan Putra, 50622 Kuala Lumpur, Malaysia.
(Telephone No: 603 40423058, Fax No: 603 40424259 ,
http://tribunal.kpdnhq.gov.my)

14. CONCLUSION

With the existence of the Tribunal the consumers may now utilise the
services of the Tribunal to protect their interest and rights as
consumers and to seek redress against unscrupulous and unethical
traders and suppliers of goods.

The number of claim filed by consumers increased over the years.

There were 291 claims filed in 2000, 1155 claims in 2001 and 2649
claims in 2002. The Tribunal continues to strive for greater awareness
among the general public on the existence and functions of the
Tribunal.

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Tribunal For Consumer Claims
Malaysia

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