Trade Trade Descriptions Act 2011
It is an Act for the purpose of:
Promoting good trade practices and prohibiting false trade descriptions and representations, handling and false or misleading practices with regard to the supply of goods and services.
Enforcement of scratch and win with regard to the act is to eradicate “False or misleading statements relating to contests, games, etc.” implemented under the Trade Descriptions Act 2011. This Act prohibits the use of trade descriptions and false statements, handling and false or misleading practices with regard to supply and services in order to protect consumers / the public from unethical trade practices. “Scratch and Win”, “Tear and Win” or “Scan and Win” activities and the like are considered unethical and false and providing misleading statement for the purpose of this Act.
Section 20, Trade Descriptions Act 2011
The scratch and win activities which aim to give the lucky buyer the opportunity to win a prize as a reward do not require permission to run it at this time. However, contests and games of “Scratch and Win”, “Tear and Win” and the like that is used as a tool / method to attract consumers with the intention of deceiving them is an offense.
Section 20 – False or misleading statements relating to contests, games, etc. stipulates that no person shall make any false or misleading statements, that is:
- The goods or services offered by him can facilitate victory in any contest or game of fate;
- Any person has already won, will win, or will, on doing a particular act, win a prize or other equivalent benefit.
Whereas in fact:-
- There is no prize or other equivalent benefit;
- Such prize or other equivalent benefit does not exist as offered; or
- Taking any action in relation to claiming the prize or other equivalent benefit is subject to that person having to pay money, to bear cost or to abide by any unreasonable requirements
Penalty
Any person who contravenes section 20 is guilty of an offense and upon conviction shall be punishable:
- (For Individuals);
First offense: A fine of up to RM250,000 or imprisonment not exceeding 3 years or both for the individual.
Second offense:A fine of up to RM500,000 or imprisonment not exceeding 5 years or both. - (For Organizations);
First offense: Fines of up to RM500,000
Second offense: Fines of up to RM1,000,000.