Consumer Protection on Unfair Contract Terms: Legal Analysis of Exemption Clauses in B2C Transactions in Malaysia

Abstract

Globally as part of the economy, the widespread current practice of recent massive standardized large-scale contracts has expanded the oppression of consumers. Consumer interests and rights have become abused due to exemption clauses in these contracts that include terms that are unfair. These additions reveal an increase in consumer rights and interests having been abused. Corporate accountability and integrity in the field of consumer protection should be reviewed. This study illustrates that the development of exemption clauses has assisted in market failure and consumer rights have become abnegated. The research has been carried out through the application of content analysis methodology mainly centered around the review of the literature. It also examines consumer contract exemption clauses from their legal position in selected countries including Malaysia. A valuable tool to ensure corporate accountability and integrity is the application of legal methods. Using these should assist in rectifying market imperfection. This paper aims to show an approach to exemption clauses through the Malaysian judiciary. A solution is also proposed using legislation that echoes similar developments in other countries such as in United Kingdom, which should assist to address this area of the law by balancing the rights of consumers and corporate bodies in Malaysia. These suggestions will go hand in hand with the increase in paternalism, and the objectives of achieving sustainable development through corporate accountability and integrity. Contribution/ Originality: This study contributes to the existing literature on unfair contract terms. It adds to the debate on regulating exemption clauses in B2C transactions in Malaysia in terms of the legal analysis of legislations and case-laws.

Perbedaan Perlindungan Privasi Konsumen Di Industri Keuangan Dan Non-Keuangan

“…Hal ini masih dianggap merugikan konsumen dan menguntungkan produsen (Amin, 2012). Usulan pemakaian klausula pengecualian untuk mengatasi pemakaian klausula baku sebagaimana dipergunakan di Inggris (Abdullah, 2018).…”

Legal Theory and Raison D’etre Behind the Use Of Unfair Contract Terms

“…In the 19 th century, the widely used exclusion clause was a part of a laissez-faire philosophy. It was derived from the theory of freedom of contract which unfair trade practices and have undermined consumer rights in many commercial transactions (Abdullah & Shaik Ahmad Yusoff, 2018). The clause in the standard form of a contract that excludes the liability of a contracting party for breaches of the specified or implied terms of the contract is operated harshly and to the detriment of consumers (Mahmood, 1993).…”