Malaysia Online Advertising and Claims Rules: What You Cannot Say, and How Heavy the Penalties Are

When advertising e-commerce in Malaysia—product copy, livestream selling, social posts—the main red lines come from Part II of the Consumer Protection Act 1999 (Act 599): it prohibits misleading conduct, false or misleading representations, fake discounts and bait advertising, with the competent authority being the KPDN (Ministry of Domestic Trade and Cost of Living). Content disseminated online is additionally governed by the MCMC (Malaysian Communications and Multimedia Commission) Content Code and the Communications and Multimedia Act 1998. In short: you may market, but you may not say anything that misleads consumers—exaggerated efficacy, fake discounts and fake scarcity may all be unlawful.

The red lines in Part II of the Consumer Protection Act 1999

The test for "false" and "misleading" is whether the statement or conduct is capable of leading consumers into error—there is no need to prove that anyone was actually deceived; the mere likelihood of misleading may suffice.

The three lines e-commerce crosses most often

• Exaggerated efficacy / unproven effects: cosmetics claiming therapeutic effect (e.g. "cure," "eliminate disease"), supplements claiming efficacy, or ordinary food claiming medical benefits may all breach both product regulations and s10.
• Fake discounts / fabricated original prices: presenting a high price that was never actually charged as the "original price" and then discounting from it is a misleading indication as to price (s12); this is especially common—and complained about—during big sales.
• Fake scarcity / fake countdowns: falsely claiming "only 3 left" or "last day" when that is not the case may fall under s15.

Penalty tiers

Under s25:

• A body corporate: on conviction, a fine not exceeding RM250,000; for a repeat offence, not exceeding RM500,000.
• An individual: a fine not exceeding RM100,000, or imprisonment not exceeding 3 years, or both; for a repeat offence, a fine not exceeding RM250,000 or imprisonment not exceeding 6 years.

Consumers may also bring a claim before the Tribunal for Consumer Claims (TTPM), a simple and fast process. Influencers and livestream hosts who endorse a brand and make false claims may likewise be held liable.

Don't forget the MCMC Content Code

Advertising content disseminated online is further governed by the MCMC Content Code: advertisements must not contain unlawful content, must not induce anyone to break the law, and must not contravene the ethical codes of relevant professional bodies. Online promotion of specific products such as medical and financial products is subject to additional, stricter individual rules, which should be checked item by item before publishing.

Different product categories have their own boundaries of "what you may / may not say": for cosmetic advertising see cosmetic advertising rules, and for food advertising see food advertising and promotion rules; for overall platform-listing compliance see Lazada Malaysia listing compliance.

In practice: keep records, review scripts, don't hide behind the platform

Beyond the law, two more practical layers matter. First, the platform's own advertising and content policies: Lazada, Shopee and TikTok Shop each have review mechanisms for exaggerated efficacy, fake discounts, off-platform traffic diversion and sensitive wording—crossing the line can, at best, demote your product and, at worst, restrict your account, and this is a "clear both sets" situation alongside national law. Second, your ability to substantiate: once a complaint is filed, you must be able to produce the basis for your claim (test reports, ingredient documents, actual historical selling-price records). So before posting copy, ask three things—is there a basis for this statement? Did I really sell at this "original price"? Is this scarcity real? Post only if you can answer.

Livestreams and short videos are especially prone to going off the rails: live commentary has no script review, and a host's single line—"eat this and you'll slim down," "doctors all recommend it"—can breach both product regulations and s10. It is advisable to write the permitted selling points and a list of banned words into a script in advance, have the host follow it, and keep livestream replays for reference.

Frequently asked questions (FAQ)

Q: I didn't lie—I just made the selling points sound nicer. Is that still unlawful? The key is not your subjective intent but whether the statement is capable of leading consumers into error. Even without malice, an effect, origin or efficacy claim exaggerated to the point of being likely to mislead may still breach s10.

Q: How do I label a big-sale discount so it isn't a fake discount? The "original price" must be a price at which the product was actually sold, not a fabricated high price. Base your discount on the real transaction price and keep supporting price records, and you won't fall into the price-misleading trap of s12.

Q: If an influencer / livestream host makes a claim that goes wrong, who is responsible? Both the brand and the person who made the claim may be held liable. The commissioning party should provide correct information and review the script; the endorser is also responsible for the effect claims they make—don't read out unverified efficacy scripts.

Q: Are these penalties actually enforced? KPDN receives a large volume of misleading-advertising complaints every year. Although actual convictions are limited, product takedowns, administrative penalties and reputational damage are real risks—don't count on getting lucky.

Q: Does a cosmetic saying "reduces fine lines" count as a therapeutic claim? Cosmetics may make appearance, cleansing and beautifying claims, but must not claim to treat, alter physiological structure, or have therapeutic effect. Whether a particular phrase crosses the line is subject to the NPRA's boundaries on cosmetic claims and case-by-case determination.

Self-check checklist

• [ ] Effect / origin / ingredient claims in the copy all have a basis, with no exaggeration or unproven efficacy
• [ ] The "original price" is a price actually sold, and the discount can be substantiated
• [ ] No fabricated scarcity, countdowns or "only N left"
• [ ] Terms of gifts / free offers / prize draws are clear and not misleading
• [ ] Medical / special-category claims checked against the individual regulations and the MCMC Content Code

Conclusion

The core of compliant advertising in Malaysia is "do not mislead." Avoid fake discounts, fake scarcity and exaggerated efficacy, build claims on verifiable facts, and then check against the individual product category and the MCMC Content Code—and you will greatly reduce the risk of KPDN inspection and consumer claims.

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This article is compiled from official sources for reference only; actual compliance is subject to the latest official texts and reviews of the competent authorities.